Contributions from Carin Zissis
A proposal to create a South American defense alliance arose last week during a Brazil-Venezuela summit. As tensions between Ecuador and Colombia continue, Brazilian officials recommend a defense board to mediate in regional disputes.
With Brazil's economy holding steady in the face of worldwide financial worries, the country could play a leadership role on matters ranging from trade to economic policy. Yet concerns about a possible global downturn remain.
Experts say China's appetite for commodities helps insulate Latin America against the sluggish U.S. economy. Others point to ways the region can take advantage of the windfall through reforms and infrastructure development.