sectors. The financial equation in Argentina could change due to potential funding needs from the public sector. However, some institutional changes and increasing disputes between the government and the business sector could derail the Argentine state of economy and investments in the short term.
Brazil: Brazil's economy is growing steadily with activities in the energy sectors, and surge in mergers and acquisitions. Being the largest economy in the region, investments are picking up, and the oil and gas sectors are expected to be the largest beneficiaries. However, much of the economic development is subject to approval of some key bills in the Senate.
Chile: Chile's economy has remained quite stable despite the recession. The economy is set for a boost in 2010 with growth in renewable energy opportunities.
Colombia: Colombia's economy is known to encourage free markets and private participation. Being a key foreign investment destination for the US, 2010 promises to augur well for the approval of the US - Colombia Free Trade Agreement by the US Congress.
Peru: Peru expects strong economic growth in 2010 due to its reputation of being one of the most sustainable economies in the Latin American region. Peru's banking system is one of the most robust ones in the world.
This figure represents the annual economic growth within the countries that conforms what is South America. Peru for example, has tried over the years to combat corruption while sustaining the economic growth.
Argentina's historically and over the years have had a high economic growth alternated with severe recessions, even this is an upper middle income country it has manage really well to maintaining this growth
Privatization is mainly the procedure in transferring ownership of a business, public entity, agency or enterprise from the public sector which is the government of any country to the private sector that could be any company that wants to take over. There are for types of privatization such as share issue privatization, asset sale privatization, voucher privatization and privatization from below. In South America the most common type of privatization is the assets sale which the government or public sector sells the entire organization or part of it.
The main reason why countries of South America and more developing countries in the world start privatization is because hard economic situations and those have driven these countries to privatization. In addition, "Serious budget deficits, high foreign debt, and high dependence on international agencies such as the world bank and IMF are what make public entities sell all their ownership. (Clarke and Pitelis 1993)
From my perspective privatization occurs for two main motives, first to help the economy making the institution that has being privatized with more power or is to protect the costumer in order to have a quality service. According the author of Economia, Mackenzie and Mookherjee "Privatization of infrastructure can have a direct impact on consumers by altering their acces to the network, the price they pay for the service, and the quality of the service received". "Privatization may also have indirect consumer effects if it causes changes in the prices of substitudes goods". The author of the book describes the data to examine the consumer impact; also the details the impact of the privatiza
