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From Fragmented to Formidable:
A New Latin America?
Success is all about associations and connections. Countries that have been struggling to find their individual voices are now looking at the benefits of cooperation. New trade blocs are creating new opportunities. Can Latin American states achieve more prominence on the world stage through local and international alliances?
“Latin America has yet to explore its integrated potential,” says Samuel Urrutia, president of The Business Council of Latin America (CEAL). But the region is making strides: A new trade bloc, the Pacific Alliance, represents Chile, Colombia, Mexico, and Peru, and Panama may join soon. Urrutia sees Panama’s inclusion in the alliance as a significant advantage for regional integration and for Panama.
Regional integration
Uwill add value
rrutia believes that Latin America has been too focused on pursuing the limited agendas of individual countries. “We’ve been highly dependent on the price of commodities and have little leverage in the world market.” Latin America can compete with the world by shifting its dependency on world markets and creating an economic integration in which each country leverages its competitive advantage. Urrutia views the Latin America of the near future as an economy exporting manufactured goods, not commodities, to the world.
“The good news is that throughout Latin America we are convinced that it is worthwhile investing time and resources to further regional integration,” says Urrutia. “But as young democracies, we are in the process of devising the best way to integrate.”
Samuel Urrutia
President, CEAL CEO, Semusa Group
Latin America also enjoys the benefits of several integrative market organizations, including the Pacific Alliance, Mercosur, CARICOM, ALADI, and CAN, all of which Urrutia sees as a testing ground for working out “the best way to achieve regional integration.”
erious challenges for integration remain, primarily from politics.
“Political discourse persists
COUNTRY OVERVIEW
Latin America has been too focused on pursuing the limited agendas of each individual country and not focused enough on the big picture.
in eroding any advancement at the institutional level. It looks like a more divisive agenda may prevail over an integrative scheme,” Urrutia says. “In addition, our lack of foresight has diminished the window of opportunity to avoid repeating history; there is little time to act before unfavorable conditions affect the region. We should waste no more time in providing for better physical infrastructure—it is key to integrating with the world—and in committing as a region to adopting best practices in terms of environmental sustainability, social inclusion, and preventing corruption.
“The 21st century holds new opportunities—our region is rich in natural resources, arable land, a young population, and endless opportunities for growth.” But, Urrutia asks, how best to achieve this growth?
Challenges remain
S
CNetworks and alliances are key
EAL, Urrutia notes, has had an important role in connecting Latin American businesses to each other and to the global economy. A network of 537 powerful and influential
entrepreneurs in Latin America, the United States, and Europe, CEAL serves as a space for modern Latin American businesspeople to interact and discuss the boundless possibilities for synergistic efforts between the private sector and development. CEAL’s members are most interested in educational efforts that are aligned with the creation of an environment in which innovation and entrepreneurship can flourish.The group aspires to reinvent the Latin American entrepreneur into a social entrepreneur.
There is a lot Latin America can do: “The region is in need of more economic and regulatory integration, large investment in start-ups, R&D, and education.” The region must better prepare the workforce, foster its start-ups and research centers, and achieve information exchange through profound regional integration, adds Urrutia. “There is an urgent need for adequate forums of discussion, so that every actor understands his or her role and responsibility in creating a more
prosperous Latin America.”
Despite the challenges, Urrutia is optimistic. “The Pacific Alliance inspires new hope. The Pacific Alliance can serve as the flagship for integration efforts over political discourse.”
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