LATIN AMERICA: Region no better off now, says World Bank By Henry Tricks in Cancún
James Wolfensohn, president of the World Bank, on Thursday painted a grim picture of poverty in Latin America, saying the region was no better off than it was more than two decades ago despite far-reaching economic reforms.
His remarks were a dose of cold water in an otherwise upbeat meeting of finance ministers from Latin America, the US and Canada, where Michel Camdessus, managing director of the International Monetary Fund, reaffirmed the belief that Latin America's economies would grow a boisterous 4 per cent this year.
"We are no better off than we were in the 70s," Mr Wolfensohn said, noting that the gap between rich and poor in Latin America was the worst in the world, that 80 per cent of the region's 30m indigenous people lived in poverty and that 40m more people lived below the poverty line now than 20 years ago.
He urged Latin Americans to address the issue by enlisting the support of the Catholic Church, non-governmental organisations and trade unions, warning that social instability could kill long-term growth.
The recent bloodless coup in Ecuador, he said, might reflect that threat. "What happened in Ecuador was an expression by a group of (indigenous people) that they were upset."
Mr Wolfensohn also expressed sympathy for those left behind by globalisation, saying that the protests in Seattle that disrupted last year's meeting of the World Trade Organisation were not just the work of a "group of radicals" and reflected some "very legitimate" views.
His message contrasted sharply with recent remarks by his host, President Ernesto Zedillo of Mexico, who lambasted international NGOs at the World Economic Forum in Davos, Switzerland, for "global-phobia".
"There's a lot of fear everywhere about how this new globalised community is going to work out," Mr Wolfensohn said.
His emphasis on the importance of fighting poverty was broadly echoed by Mr Camdessus, though the IMF boss used one of his final meetings with top Latin American officials before his departure this month to praise the economic reforms that have helped transform Latin America since the 1980s.
He predicted the region was entering the most delicate phase of reform, and pressed its rulers to combat powerful interest groups in order to bolster tax collection, strengthen banking systems and reduce poverty by spurring long periods of economic growth.
He said the IMF had more than $35bn committed to Latin America.