Cape Caribbean Studies Unit 2 Workbook

The world economy is not what it used to be twenty years ago. For most of the 20th century, the world economy was characterized by developed (North) countries acting as 'center' to a 'periphery' of developing (South) countries. However, the recent rise of developing economies suggests the need to go beyond this North-South dichotomy.

The Latin America and Caribbean region experienced considerable economic growth during the first decade of the 21st century, and with it, large reductions in poverty and inequality. In recent years, without the favorable terms of trade that had fueled this boom, the region s policy makers have been scrambling to find new sources for sustainable growth and stability.