It's the other way around.
Brazil and Argentina especially should be rich, what's lacking is coherent social organization from top to bottom. Obviously it matters more at the top, but it has to be borne by regular people as well.
Same could be said of other Central/South American nations, but geographic factors and natural resources do give a material advantage that can be leveraged into a lot.
Consider that Canada, unlike most other so called 'advanced nations' - does not actually have lot of advanced industry. Research, yes, but 'applied' - no. And yet, because it has a 'free export card' with natural resources, it can import the equipment and materials necessary to support the rest of the regular domestic economy, which benefits from ultra boring politics, 'functional' bureaucracy, low levels of corruption.
Innovations can only be leveraged by organizations that have the coherent ability to make use if them.
The 'low hanging fruit' in Brazil is governance, though I hope this Wheat helps.