The 'economy of North America' comprises more than 514 million people in 23 soverign states and 15 dependent territories. It is marked by a sharp division between the northern English and French speaking countries of
Canada and the
United States, which are among the wealthiest and most developed nations in the world, and the countries of
Central America and the
Caribbean that are less developed.
Mexico lies in between these two extremes as a
newly industrialized country or NIC, and is a part of
NAFTA and the only Latin American member of the
OECD.
Economic development
Roaring Twenties
The 1920s were a time of economic growth and prosperity in North America. Increased incomes as well as the large increase in the ability of private citizens to obtain credit resulted in a surge of consumer spending after
World War I.
[1]
Great Depression
The
Great Depression began in North America in October 1929. The start is often dated to the stock market collapse of
Black Friday although this was not the cause of the Great Depression.
[2] Canada and the United States experienced especially large declines, with the gross domestic producting fall 37% from 1929 to 1933 in the United States, and 43% in Canada over the same period.
[3] The economy reached its lowest point in 1933, however recovery was slow. The outbreak of
World War II in 1939 created demand for war materials that brought about the end of the depression.
The Great Depression spurred increased government intervention in the economy in North America. The United States introduced unemployment insurance, a
minimum wage and standardised working hours under the
New Deal.
[4] Canada introduced similar measures.
[5] Mexico nationalised some key industries during the Great Depression, with the railroads nationalised by 1937 and the oil industry nationalised in 1938.
[6]
World War II
The large scale enlistment of men into armed forces during
World War II women entered the workforce en masse, filling many jobs in manufacturing and technical areas that had previously been closed to women.
[7] The economic output in North America increased substantially, with unemployment practically eliminated in the United States.
[8] Rationing severely reduced the availability of consumer goods, with the increase in industrial production coming from the demand for war materials.
Cold War
US-Canada Free Trade Agreement and NAFTA - a new era of economic integration
The
Canada-United States Free Trade Agreement of 1989 and the subsequent expansion to
NAFTA triggered a dramatic increase in trade between these three countries, with Mexican trade with the United States and Canada increasing threefold.
[9] Over 85% of Canadian exports in 2006 went to the United States.
[10]
Regional variation
''to be completed''
Trade blocks
Asia-Pacific Economic Cooperation
The '
Asia-Pacific Economic Cooperation' (APEC) is a group of
Pacific Rim countries which meet with the purpose of improving economic and political ties. APEC's stated goals are aimed at free and open trade and investments by cutting tariffs between zero to five percent in the Asia-Pacific area for industrialised economies by 2010 and for developing economies by 2020.
The organisation has members from four continents, those from North America are
Canada,
Mexico and the
United States.
Caribbean Community
The '
Caribbean Community' (CARICOM) was created ''"To provide dynamic leadership and service, in partnership with Community institutions and Groups, toward the attainment of a viable, internationally competitive and sustainable Community, with improved quality of life for all"''.
- On January 1, 2006 six members: (
Barbados,
Belize,
Guyana,
Jamaica,
Suriname and
Trinidad and Tobago) un-officially ushered in the
Caribbean (CARICOM) Single Market and Economy (CSME).
- At the official signing of the protocol on January 30, 2006 in Jamaica, A further six members: (
Antigua and Barbuda,
Dominica,
Grenada,
Saint Kitts and Nevis,
Saint Lucia and
Saint Vincent and the Grenadines) announced their intention to join by the second quarter of 2006.
Montserrat, a British Oversees territory is awaiting approval by the
United Kingdom.
Haiti(suspended) and
the Bahamas have no immediate plans to join.
Central American Free Trade Agreement
The '
Central American Free Trade Agreement' (CAFTA) is an agreement between the
United States and the Central American countries of
Costa Rica,
Guatemala,
El Salvador,
Honduras, and
Nicaragua. The treaty is aimed at promoting
free trade between its members.
Canada and
Mexico are negotiating membership.
North American Free Trade Agreement
The '
North American Free Trade Agreement' (NAFTA) is an agreement between
Canada,
Mexico and the
United States to eliminate tariffs on goods traded between themselves.
Although currently only a trade agreement, with no supranational bodies or laws as in the
European Union, all three members support 'proposals to move towards an EU style organisation'. It is unknown whether or not this may eventually develop into a North American Union similar to that of
Europe.
Currency
Below is a 'list of the currencies of North America', with exchange rates between each currency and both the ''Euro'' and ''US Dollars''
as of 17th November 2004.
''Table correct as of 17th November 2004''
Economic sectors
Agriculture
Manufacturing
Service
Investing and banking
Global trade relations
References
1. 1920's Business and Economy
2. Outline of the U.S. Economy
3. The Great Depression (1929-1939): historical context, economic impact and related links
4. U.S. Department of Labor -- Brief History of DOL - The Department in the New Deal and World War II, 1933-1945
5. Unemployment Insurance Act (1941): historical context, economic impact and related links
6. The Good Neighbor Policy and the Nationalization of Mexican Oil: A Reinterpretation, Klayton R Koppes, , , , 1982
7. American Experience
8. The National World War II Museum, New Orleans
9. CIA - The World Factbook -- Mexico
10. CIA - The World Factbook -- Canada
Economy by country/territory
See also
★
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