Geopolitical competition among the major powers is reshaping globalization. Economic interdependence, once associated with efficiency, growth and stability, is increasingly seen as a source of vulnerability. Critical minerals, energy, technologies and supply chains are becoming instruments of power and even economic coercion, while the international system moves towards multipolar competition and a fragmented multilateral order.

At the same time, democratic institutions around the world are experiencing sustained deterioration alongside growing polarization, while disinformation and the misuse of artificial intelligence are on the rise. Progress on gender equality and inclusion is also under pressure, as are international agreements on climate action.

The recent report Ruptures and Opportunities: Proposals for Latin America and the Caribbean to Thrive in the New Geopolitical Era, prepared by the ECLAC Commission on Geopolitics, Globalization and Development for Latin America and the Caribbean, analyses transformations in the world order and makes recommendations on how the region can navigate them. 

For Latin America and the Caribbean, this new landscape presents both risks and opportunities. Although the region cannot control the ruptures taking place globally, it possesses assets that the world needs and whose value has increased in the new geopolitical context. For example, the region has abundant strategic mineral resources, including 46% of the world’s lithium reserves, 35% of its copper reserves and 23% of its rare earth reserves. It is also the world’s largest net food-exporting region, hosts nearly half of global terrestrial biodiversity and one third of the planet’s freshwater resources, and has one of the cleanest electricity mixes in the world. 

Beyond natural resources, the region’s strategic assets include productive capabilities, human talent and technology ecosystems, as well as its status as a region free of nuclear weapons and inter-State conflicts. With a market of more than 660 million people, the region has significant potential to develop larger markets and regional value chains.

Turning these strengths into development requires progress in three areas. First, the region must mobilize its strategic assets by promoting value addition, innovation and productive transformation. Second, it must strengthen governance, democratic institutions and State capacities. Third, it must expand its capacity for international action through stronger regional integration and cooperation, diversified partnerships and stronger geopolitical analysis capabilities. Greater regional cooperation is especially important, as it could help build value chains, expand markets and coordinate action in areas such as energy and infrastructure. Likewise, in a world marked by rivalry among major powers, the Commission advises countries in the region to avoid rigid alignments and favour flexible partnerships with partners that share common interests and perspectives.

In short, the report’s main message is that the world has changed, and that Latin America and the Caribbean has strategic assets that can help it successfully navigate the new global landscape. The challenge is to turn the opportunities represented by those assets into development and greater international influence through clear strategies and a more pragmatic approach to regional cooperation.