Nikkei Asia
Latin America is becoming a “part of the solution to the global needs for the first time,” Inter-American Development Bank President Ilan Goldfajn told Nikkei, as he sees opportunities for the region to work with the U.S., Japan and other partners on challenges like food security and climate change.
With 48 members in and beyond Latin America, the IDB is one of the multilateral development banks along with the World Bank and the Asian Development Bank. Goldfajn visited Japan recently to sign an agreement with the Japan International Cooperation Agency (JICA) to increase the co-financing ceiling.
The IDB also agreed to collaborate with Japanese technology company NEC on new initiatives for developing digital infrastructure in Latin America.
Such efforts come as Latin America grows more important for the global economy.
Goldfajn said Latin America is responsible for 40% of the food traded worldwide, as well as two-thirds of lithium output. The region is also increasingly critical in combating climate change, he argued, when it comes to production of clean energy and benefits of preserving the Amazon rainforest.
Brazil hosts the Group of 20 summit this year, while Peru hosts the Asia-Pacific Economic Cooperation (APEC) forum.
Larger countries like Mexico and Brazil could see their growth rate recover to around 3%, Goldfajn said.
Goldfajn wants the IDB to “contribute to less polarization and less fragmentation” in the international community from the standpoint of the Global South. The IDB is “finding bridges” between the Global North and South and building consensus among multilateral development banks, he said.
The IDB is due to release its macroeconomic outlook for Latin America during the annual meeting in March. Goldfajn said the trajectory shows “growth above the average” for the region.
In particular, Goldfajn thinks Mexico will perform well due to its proximity to the strong U.S. economy. He also said Brazil is expected to benefit from rising global demand for food and energy.
In Argentina, Javier Milei took office as president in December. The right-wing leader during his campaign pushed to abolish the central bank and dollarize Argentina, stoking concerns that the country could face economic turmoil during his tenure.
But Goldfajn said no major change has taken place so far, and that Argentina’s central bank and currency remain in place for now.
Argentina targets a primary surplus of 2% of gross domestic product, improving on the current deficit of 3%.
The IDB can help to “have this fiscal change in the most efficient way,” Goldfajn said. “We can help them find how we reduce spending and increase revenues in the best way to protect the most vulnerable.”
Link da publicação: https://asia.nikkei.com/Editor-s-Picks/Interview/Latin-America-ready-to-help-solve-global-crises-IDB-chief-says
As opiniões aqui expressas são do autor e não refletem necessariamente as do CDPP, tampouco as dos demais associados.
