Pottery Barn Kids Lavender Anywhere Chair Ruffle Cover – Is it better to rely on raw materials or staples? The latest report of the United Nations Conference on Trade and Development (UNCTAD) answers this question: dependence on raw materials can negatively affect the economic development of a country. And the dependence on these products is complete in South America.
According to the State of Commodity Dependence 2019 report, dependence affects half of Latin American countries, meaning that more than 60% of their exports are agricultural products, minerals and energy materials.
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The report, which examines the situation in more than 180 countries, includes Peru. What is happening with us? The evolution of dependence on raw materials increased during 1995-2017.
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When in 1995 our country exported a total of more than 5,000 440 million US dollars, raw materials accounted for 4,000. 702 million dollars. In the period 2013-2017, transportation increased by 34,693 million US dollars, while about 70 percent of raw materials were exported, while only in 2017 the dependence increased to 80 percent.
In this way, 91% of exported raw materials are agriculture (20%), fuel (8%), as well as minerals, metals, precious stones and non-monetary gold (62%).
Similarly, there are five target markets for our product exports: China, the European Union, the United States, New Zealand and Canada.
Meanwhile, other points that complement the domestic transport structure are added value for agriculture, industry and services. Equally valuable is the participation of women in agriculture, industry and services.
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Despite the strong dependence, some South American countries managed to increase the export of industrial goods. One of them is Brazil: its exports outside of raw materials – especially in the automotive sector – increased by 160% and contributed to a 30% increase in exports in 2013-2017 compared to the initial period analyzed in 1998-2002.
However, in the case of Colombia, dependence increased from 66.5% to 80%, mainly due to the increase in oil prices and coal exports.
In countries such as Bolivia, the impact of raw materials was positive in 2018-2012, when their prices increased, moving from dependence on agricultural exports to exports of more minerals and energy products.
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Peru achieved a turnover of more than 21 million USD at the International Private Label Fair in Amsterdam on 07.11.2022.