Extractivism & Its Implications: The Economic Trap of South America's Resources

Описание: Session 8 | Extractivism and its implications

South America is caught in a cycle of low growth, high debt, and a deepening dependency on primary resources. This phenomenon, known as 'primarization,' presents profound challenges to the region's developmental future.

In this precise macroeconomic analysis from the Unicamp Institute of Economics, experts dissect the structural implications of extractivism. The discussion moves beyond environmental concerns to reveal how commodity dependence systematically constrains economic potential. The session references foundational concepts, including Thirlwall's Law and the 'Prebisch cross,' to explain the persistent structural barriers to growth.

This lecture explores:

The "vicious circle" of slowing exports and rising foreign indebtedness.

The role of Foreign Direct Investment (FDI) as a flawed 'panacea' for development.

Comparative analysis of resource-rich nations like Australia, Canada, and Norway.

The urgent need to rethink industrial policy and the role of the state in the 21st century.

This is a critical analysis for economists, policymakers, students, and researchers interested in development economics, political economy, and the future of the Global South.

00:00 – Introduction: The Problem of Extractivism
01:20 – Learning from Success: Australia, Canada & Norway
02:05 – The Strategy: Backward Linkages & Enabling Sectors
04:19 – The South American Low Growth Trap
09:34 – Thirlwall's Law and the "Prebisch Cross"
12:31 – The Vicious Circle: Low Growth and Foreign Debt
16:35 – Is Foreign Direct Investment (FDI) the Solution?
20:08 – Rethinking Structuralism and the Role of the State
23:10 – Q&A: Paraguay, China, and Geopolitics
27:33 – Q&A: Transition Minerals (Lithium, Cobalt) & Climate

Entre os dias 27 e 29 de agosto de 2025, o Instituto de Economia da Unicamp sediou a Conferência Internacional Financing Climate Action in the South: The Scope for Innovation. As discussões abordam temas como governança global, arquitetura financeira internacional, transição ecológica, sistemas de inovação, multilateralismo e justiça climática — com foco nas perspectivas e estratégias dos países do Sul Global.

Realização: Instituto de Economia da Unicamp
Coordenação: Prof. Dr. Bruno De Conti
Direção do IE-Unicamp: Prof. Dr. Célio Hiratuka
Apoio: CAPES, UNICAMP, Rede IDEAs, PERI-UMass