the role of the financial sector in mitigating the global crisis in latin america
DESCRIPTION
Alma Balcázar, Coordinadora del Área de Sector Privado de Transparencia por Colombia, fue invitada a participar en la Conferencia “Más allá de la crisis mundial: la transparencia, un imperativo” con la ponencia titulada “Crisis Financiera Mundial: El papel del sector financiero para mitigar la crisis en América Latina”; la cual se realizó en Berlín el 17 de octubre de 2009. Durante su intervención, Alma Balcázar abordó los efectos de la crisis mundial en Latinoamérica, los bajos niveles de confianza en el sector privado y la corresponsabilidad de las instituciones y del sector financiero en la construcción de integridad.TRANSCRIPT
THE ROLE OF THE FINANCIAL SECTOR IN MITIGATING THE GLOBAL
CRISIS IN LATIN AMERICA.
Berlin (Germany), October 2009
CONTENT
1. The crisis in Latin America
2. Confidence in the Private Sector
3. Institutions and Integrity as possible victims of the crisis.
4. Shared Responsibility of the Financial Sector in the construction of Integrity in Latin America
THE ROLE OF THE FINANCIAL SECTOR IN MITIGATING THE
GLOBAL CRISIS IN LATIN AMERICA.
1. THE CRISIS IN LATIN AMERICA
Poverty is increasing (2009)
Unemployment(Agosto 2009)
Restrictive financial conditions
Decreasing external demand and remittances
Fall in commodity prices
� 33% of Latin American are
poor. (182 million people)
� 6 million Latin American will
become poor.
Source: Interamerican Development
Bank
2007 2008 2009
PIB
4.6% 4.6%
1.1%
GDP is
decreasing
GDP
2. CONFIDENCE ON THE PRIVATE SECTOR
HOW MUCH CONFIDENCE DO YOU HAVE ON THE PRIVATE
SECTOR? (%)
90
80
70
60
50
40
30
20
10
0
2001 2002 2005 2006 2007 2008
3632
3842 41 41
Source: Latinobarómetro 2008
56
56
50
49
48
46
43
41
37
36
36
36
35
35
32
31
30
30
41
Paraguay
Rep. Dominicana
Venezuela
Uruguay
Colombia
Brasil
Costa Rica
El Salvador
Panama
Ecuador
Chile
Peru
Mexico
Bolivia
Argentina
Guatemala
Nicaragua
Honduras
Latinoamérica
2. CONFIDENCE ON THE FINANCIAL SECTOR
90
80
70
60
50
40
30
20
10
0
29
41 3944
2003 2004 2005 2008
Source: Latinobarómetro 2008
HOW MUCH CONFIDENCE DO YOU HAVE ON THE
BANKS? (%)60
0
10
20
30
40
50
70
80
90
59 55 52 50 49 48 47 46 43 42 38 37 3531
25
44
60
100
48
38
THE MOST PROBLEMATIC FACTORS FOR
DOING BUSINESS
Source: “The Global Competitiveness Report 2009-2010. World Economic
Forum.
Inefficient government bureaucracy
Acces to financing
CORRUPTION
Restrictive labor regulation
Policy Instability
Inadequate Supply of Infrastructure
Tax regulations
Inadequately educated workforce
Tax rates
Crime and theft
Inflation
Poor work ethic in national labor force
Foreign currency regulations
Government instability / Coups
Poor public health
VICTIMS OF THE CRISIS
SHARED RESPONSIBILITY
T.I. C
HALLENGES AND OPPORTUNITIES FOR
ACTION
To promote:�Corporate Integrity Systems
�Widespread standards in Value Chains
�Collective Action initiatives
�Design and implementation of Transparency Indexes
Pushing for additional supervision of the
Financial Sector.
Give visibility to reforms and spread
best practices.
11
22
33
Abraham Lincoln (1809-1865)
„The best thing about the
future is that it comes only
one day at a time.“
Abraham Lincoln (1809-1865)
GDP EVOLUTION IN LATIN AMERICA
Source: World Bank