The article, "Spain’s crisis and Latin America’s cash prompt a gradual rebalancing of relations" published in The Americas explains the odd transition of economies between Spain and Latin America. For two decades now, Spain has always held higher assets in Latin America, as opposed to the other way around. Latin American acquisitions in Spain jumped in 2013; far above that of Spain, who actually dropped the number in 2012. Many connect this with Mexico's actions, they have bought stakes in Banco Popular and Sabadell, along with many other firms and previous business ties. Even Brazil is accounted for almost a quarter of the global profits to Santander of Spain. With the economic turning of the tide, many Spaniards have emigrated to Latin America. I believe this is an interesting article as it reflects the rising power of Brazil and the hurting Spanish economy. It will be interesting to see how exactly this affects the process of recovery in Spain and the rise of Brazil to power.
I think this is a very interesting subject. The common language between Latin America and Spain sets the stage for a similar course as the United States and Britain, a relationship from which both countries benefited. Perhaps there is no clearer sign of the emerging power of new markets in the world economy. I suspect strongly that this will have two positive effects. The first is the obvious influx of badly needed capital into the Spanish economy and its firms. The second is the emigration of many Spaniards who are currently struggling with astronomical unemployment, while this may seem bad at face value, Spain has too many people and too little work at the moment. Latin America will benefit massively from the skills and expertise of the Spanish people, further fueling growth. Don't be too quick to worry for Spain, while it isn't what the government would hope for, the massive immigrant population is always there to pick up slack in unskilled labor when the economy eventually returns. How the Spanish government reacts to what is currently going on will be very interesting because it may be that attempts to keep Spaniards at home might limit future investment from Latin America, great foresight is not something many governments are renowned for.
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