Finance and the Relative Position of Latin America in the International Division of Labor

The present proposal aims to understand the current process of financialization of geographic space, with emphasis on the relative position of Latin American countries in the international division of labor. Since at least the 1970s, the external indebtedness of these countries has been a key element to maintain their subordinated position in the global economy, and several changes have taken place in Latin American countries, which has increased the importance and influence of finance in economic, political and geographical issues. Recently, the privatization and denationalization processes of the banking systems has increased the influence of transnational vectors in the organization of these territories, which makes it even more difficult to propose policies of an integrating nature in the continent. Simultaneously the financialization of daily life increased, as portions of the local population are hierarchically included in the financial system, raising their economic and social vulnerability. The session intends to discuss these processes and also other implications, such as the interdependencies between economic activities, financial investors and the increase of financial logics into manufacturing and services companies.