Alem Tedeneke, Media Manager, World Economic Forum; Tel.: +1 646 204 9191, +52 55 6608 7317; Email: ated@weforum.org
Riviera Maya, Mexico, 8 May 2015 – Some of Latin America’s countries may be on the verge of major changes, according to policy-makers, industry leaders and analysts at the 10th World Economic Forum on Latin America.
The October presidential election in Argentina, the parliamentary election expected later this year in Venezuela, and the April 2016 Communist Party Congress could all pave the way for a change in economic direction in these countries.
“With the October election, Argentina has a dramatic possibility for change,” Agustin Etchebarne, General Director, Fundación Libertad y Progreso, Argentina, said. Etchebarne said that his country’s recent cycle of populist policies has run its course, and whoever wins the election will stop following Venezuela’s economic model so closely. “The only question is how deep the changes will be,” he said.
Venezuela is supposed to hold parliamentary elections by the end of the year, and if the opposition unites, it can win, Luis Vicente Leon, President, Datanalisis, Venezuela, said. Opinion polls show that Venezuelans increasingly oppose government interference with private property, while President Maduro’s approval rating is under 30% and the economy is sliding ever more deeply into crisis. “I am absolutely certain that we will see important changes in our economic model,” Vicente Leon said.
In Cuba, the April 2016 party congress should see a new generation enter policy-making positions and start the process of succeeding President Raúl Castro. These political changes should accelerate the economic reforms that are already under way. “We are trying to have a more efficient economy while maintaining our special social characteristics,” Carlos Alzugaray Treto, Editor, Temas, Cuba said. “We are building a democracy,” he added.
Brazil is already changing course, based not on political change but economic pressure. The country had to reduce its fiscal imbalance or lose its investment grade rating. “We had to adjust, because if we didn’t, the cost would have been even greater,” said Jose Augusto Coelho Fernandes, Director of Policy and Strategy, Confederação Nacional da Industria (CNI), Brazil. Brazil now has many investment opportunities in infrastructure, where a solid regulatory framework is already in place, and its weaker currency is making exports more competitive.
Colombia faces armed conflict, but government negotiations with the FARC could lead not only to peace, but also to reforms. “The peace process is not an end in itself. It is an opportunity to accelerate the country’s transformation,” Oscar Adolfo Naranjo Trujillo, Minister of Post-Conflict, Human Rights and Security of Colombia, said. The two sides have already reached agreements on land reform, increased political participation for the FARC and other dissident groups, and put in place measures to fight illicit drugs. Naranjo Trujillo was optimistic that negotiations would succeed. “Colombians really want to put an end to this conflict,” he said.
More than 750 participants are taking part in the 10th World Economic Forum on Latin America in Riviera Maya, Mexico from 6 to 8 May 2015. The theme of the meeting is “Advancing through a Renovation Agenda”.
The Co-Chairs of the World Economic on Latin America are: Carlos Brito, Chief Executive Officer, Anheuser-Bush InBev, USA; Carlos Slim Domit, Chairman, América Movil, Mexico; Angelica Fuentes, President of Angelica Fuentes Foundation, Mexico; Eduardo Leite, Chairman of the Executive Committee, Baker & McKenzie, USA; Ignacio Sánchez-Galán, Chairman and Chief Executive Officer, Iberdrola, Spain; and Joseph E. Stiglitz, Professor, School of International and Public Affairs, Columbia University, USA.
Notes to Editors
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