São Paulo – The international financial crisis opens a window for Latin America and, in a special way, to Brazil. The statement was made yesterday (8th) by the director of the World Economic Forum (WEF) for Latin America, Lozoya Austin. With around 500 government, university and business representatives from 35 countries should discuss exits to the crisis and business opportunities during the meeting to take in Rio de Janeiro, from April 14th to 16th, and should count on the presence of Brazilian president Luiz Inácio Lula da Silva.
Austin stated that many factors are going to determine whether Brazil should leave the crisis stronger. "Brazil is in a better situation than it has been in recent decades to face the crisis," he said. To him, the stability and the strengthening of the economy are an opportunity for growth of Brazilian companies within and without the country.
To the president of the Brazilian Export and Investment Promotion Agency (Apex-Brasil), Alessandro Teixeira, Brazil may emerge from the international crisis with a stronger posture. "Politically better qualified. A new world economic structure cannot be developed without Brazil. This is the first real and political gain of including Brazil in this scenery," he said.
In the economic area, Teixeira said that Brazil has chances to leave the crisis stronger to gain new international markets faster. This is due, partly, to the Brazilian credit structure, to the public banking and financial system, as well as macro-economic and fiscal policies implemented by the government.
"I think Brazil has really done its homework," said Teixeira. He said that president Lula started his term in office with less than 30% of the population in the middle class, and that this percentage has already reached almost 50%. "This inclusion and the construction of this consumer market is fundamental for the minimizing of the effects of the crisis on Brazil and, mainly, for foreign recovery," he said.
Latin America
According to the WEF director, the meeting is taking place at an important moment for Latin America, a moment of great growth on the domestic market. "In general, Latin America has a young population and is interesting for companies due to its growing consumer standard, with relatively easy credit and infrastructure," he said.
Apart from seeking solutions to the economic crisis, the participants are going to focus on other implications of the problem, like poverty and the unsustainable development of the region, according to the Latin America manager at the Forum, Arturo Franco. According to him, due to the economic scenery, with dismissals, for example, the region runs the risk of moving backwards in important areas.
"There are concerns with 13 million people that, according to the Inter-American Development Bank (IDB), fall to poverty. They are people who managed to escape extreme poverty over the last six years and we are going to work so that they don’t go back," explained Franco.
During the event, debates are scheduled to take place with Frei Betto (a representative of the fight for human rights) and former president Fernando Henrique Cardoso, who should speak about the fight against drugs, alongside former Colombian president César Gaviria. Another theme to be highlighted is the environment.
The Apex president pointed out that countries like Colombia, Peru, Chile and Mexico also present good conditions to overcome the crisis. According to Teixeira, despite social inequality – a problem that deserves special attention due to the crisis -, Latin America is one of the most profitable regions of the world. "It is hard to find a multinational company installed in that region of the world that is not investing more than it is turning to other regions of the world," he pointed out.
The WEF precedes the 5th Summit of the Americas, which should include heads of state from the region, scheduled to take place in Trinidad Tobago, between April 17th and 19th. Expectations are for the conclusions of the event in Brazil to be taken to the meeting.
*Translated by Mark Ament
