South America
South America occupies the major southern portion of the landmass generally referred to as the New World, the Western Hemisphere, the Americas, or simply America (which is sometimes considered a single continent and South America a subcontinent). The continent is generally delimited on the northwest by the Darién watershed along the Colombia-Panama border, or (according to some sources) by the Panama Canal which transects the Isthmus of Panama. Geopolitically and geographically all of Panama – including the segment east of the Panama Canal in the isthmus – is typically included in North America alone and among the countries of Central America. Almost all of mainland South America sits on the South American Plate.
Many of the islands of the Caribbean (or West Indies) – e.g., the Leeward and Lesser Antilles – sit atop the Caribbean Plate, a tectonic plate with a diffuse topography. The islands of Aruba, Barbados, Trinidad, and Tobago sit on the northerly South American continental shelf. The Netherlands Antilles and the federal dependencies of Venezuela lie along the northerly South American shelf. Geopolitically, the island states and overseas territories of the Caribbean are generally grouped as a part or subregion of North America. The South American nations that border the Caribbean Sea — including Colombia, Venezuela, Guyana, Suriname, and French Guiana — are also known as Caribbean South America. Other islands are the Galápagos islands that belong to Ecuador and Easter Island (in Oceania but belongs to Chile), Robinson Crusoe Island, Chiloé, and the Tierra del Fuego.
South America is home to the world's highest waterfall, Angel Falls in Venezuela; the largest river (by volume), the Amazon River; the longest mountain range, the Andes (whose highest mountain is Aconcagua at 6,962 m (22,841 ft)); the driest place on earth, the Atacama Desert; the largest rainforest, the Amazon Rainforest; the highest capital city, La Paz, Bolivia; the highest commercially navigable lake in the world, Lake Titicaca; and, excluding research stations in Antarctica, the world's southernmost permanently inhabited community, Puerto Toro, Chile.
South America's major mineral resources are gold, silver, copper, iron ore, tin, and petroleum. The many resources of South America have brought high income to its countries especially in times of war or of rapid economic growth by industrialized countries elsewhere. However, the concentration in producing one major export commodity often has hindered the development of diversified economies. The fluctuation in the price of commodities in the international markets has led historically to major highs and lows in the economies of South American states, often causing extreme political instability. This is leading to efforts to diversify production to drive away from staying as economies dedicated to one major export.
Pre-Columbian civilizations
The rise of agriculture and the subsequent appearance of permanent human settlements allowed for the multiple and overlapping beginnings of civilizations in South America.
The earliest known settlements, and culture in South America and the Americas altogether, are the Valdivia on the southeast coast of Ecuador.
The earliest known South American civilization was at Norte Chico, on the central Peruvian coast. Though a pre-ceramic culture, the monumental architecture of Norte Chico is contemporaneous with the pyramids of Ancient Egypt. The Chavín established a trade network and developed agriculture by 900 BC, according to some estimates and archaeological finds. Artifacts were found at a site called Chavín de Huantar in modern Peru at an elevation of 3,177 meters. Chavín civilization spanned 900 BC to 300 BC.
The Muisca were the main indigenous civilization in what is now modern Colombia. They established a confederation of many clans, or cacicazgos, that had a free trade network among themselves. They were goldsmiths and farmers.
Economy
Because of histories of high inflation in nearly all South American countries, interest rates remain high and investment remains low. Interest rates are usually twice that of the United States. For example, interest-rates are about 22% in Venezuela and 23% in Suriname. The exception is Chile, which has been implementing free market economic policies since establishing military dictatorship in 1973 and has been increasing its social spending since the return of democratic rule in the early 1990s. This has led to economic stability and interest rates in the low single digits.
