Latin America and the Caribbean (LAC) gained an economic growth at a medium rate in 2008 which is obviously slower than that of to the previous years. The year of 2008 marks the end of a booming period which has very few precedents in the economic history of the region. Affected by global slowdown caused by the ongoing U.S. financial crisis, the regional economies began to face more and more uncertainties and might fall into another round of adjustment. It is expected that the economic growth of the region will decline remarkably in 2009.With more factors in favor of the political institution, LAC succeeded in 2008 in maintaining political stability. However, there still exist various potential risks of triggering political unrest. In most of the LAC countries, biparty or multiparty competitions were further strengthened. The leftwing governments consolidated their power, while still facing a series of deeplyrooted problems. The worsening economic situation means that the regional governments will have rising political risks in 2009. Thanks to the economic growth in 2008, the social indicators in LAC kept on improving, although at a slower rate. Social tensions were moderated to a certain degree, but there still lacked social stability in the region. In 2009 unemployment and poverty will be the top priority for the regional countries to deal with. The United States continued to maintain its dominant position in the Western Hemisphere, while had a waning influence over LAC. The intraregional unity and cooperation within LAC were developed, but they were heavily restricted by a variety of intrinsic problems. Russia rose to be a major alternative for the regional leftwing governments, so as to counterbalance the influence of the United States. The EU. sought to enhance the ties with the emerging powers in the region. In addition, the LACAsia Pacific relations were deepened by achieving a number of bilateral or multilateral agreements. Latin America and the Caribbean (LAC) gained an economic growth at a medium rate in 2008 which is obviously slower than that of to the previous years. The year of 2008 marks the end of a booming period which has very few precedents in the economic history of the region. Affected by global slowdown caused by the ongoing US financial crisis, the regional economies began to face more and more uncertainties and might fall into another round of adjustment. It is expected that the economic growth of the region will decrease remarkably in 2009 .With more factors in favor of the political institution, LAC succeeded in 2008 in maintaining political stability. However, there still exist various potential risks of triggering political unrest. In most of the LAC countries, bi -party or multiparty competitions were further strengthened. The leftwingisms consolidated consolidated power, while still facing a series of deeplyrooted problems. The worsening economic situation that the the regiona l governments will have rising political risks in 2009. Thanks to the economic growth in 2008, the social indicators in LAC kept on improving, although at a slower rate. Social tensions were moderated to a certain degree, but there still lacked social stability in the In 2009 unemployment and poverty will be the top priority for the regional countries to deal with. The United States continued to maintain its dominant position in the Western Hemisphere, while had a waning influence over LAC. The intra-regional unity and cooperation within LAC were developed, but they were heavily restricted by a variety of intrinsic problems. Russia rose to be a major alternative for the regional leftwing governments, so as to counterbalance the influence of the United States. The E  U. Sought to enhance the ties with the emerging powers in the region. In addition, the LAC -Asia Pacific relations were deepened by achieving a number of bilateral or multilateral agreements.