South America’s economy is deeply tied to its natural resource base — fertile soils, abundant rivers, dense forests, and vast mineral reserves.

---

🌾 10.1 Agriculture

🔹 Major Crops

• Coffee: Brazil (world’s largest producer), Colombia.
• Soybeans: Brazil, Argentina (major global exporters).
• Sugarcane: Brazil (basis for biofuel/ethanol).
• Wheat & Maize: Pampas of Argentina, Uruguay.
• Rice & Cotton: Brazil, Peru, Guyana.
• Cocoa: Ecuador.
• Bananas: Ecuador (among top exporters globally).

🔹 Grassland Farming

• Pampas: Mechanized wheat & maize, beef (Argentina).
• Campos: Soy & sugarcane (Brazil).
• Llanos: Seasonal grazing (Venezuela, Colombia).

🔹 Horticulture

• Grapes (Chile → wine industry).
• Oranges (Brazil → juice exports).

---

⛏️ 10.2 Mineral Resources

• Copper: Chile (largest producer), Peru.
• Iron Ore: Brazil (Minas Gerais).
• Lithium: “Lithium Triangle” (Argentina, Bolivia, Chile) → 60% of global reserves (key for EV batteries).
• Oil & Gas: Venezuela (largest reserves in world), Brazil (offshore), Ecuador, Colombia.
• Gold: Peru, Guyana, Suriname.
• Bauxite: Guyana, Suriname.
• Silver & Tin: Bolivia, Peru.

---

⚡ 10.3 Energy Resources

Hydropower

• South America is highly dependent on hydroelectricity.
• Itaipu Dam (Brazil–Paraguay): One of the largest in the world.
• Guri Dam (Venezuela): Major hydro project.
• Hydropower provides 60–70% of electricity in many countries.

Oil & Gas

• Venezuela → OPEC founding member, oil-dependent economy.
• Brazil → Offshore oil fields.
• Bolivia → Natural gas exports to Brazil & Argentina.

Biofuels

• Brazil → Pioneer in ethanol fuel (from sugarcane).

---

🌳 10.4 Forest Resources

• Amazon Rainforest: Timber, medicinal plants, biodiversity.
• Deforestation Issues: Logging, cattle ranching, soy expansion.
• Global Importance: Carbon sink, biodiversity hotspot.

---

🏭 10.5 Industries

• Brazil: Cars, aircraft (Embraer), steel, textiles, IT.
• Argentina: Food processing, steel, automobiles.
• Chile & Peru: Mining, copper smelting.
• Colombia: Coffee, textiles, oil.

---

🚢 10.6 Trade

• Exports: Coffee, soybeans, beef, copper, oil, iron ore, wine.
• Imports: Machinery, electronics, chemicals.
• Trade Partners: USA, China, European Union, India.
• Trade Blocs:
  • MERCOSUR: Argentina, Brazil, Paraguay, Uruguay (customs union).
  • Andean Community: Bolivia, Colombia, Ecuador, Peru.

---

🧑‍🤝‍🧑 10.7 Services Sector

• Tourism → Machu Picchu (Peru), Rio Carnival (Brazil), Iguazu Falls (Argentina–Brazil), Galápagos Islands (Ecuador).
• Financial services growing in Brazil, Chile.
• IT & outsourcing industry emerging in Argentina, Colombia.

---

📌 UPSC Key Pointers

1. Brazil → largest coffee, sugarcane, orange producer; ethanol fuel pioneer.
2. Argentina Pampas → wheat, maize, beef exports.
3. Chile → world’s top copper producer.
4. Lithium Triangle (Argentina–Bolivia–Chile) → 60% of world’s lithium.
5. Venezuela → largest oil reserves, OPEC founding member.
6. Itaipu Dam (Brazil–Paraguay) → largest hydropower projects.
7. Deforestation in Amazon → major global climate issue.
8. MERCOSUR → key South American trade bloc.