MercoPress. South Atlantic News Agency
Fight instability with integration
Latinamerica's international financial markets vulnerability can be corrected by strengthening integration efforts, indicated Enrique Iglesias, president of the Interamerican Development Bank, IDB.
During the inauguration of IDB's 42nd. General Assembly in Santiago de Chile, Mr. Iglesias said it was essential to agree on a regional "collective action agenda" to combat those areas most vulnerable, poverty, competitiveness, external weakness, open government and environment.
"External vulnerability originates in the region's modest savings ratio, consolidated public sector balanced fiscal fragility and deficiencies in financial regulation and supervision", underlined Mr. Iglesias.
Mr. Iglesias invited Latinamerica to expand its horizon, and seek trade agreements with Europe and Asia, similar to that currently under discussion which englobes the three Americas.
"Prospects for an all Americas Free Trade Association by 2005, are promising", emphasised IDB's president. The annual IDB report indicates that in 2000 Latinamerican economies grew an average 4,2%, a strong recovery from 1999, but still far from the 6% needed to consolidate a long term stable growth that helps advance social progress and combat poverty.
Further on, and in direct reference to the constant demonstrations in downtown Santiago protesting against globalization and the three days IDB general assembly, Mr. Iglesias said that "those who protest against the costs of adjusting to world conditions, frequently ignore the higher costs of not adjusting".
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