Historically, most of the Latin American nations have witnessed decades of slow or no growth, crippling inflation, increasing foreign debt, protectionism, the bloated government payrolls, money laundering problems, and currency fluctuations

What measures are now being taken by countries in that region that will begin the process of economic transformations?

The allure of the Latin American market has been its considerable size, its strategic location, and huge resource base. Many countries are implementing economic reforms such as priority to have a balanced budget and privatization of certain industries. Free markets, open economies, and deregulation are becoming governmental priorities. Tariffs are being lowered, and free trades are being encouraged. Global corporations are encouraged by import liberalization, lower tariffs, and the potential for establishing more efficient regional production. Many observers envision a free trade area within the entire region. The four most important preferential trading arrangements in Latin America are the SICA, the Andean Community, the Common Market of the South (Mercosur), and the Caribbean Community and Common Market (CARICOM).