Policies needed to meet globalisation - SELA - Article 7 St Vincent Herald, Sat 26 May 2001
PORT OF SPAIN, Trinidad - The experience of the countries of Latin America and the Caribbean in an increasingly globalised world during the last decade has revealed the need for active policies for insertion in the world economy, according to a Caracas-based organisation, SELA.
It said in a paper that passive attitudes towards the changing situation will fail to take full advantage of the opportunities offered by technological progress and the intensification of international economic inter-relations.
This will moreover increase the region's vulnerability to the external fluctuations and effects that are inherent to the globalisation process, the study noted. "The economic stability attained by most of the region's countries during the nineties is at serious risk if they do not follow-up with insertion policies that have clearly defined objectives and instruments and are also compatible with national policies," according to SELA. "The strategy of unilaterally opening up the economy and applying the rules of the market, which has been the predominant strategy pursued during the past few years, is beginning to show its limitations regarding economic stability itself as well as regarding its ability to boost economic growth prospects. "It has moreover been notably inadequate at tackling social problems and promoting equity, which are objectives that are being pursued by all the countries of the region," the report said.
SELA said what is now needed is a more active approach to tackle the problems those policies have been unable to resolve.
It suggested that the international community would have to take some concerted action to ensure that international economic relations allow the positive aspects of globalisation to be taken advantage of and minimise its negative effects. "For such action to be effective, there must be at least a glimpse of the solution to the problems of the various actors in the international economy and these will have to be taken into consideration. "It is particularly important that the asymmetries among the various national economies and subregional groups are recognised and that the specific problems of the emerging or intermediately developed economies, as well as the economically relatively less developed countries, are tackled."
It said each country must begin to view their development programmes as well as their economic adjustment and stabilisation programmes as their own.
For this to happen, developing countries must participate extensively in the design of international norms and mechanisms which means they must have a greater presence in international decision-making processes. "In order to obtain the best possible insertion in the world economy, the countries of Latin America and the Caribbean must make an effort to come up with concerted policies and to co-ordinate their positions at international economic forums. "The possibilities of individual countries, especially the smaller and intermediate economies, influencing how the trends stemming from globalisation will be channelled are minimal. "It is therefore essential to join forces and present shared standpoints to the international community," the paper said adding that the formation of regional blocks and any progress made in regional integration could lend credibility to such joint positions.
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