Latin America’s transformation over the past quarter century has been extraordinary. Today, the region lays claim to strong, vibrant democracies, well-managed economies, deeper capital markets and a more equitable distribution of wealth.
THE FUTURE OF LATIN FINANCE
Political, financial and corporate leaders set out an agenda for Latin America’s future as the region confronts a turning economic cycle
Yet for all its progress Latin America has advanced little compared to the rest of the world. For example, its share of global GDP, at just 8.3%, has barely advanced since 1950. For the region’s economies to converge with emerging Asia, let along developed markets, there is much to be done.
Over the coming pages, leaders from Latin America and beyond reflect on the challenges and how to tackle them, as well as what lessons should be drawn from the past quarter century.
In Governance & Reform, political leaders past and present, including Mexico’s president Enrique Peña Nieto and Brazil’s former president F. H. Cardoso, advance the case for a new economic agenda for Latin America.
Bankers and regulators, including former Citigroup vice chairman William Rhodes and Mexican central bank governor Agustín Carstens, consider how to bolster the financial system in Stability & Regulation. The heads of some of the region’s biggest banks and companies, assess the environment for firms operating in the region, while investors take stock of how far markets have advanced in Corporates & Capital.
And in Growth & Development, former Chilean president Ricardo Lagos and IDB president Luis Alberto Moreno, among others, examine challenges of prosperity.
Governance & Reform
Political figures past and present weigh the case for a new economic agenda for Latin America
Enrique Peña Nieto — Writing exclusively for LatinFinance, Mexico's presdient sets out his agenda for reform, which he says will transform the economy by boosting productivity
Fernando Henrique Cardoso — Brazil must not lose sight of the fundamental weaknesses in its economy, its former president warns
Álvaro Uribe — Colombia's former president says the government's peace talks with insurgents have come at the expense of both security and investment
Henrique Capriles — Venezuela must find a better way for economics and politics to work togheter, the country's opposition leader says.
Nicholas Brady — The relationship between the US and Latin America will once again take center stage for the region as the global economy turns, the former US Treasury Secretary says
Stability & Regulation
Bankers and regulators reflect on the readiness of Latin America’s financial system to face future shocks
Agustín Carstens — The global financial crisis served as a reminder that sound economic fundamentals are always the best defense of any economy, Mexico’s central bank governor argues
Guillermo Ortiz — The process of adjustment to higher global interest rates is always disruptive, says the chairman of Grupo Financiero Banorte
William Rhodes — Rising US interest rates and slowing demand for commodities need not be disastrous for Latin America, says the former Citigroup senior vice-chairman
Lee Buchheit — Latin America must not forget the lessons of sovereign debt restructuring learned the hard way, says the veteran of such negotiations
Henrique Meirelles — Financial market turmoil is not on the horizon, says Brazil’s former central bank governor
Ruth Krivoy — Venezuela must step up its efforts to attract private investment or face a loss of competitiveness, its former central bank head says
Martín Redrado —In the absence of reforms, strong soy prices will be crucial for Argentina’s economy, says its former head of the central bank
Guillermo Calvo — The risks of a ‘sudden stop’ in capital flows to Latin America are on the rise, the economist writes
Corporates & Capital
Global investors and corporate leaders consider the prospects for capital markets, banking and industry in Latin America
Mohamed el Erian — Markets must brace for years of volatility ahead, says Pimco’s CEO. But the investment case for emerging markets remains intact
Arminio Fraga — Brazil’s much-vaunted consumer boom has come to an end, says the head of Gávea investimentos
Jorge Errázuriz —Local capital markets have advanced enormously. Now market integration is necessary, says the founder of Celfin Capital
Views From the Market — Featuring Joyce Chang, Richard Frank, Hari Hariharan, Hans Humes, Will landers, Mark Mobius and Martin Schubert
Roberto Setúbal — Conservatism will continue to serve Latin America’s banking sector well, says Itaú-Unibanco’s CEO
David Bojanini — Increasing banking penetration in Latin America requires innovating beyond traditional lending methods, says the CEO of Grupo Sura
Emilio Botín — As a main driver of growth for Banco Santander, Latin America is not about to diminish in importance for the bank, says its chairman
Carlos García Moreno — Despite huge advances for Latin America’s capital markets, issuers must proceed with caution as the outlook darkens, says América Móvil’s CFO
Roger Agnelli — Mining revenues will continue to buoy Latin America over the long term, says the former Vale CEO
Nouriel Roubini — Despite some bright spots, the bad outweighs the good in Latin America’s investment landscape, says the chairman of Roubini Global Economics
Growth & Development
Ricardo Lagos — New policies and institutions are needed to accommodate Latin America’s expanding middle class, says Chile’s former president
Enrique García— Infrastructure investment must double for Latin America to keep up with demand, writes the president of the CAF
Luis Alberto Moreno — Technology and education need upgrading for Latin America to improve productivity and competitiveness, says the IDB president
Enrique Iglesias — Latin America must tackle structural reforms to keep growing fast, writes the Ibero-American Secretary General
Compton Bourne — Finding export niches could help the Caribbean’s economies grow sustainably, says the former head of the Caribbean Development Bank
Claudio Loser — Only a determined reform effort will allow Latin America to catch up to the developed world over the next quarter century, the president of Centennial Group Latin America says
Latin America will not escape global market volatility in the coming years, says Pimco chief executive Mohamed El Erian
Mexico has an historic opportunity to push through reforms that will make it more productive and prosperous, says its president
Globalization and demographic shifts are forcing Latin lenders to innovate, says Grupo Sura CEO David Bojanini
Hard-won security improvements in Colombia are at risk of being undone, says former president Álvaro Uribe
The events that mark Latin America's transformation from the world's most turbulent region to one of its brightest prospects