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The expected population of Latin America & the Caribbean
Projected regional GDP
will face increased pressure to adapt new methods for increasing crop yields and more efficient harvests.
WATER USE & CONSERVATION
The Andean glaciers are receding, and the populations that have historically relied on them as water sources face the twin tasks of developing alternatives and establishing reasonable conservation guidelines. The region has been fortunate to avoid, for the most part, the droughts that have afflicted so many other parts of the world. Latin America now has the opportunity to learn how other regions have met the challenge before they too face significant water shortages. Those lessons are especially critical as the need for water increases for a variety of reasons, including generating electricity, irrigating crops, and watering livestock, as well as meeting the increased demands of the growing population.
ENERGY GENERATION & CONSUMPTION
Energy production continues to be a chal- lenge for the region, hampered by institu- tional and political obstacles. Fossil fuels comprise the region’s energy mainstay, a fact highlighted by discoveries of pre-salt oil-bearing rock in Brazil, ultra-heavy crude in Venezuela, and shale gas in sever- al places, including Argentina and Mexico. The region has significant opportunities for producing biofuels, though, and there is significant work going on with solar and wind power.
An analysis performed by Frost & Sullivan, the global market research firm, indicates that the Latin American market expects to be producing 35 gigawatts (GW) of renewable energy as early as 2020. The bulk of this, about 25 GW, will come from wind power. By 2030, the region’s power grid will be enhanced by the investment of more than US $550 billion in high-voltage power lines, many of them cross-border.
DIGITAL & BROADBAND CAPABILITIES AND PARTICIPATION
By 2030, Latin America will be a full- fledged partner and participant in the digital revolution. It will have launched at
least 32 space satellites, expanding current data transmission capabilities significant- ly. Latin American participation in the internet, mobile communication, and pay television industries is also expected to grow dramatically, supported by multi-bil- lion dollar investments in broadband infrastructure.
In 2010, only about 36 percent of the total population used the internet at all, from work or home or both. Of this minori- ty, just over half—about 54 percent—par- ticipated in any social media channel. By 2020, those figures are expected to increase dramatically, with 74 percent of the popu- lation enjoying internet access, and among those, about 78 percent connected to at least one major social networking site.
THE ELEMENTS OF GROWTH
Despite this array of challenges and de- velopments facing the continent over the next decade and a half, there seems to be a consensus that one of the most essential components of future growth and stability is continued establishment and enhance- ment of education and health programs. These programs contribute to reductions in both the poverty rate and income in- equality, although it is clear there are still great strides to be made in these areas.
Another critical element of growth is determining the most successful strategy to achieve and maintain it. Until now, the Latin American economy has been driven largely by commodity exports; however, prices may stagnate or decline, and grow- ing domestic demand may reduce exports. A strategy that concentrates more on manufacturing, construction, and services would be more self-sustaining and better capable of helping the region ride out any future global economic downturns. The events of the next decade or two will be critical to crafting the Latin American ex- perience for the 21st century. Governments and institutions must continue to bring strong political and economic pressure to reinforce regional stability, regulate envi- ronmental issues, and bolster education and healthcare in order for Latin Amer- ica’s population to face the challenges of the modern world.
“Over the next two decades, climate change and a rising middle class will lead to shifts in living standards, citizen security, and food and water availability. Government ac- tion will be required to prevent these negative consequences, including investment in clean energy and energy-efficient technology.” — Sergio Blair, former Chilean senator
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