Problems and Solutions to the South American Economy
Today the South American economy has many solutions to strengthening their economy, as well as challenges.
While South America has a very large amount of things that help the economy, these things also have downsides that, while the things themselves may do good for the economy, the downsides may not do so well on the environment.
The Galapagos Islands
First off, there are the Galapagos Islands off the coast of Ecuador. These beautiful islands contain some of the world's most intriguing animals, like Marine iguanas; the only iguanas in the world that swim in the ocean! The islands are also famous for its giant tortoises. These tortoises can get to weigh up to 600 pounds! Not to mention that the Galapagos Islands are the only place you will be able to see penguins in such a warm area...the Equator!
These beautiful islands are the perfect tourist attractions, which is good....and not so good.
The tourists of the Galapagos Islands spend money on hotels, tours, food, and souvenirs, which creates many jobs and has made the average income of the Galapagos Islands increase higher than anywhere else in Ecuador. Though this is a very good thing for the economy, it can also cause dangers to the habitat. As the tourism industry in the Galapagos Islands expand, the demand for urbanization; things like more roads, hotels, and airports. This can potentially harm the habitat of the islands in which the animals live and add to the cause of pollution.
These beautiful islands are the perfect tourist attractions, which is good....and not so good.
The tourists of the Galapagos Islands spend money on hotels, tours, food, and souvenirs, which creates many jobs and has made the average income of the Galapagos Islands increase higher than anywhere else in Ecuador. Though this is a very good thing for the economy, it can also cause dangers to the habitat. As the tourism industry in the Galapagos Islands expand, the demand for urbanization; things like more roads, hotels, and airports. This can potentially harm the habitat of the islands in which the animals live and add to the cause of pollution.
The Rain Forest
As many know, the Amazon Rain Forest is a very threatened place due to logging, mining and ranching. These acts, though they do good for the economy, hurt the environment, as do many other actions man takes today.
But despite this, there are a type of nut, the Brazil nut, that just may help preserve the rain forest. You want to help the economy, but how? Farming? Clearing the trees would not do much good. Though the soil is fertile, without the trees the soil doesn't stay fertile for long. Crops would barely be an option. So how can the rain forest help the economy? Well these Brazil nuts show that there is a way to gain from and make money off of the rain forest without destroying it.
Brazil nuts are hard pods, similar in size and shape to coconuts. The pods are filled with smaller nuts, which are sold all over the world. Due to the sale of Brazil nuts, South American countries have earned up to 44 million dollars per year! This is also a sustainable activity, meaning it can go on for years. Brazil nut trees continue to be planted with the help of rain forest rodents called agoutis, which have very sharp teeth, perfect for breaking open the Brazil nut pods. These rodents end up burying some of their heap of nuts for later but may forget where they had buried them, causing more trees to grow. As long as the forest is healthy, the Brazil nuts can continue to be harvested and sold.
But despite this, there are a type of nut, the Brazil nut, that just may help preserve the rain forest. You want to help the economy, but how? Farming? Clearing the trees would not do much good. Though the soil is fertile, without the trees the soil doesn't stay fertile for long. Crops would barely be an option. So how can the rain forest help the economy? Well these Brazil nuts show that there is a way to gain from and make money off of the rain forest without destroying it.
Brazil nuts are hard pods, similar in size and shape to coconuts. The pods are filled with smaller nuts, which are sold all over the world. Due to the sale of Brazil nuts, South American countries have earned up to 44 million dollars per year! This is also a sustainable activity, meaning it can go on for years. Brazil nut trees continue to be planted with the help of rain forest rodents called agoutis, which have very sharp teeth, perfect for breaking open the Brazil nut pods. These rodents end up burying some of their heap of nuts for later but may forget where they had buried them, causing more trees to grow. As long as the forest is healthy, the Brazil nuts can continue to be harvested and sold.
Oil in South America
Venezuela is a hot spot for oil. This South American country sells and produces more oil than all of the others. Good thing right? Oil is a multi-million dollar industry, all that money has to be great for the Venezuelan economy. And it is. But with a downside as well. Over 80% of Venezuela's export earnings come from oil and since Venezuela is most reliant on its oil resources, if the oil productions were to have a bad year or the price of oil falters, then that causes Venezuela to lose money, meaning less money for needs such as schools and new roads. When a country makes over 50% of its earnings on one resource (let alone 80%) then that makes it especially hard for that country to make it through the tough economic times. Downfalls in the resources can cause unemployment and loss of over millions of dollars in the country.
When the oil industry is flourishing, however, income of the oil production pours heavily into the economy.
When the oil industry is flourishing, however, income of the oil production pours heavily into the economy.