This situation influenced populists in Venezuela, Bolivia, and Ecuador, which diminished their power in the region. Chavez' constitutional reform proposition was rejected by referendum, showing that the citizens of Venezuela desire a market-based democracy. In such conditions, it is only a matter of time until this democracy will be installed in the region.

The GDP in South America is expected to continue its ascending direction, reaching a 4.3% growth rate this year (Latin Business Chronicle, 2008). Inflation is expected to remain relatively constant in the next period of time. In certain regions in South America inflation is expected to decrease.

Given the conditions mentioned above, it is clear that South America will develop into investors' favorite destinations. The most important advantages of the region consist in: political stability in most regions, economic stability, government policies, and economic growth.

However, investors should think very carefully how much they are willing to...
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