Beginning in the 17th cent., the exploitation of the continent's resources and the development of its industries were the result of foreign investment and initiative, especially that of Spain, Great Britain, and the United States, but since World War II the nations of South America have sought greater economic independence. An increasing number of South American industrial centers have developed heavy industries to supplement the light industries on which they had previously concentrated.
An early obstacle to industrial growth in South America was the scarcity of coal. The continent has therefore relied on its petroleum reserves, most notably in Venezuela and also in Argentina, Colombia, Chile, Peru, and Ecuador, as a source of fuel. South Americans also have gradually developed their natural-gas reserves; hydroelectric plants produce most of the continent's electricity. Iron-ore deposits are plentiful in the Guiana and Brazilian highlands, and copper is abundant in the central Andes mountain region of Chile and Peru. Other important mineral resources include tin in Bolivia, manganese and gold in Brazil, and bauxite in Guyana and Suriname.
Subsistence farming is widespread, with about 30% of the people working about 15% of the land. Dense forests, steep slopes, and unfavorable climatic conditions, along with crude agricultural methods, limit the amount of cultivable land. Commercial agriculture, especially of the plantation type, fares better in terms of production because of the large scale and the opportunity to use modern, mechanized methods. Among the agricultural exports are coffee, bananas, sugarcane, tobacco, and grains. Meat is also an important export. In the interior, hunting and gathering of forest products are the chief economic activities of the indigenous peoples. Fishing is also a central industry. In the more accessible areas, forest products are removed for export.
Sections in this article:
More on South America Economy from Fact Monster:
See more Encyclopedia articles on: Oceans and Continents