In the financial aspect, Latin American countries are in a very vulnerable position due to the volatility of financial capital, the uncertainty in their markets, the inability of international financial organizations to face crises, much less to foresee them, the absence of mechanisms effective in controlling the extreme mobility of capital flows and the pressures for debt service payment.
Regarding capital mobility, the TOBIN tax is proposed, which is a tax that is caused by a currency exchange action. For example, if you are going to withdraw a million dollars and the tax is calculated at 0.01%, the tax would be 100 dollars. The proceeds are said to be used for humanitarian purposes and to combat poverty. According to the IMF, 1.9 trillion dollars move daily, with the same rate as the previous example, the collection for this tax would be 190 million dollars. Obviously, if implemented, the collection would be less due to the decrease in transactions, but still thus the daily collection would continue being a considerable sum.
On the other hand, the countries of the region depend highly on external capital flows, so they must create mechanisms so that these capitals go to the productive sector and not to the stock markets that end up appreciating the currency, which together with the high rates of interest end up affecting the country's competitiveness and hitting national production.
Regarding trade, the channels of external impact are very varied, while the power to maneuver before such impacts depends on the level of development of the country.
There are opinions in favor of redesigning trade and financial policies, reducing dependence on foreign capital and formulating monetary and fiscal policies according to the needs of each nation. In addition, it is necessary to try to change the financing by issuance of bonds since they represent a market highly influenced by country risk and in which crisis contagion is facilitated; It was emphasized by the development of a local market for long-term public debt.
The fact that many are doing it does not mean that it is being done well; To give an example, how long have we not lasted with the old computer keyboard design coming from the typewriter keyboard, which is poorly done by injuring the wrists due to the bad position they adopt, only until now it is changing; So, if the keyboard design could be changed, why would it not be possible to redesign the commercial, financial, fiscal and monetary policies that, according to the vast majority of authors, the gap between developing and developed countries is increasing, this being a much more significant fact?
Regarding external debt, the inability of the countries of the region to make the debt sustainable in the long term is evident, mainly due to external factors such as interest rates, exchange rates, terms of trade, etc. The creation of a «Debtors Club» is proposed to be able to deal with the issue associated in a group and avoid the case-by-case treatment that has been taking place up to now and thus avoid that the debt becomes an instrument to ensure the insertion of developing countries to the world economy in neoliberal conditions. As well as the creation of a Latin American forum on foreign debt in order to raise awareness among citizens and promote their participation.
It is important to highlight the need to invest in infrastructure, technology and human resources to increase the competitiveness of the region. Likewise, an atmosphere of trust must be created, since we see protests, stoppages, strikes, road blockades and an endless number of situations that harm the normal course of their actions on the news broadcasts of the different countries. All of this is nothing more than widespread nonconformity due to a flawed social system. So we must also review social policies as well as corruption (an important factor in many of our countries, if not all) so that these policies are effective, bearing in mind that growth will be more sustainable if better distribution is made. This way, development will be less tortuous.
There is consensus on the reflection that the weakest countries cannot seek their advantages in the integration processes by compressing wages, tax burdens and social expenses, nor base their specialization on the intensive use of natural resources and labor. cheap, due to the perverse effects they generate, as these strategies do not ensure long-term growth and well-being.
There is also talk about the disadvantages of integrating between unequal countries, which ends up favoring transnational companies, but unemployment, social inequality and poverty increase in less favored countries. Therefore, the integration in the Latin American region with more balanced countries is suggested first in order to adapt companies to production on a larger scale, to be competitive and to specialize, on the other hand, a better position would be obtained for the FTAA negotiations if They are done en bloc if they were done separately, which would end up subordinating the region to the requirements of the United States or NAFTA.
It is proposed to create new entities from the integrated countries to manage certain projects assigned by the countries as a whole. Something similar to what the European Economic Community did with coal and steel, or nuclear research in the early 1950s, when countries gave up part of their sovereignty to put that activity at the service of all, administered as a common property, due to its strategic importance for the group economy.
But to think about regional integration, one must think of certain minimum rules to comply with in order to create an area in which intraregional trade is energized and local companies are prepared for the world economy, in order to avoid situations such as the one that occurred in MERCOSUR with Argentina due to the devaluation of the Brazilian real. In other words, the existing asymmetries must be studied in depth in order to take special measures and treatment for unfavorable conditions in the countries and to tend towards convergence in terms of macroeconomic policies. In addition, creating new infrastructure and adapting the existing one to increase intraregional trade and thus not hinder its growth dynamics.
All countries in the region are also advised to diversify their external relations to correct their concentration with the United States that occurs in most countries in the region. In addition, trying to correct the trade imbalances that exist with both the United States and the European Union by increasing the added value of exported products in some way.
We must take into account the great importance that genetic heritage is taking on in the world economy. This is a point of great care, especially the countries that enjoy having part of the Amazon jungle on their territory, a great source of this resource and thinking about its proper use (hopefully through a supranational body that can look after the interests of these countries) so that we do not become simple exporters of raw materials, as is generally the case with the region's natural resources, and sell us modified resources to create superior varieties at high prices. You have to create advantages in terms of real competitiveness and not just rely on comparative advantages.
In addition, Latin American countries have to ensure an international law for GMOs (Genetically Modified Organisms), in order to properly manage the challenges that this implies given their limited scientific capacity, which generates recurring problems when inspecting products in the border and assess for themselves the risks and benefits involved.
Bibliography
"Globalization and Development". A. Signed. Ruiz F. 1999.
"Trade, another unknown dimension of GMOs" Simonetta Zarrilli. 2000.
"The following are all papers that met at the III International Meeting of Economists on Globalization and Development Problems" held in Havana, Cuba, between January 29 and February 2, 2001.
"Alternative macroeconomic policies against economic instability and for sustained growth". Arturo Huerta G.
"Or imposto de Tobin (IT): Viavilidade Técnica e using cocoa as support for or financing of the new process of international cooperation". Leonardo Fernando Cruz.
"Latin American development banking in a global world". Rommel Acevedo.
"The challenges of a partnership between unequal partners". Paul Lowenthal.
«Globalization, Integration and Neoliberalism. Prospects for Latin America ». Arturo Perales and Francisco Dávila.
«The risks for developing countries of adhering to a North-South Free Trade Agreement. The case of Mexico ». Odile Cartel.
«Generate sovereignty. The growth of national sovereignties ». Alfredo Calcagno and Eric Calcagno.
