Question

Explain why populist or leftist leaders are nationalizing resources and what has been the impact on the nation.

Answer 1

When I finished the quiz it said the answer was "This trend toward resource nationalization is indicative of the competing political alternatives vying for control across South America. Following the economic collapse in the United States and throughout “first-world” industrialized nations, leftist presidents in countries such as Venezuela and Bolivia are taking advantage of the popular discontent throughout their nations to challenge the authority of traditional ruling elites. Time will tell what this means for the oil industry and other natural resources throughout South America. This trend toward resource nationalization is indicative of the competing political alternatives vying for control across South America. Following the economic collapse in the United States and throughout “first-world” industrialized nations, leftist presidents in countries such as Venezuela and Bolivia are taking advantage of the popular discontent throughout their nations to challenge the authority of traditional ruling elites. Time will tell what this means for the oil industry and other natural resources throughout South America. Although the leaders are promoting new measures to alleviate poverty that has not happened in great measure to date."

Answer 2

South American countries have been attempting to mirror the free market system of the United States since around 1980 (the "Washington Consensus"). This has lead to economic stagnation in these countries. In order to boost their own economies, they are now looking at the models of more productive nations whose economies are growing very rapidly and are attempting to mirror their market systems. The main countries being scrutinized are China and India, who have nationalized many of their industries/resources. This would explain the shift.