Abraham Lowenthal, President Emeritus, Pacific Council on International Policy; Professor of International Relations, University of Southern California; Senior Fellow, Brookings Institution
On the "Latin America" panel, Carlos Bremer of Value Grupo Financiero argued that corporations must be concerned with socially responsible practices and economic openness. At right is Viviana Araneda, Chile's trade commissioner.
Does little news mean good news? Abraham Lowenthal of the University of Southern California argued that in the case of Latin America, this is true. Given the extensive challenges in other parts of the world, there has been little coverage of the region in the U.S. media.
The positive news is that there is a general move toward democracy and stability. But Lowenthal urged outside observers not to believe that Latin America is becoming homogeneous. He offered five "dimensions" in which Latin American countries differ from one another:
1. The nature and degree of economic and demographic interdependence with the United States (Mexico, the Caribbean and Central America have the highest, while the southern cone region has the lowest).
2. The extent to which countries have geared their economies to international competition (Chile has strongly pursued this).
3. The development of democratic governance, including accountability and rule of law (strongest in Chile and Brazil, and on the increase in Mexico).
4. The relative effectiveness of political and civic organizations besides the state (strongest in Chile, while deteriorating in Venezuela).
5. The integration of the region's more than 30 million disadvantaged indigenous peoples, who are becoming more self-aware and mobilized.
Carlos Bremer of Value Grupo Financiero argued that although there are some major challenges in the region, there are also many opportunities and reasons for optimism. He addressed the need for improving and expanding education to increase social equality and prosperity. Bremer criticized the leftist populism that is gaining traction in Mexico and throughout Latin America, and offered suggestions for the business community in Latin America. He argued that corporations must be concerned with socially responsible practices and economic openness to offer a better standard of living across the board. This would result in improved conditions for everyone in the region and the United States.
Pompeo Andreucci Neto of the Brazilian Embassy portrayed a rosy picture of Brazilian growth and stability. He stated that Brazil is interested in strengthening ties with other Latin American countries by supporting Mercosul, a regional trade agreement. Although there is concern about an economic slowdown in the United States, Brazil is optimistic about foreign direct investment, which increased dramatically in recent years. Inflation is under control, and a greater availability of credit has become very important, helping to fuel a sales boom in the country's housing market. He suggested that his country needs to reform its tax system and encourage innovation to solve its challenges.
Viviana Araneda, a trade commissioner for the Chilean government, gave the audience an overview of the successful economic growth and openness of her country. Chile has relatively low tariffs overall, while it grants most favored nation status to all. It has been ranked the eighth freest economy in the world, and number one in Latin America, with more than 50 free-trade agreements in force with countries around the world.
Finally, Ambassador John Veroneau argued that the U.S. Congress should pass the Colombia Free Trade Agreement. He criticized Congress and U.S. labor unions for their opposition to free trade, arguing that it contributes to economic growth and prosperity far more effectively than other options.
Global Conference 2013
Former Prime Minister Tony Blair, philanthropist Bill Gates and Strive Masiyiwa of Econet Wireless discuss advancing prosperity in Africa.
