Business

September 14, 2000

Conference emphasizes Latin American economic potential

Citing low inflation rates and high levels of international investment throughout South America, Cesar Gaviria, the Secretary General of the Organization of American States (OAS), convened the fourth annual Andean Development Corporation Conference on September 8.

With the expressed purpose of highlighting South America's economic potential, the Andean Development Corporation (ADC), together with the OAS and Inter-American Dialogue, hosted dignitaries, academics and professionals from throughout the Western Hemisphere at the Carnegie Endowment for International Peace.

Acting U.S. Asst. Secretary of State Peter Romero.

Peter Romero, acting U.S. Assistant Secretary of State for Western Hemisphere affairs, also addressed the day-long conference, which covered topics ranging from Colombia’s prospects for peace and economic recovery to hemispheric integration and free trade. In his remarks, Romero articulated four principal U.S. objectives.

He affirmed U.S. commitment to strengthening democracy, protecting human rights, and encouraging trade and development in Latin America. In addition, he underlined the U.S. goal of containing the spread of drug trafficking in the Andean region.

Romero also addressed the current status of each of the five Andean nations. Remarking that the region has experienced some major reversals in recent years, Romero spoke optimistically about Bolivia’s economic reforms, which have opened the domestic economy to foreign investment. However, he expressed concern about the political fragmentation that has led to the return of “exclusionary politics” in Venezuela, Ecuador and Peru. Candidly assessing the current situation in Colombia, Romero suggested that the nation’s beleaguered condition was due in part to flawed U.S. policies of past years.

Nevertheless, he recognized the current administration of Colombian President Andres Pastrana as a “positive force.”

Following Romero’s briefing, the conference’s economic focus resumed with discussions of regional economic forecasts, dollarization (pegging a local currency to the value of the U.S. dollar), and competitiveness. Joyce Chang of Chase Securities provided optimistic economic forecasts for Mexico, Brazil, Ecuador and Venezuela.

However, she was also quick to assert that political uncertainty continues to threaten investment in several Andean nations.

On another positive note, Ricardo Hausmann of the Kennedy School of Government at Harvard University applauded Ecuador’s dollarization plan, arguing that dollarization in Latin America has effectively curbed undue government influence in the marketplace.