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Guano, gold, silver, rubber, wool and other natural resources currently make up the largest exports of South America. Currently, the average South American country spends 0.7% of gross domestic product on technological research and development. While many governments realize the benefits of South American STEM jobs, Rovira believes the private sector needs to do more to generate tech jobs and facilitate technological growth.
In those South American countries where forest plantations are important or have potential for development, investment in them is one option for creating jobs. Although the current economic crisis began in the United States of America, it is now affecting most countries around the world.
This article describes the impacts of the global financial crisis on the region’s economy and the forest sector in particular, and examines the potential for creating jobs based on a forest plantation programme.
The economic downturn that has taken hold in importing developed countries is thus expected to affect South American countries less than Asia’s export-oriented countries. Most South American countries’ exports, on the other hand, are based on commodities. The decline in commodity demand and prices is affecting South American economies to varying degrees. Because of several factors (including reduction of foreign investments, uncertainties, dividend remittances and capital repatriation by transnational companies), national currencies of some South American countries depreciated over the last months of 2008.
Forestry is an important economic sector for many South American countries, especially Chile, Brazil and more recently Uruguay. The strong decline in the housing sector in the United States, an important market for South American producers, caused the region’s softwood timber exports to the United States to collapse.

As in other parts of the world, prices of forest products have diminished in most South American countries in line with the reductions in international demand. Table 3 shows the direct labour demand created in establishing and managing forest plantations in Brazil, excluding jobs created indirectly at the nursery, in the supply chain and in harvesting operations. Several countries in South America, including Brazil, Chile and Uruguay, have already demonstrated the effectiveness of including support for the establishment of large plantations in the national development strategy.
Anglo American is a global mining company, historically based in Southern Africa, but now with extensive operations in Australia and South America, including Brazil, Chile, Peru and Colombia.
In 2004 Anglo American’s Socio-Economic Assessment Toolbox (SEAT) was implemented in communities surrounding Anglo’s operations in Chile.
The result was the “Emerge” programme, inspired by Anglo’s successful South African enterprise development programme, Anglo Zimele, which has been running for over 20 years. Anglo is already seeing the success of the South American programmes – in 2007 Anglo won one of just seven Presidential Seals awarded by the government to celebrate Chile’s bicentenary. South American economies, for instance, with a few exceptions, are less globalized than those of most developed and rapidly developing countries; thus international trade represents a relatively small share of the national gross domestic product (GDP). In a short time, a well-structured plantation programme can create (directly and indirectly) permanent jobs in rural areas, helping to mitigate the effects of financial crisis. It predicts that employment in the forest sector would gradually increase so that at the fifth year around 23 000 new direct jobs (in forest plantation establishment and management operations) would have been created. For some South American countries, part of the solution can be found in the forest sector.
Enterprise development is a very successful way of doing this - not only does it facilitate a more diverse and competitive supplier base but increasing jobs and skills in the area can help the local private sector be better prepared for a post-mining economy.

In South American countries, as in other developing and emerging countries, foreign direct investments are quickly declining. In Central America, exports from Honduras dropped more than 60 percent – a strong impact for a relatively small economy (Figure 2). In 2008, South America supplied 94 percent of all United States softwood plywood imports, Chile currently being the main exporter. It can be estimated that for each direct job in planting and management operations, two indirect jobs are created.
If indirect jobs are considered as well, around 70 000 people would be employed in the fifth year.
A non negligible share of the graduates works abroad at extraction or production premises (14 %), only on rare occasions in their country of origin, but most likely in energy production countries (Africa, USA, South America). In the relatively developed South American economies, declines in exports of manufactured goods are also a problem. In other South American countries, such as Argentina, the impact (so far) has been less intense. In the second semester of 2009, local currencies of most South American countries started to appreciate and prices tended to be stable.

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