Georgia companies should focus on business opportunities in Latin America and the Caribbean, which have fared better during the current recession than elsewhere in the world, according to several speakers at the World Chamber of Commerce symposium held in Atlanta Dec. 3-4.
“It’s been the first time since the London crash in 1825 that Latin America has not been hurt the worst during a worldwide recession,” Charles Shapiro, senior adviser for economic initiatives at the U.S. State Department, said during his presentation. “When the world gets a cold Latin America generally gets pneumonia. This time the world got pneumonia and Latin America did not.”
An Atlanta native, Mr. Shapiro has had widespread experience dealing with Latin America, having served as ambassador to Venezuela from 2002-04, director of the Office of Cuban Affairs from 1995-98 and deputy chief of mission in Trinidad and Tobago from 1991-94 as well as other posts earlier in his career.
Referring to the 1825 economic crisis that was set off by a stock market crash in London and sparked in part by speculative investments in Latin America, England’s banking system was on the verge of total collapse until France’s national bank provided an infusion of gold reserves to the Bank of England.
Although Latin America suffered during the crisis, the repercussions were felt more profoundly in Europe and the United States.
Mr. Shapiro qualified his comments concerning Latin American countries by saying that the countries, “which have followed sound economic policy, have emerged well. There is real opportunity in Latin America and the Caribbean.”
He was relatively upbeat about Mexico, saying that it had been hit hard this year by swine flu and drug trafficking, but that next year would do better economically. He warned that China was making big inroads into Brazil and is now Brazil’s largest trading partner.
Brazil has made great strides in alleviating poverty, he added, comparing a current poverty rate of 25 percent to one of 40 percent 40 years ago. He also predicted that Brazil would soon be self-reliant for its energy needs.
In addition, Mr. Shapiro said that the current expansion of the Panama Canal would change “the architecture of trade,” and that the United States should anticipate its impact.
And, according to Mr. Shapiro, the Group of 20 composed of the finance ministers and central bank governors from 19 countries including Argentina, Brazil and Mexico has replaced the G7, which has no Latin American countries, as the more influential global policy making group.
Although Latin America has been relatively stable, Mr. Shapiro added that “it has not done well uniformly,” and still struggles with widespread poverty. He cited comments of Adm. Michael Mullen, the current chair of the Joint Chiefs of Staff, who has said that worldwide poverty continues to be the gravest security threat to the United States.
Georgians should be aware, he added, that the fourth annual Americas Competitive Forum is to be held in Atlanta in the fall of 2010 bringing together political and business leaders from throughout the Western Hemisphere to discuss common concerns.
Terry Coleman, Georgia’s deputy commissioner of agriculture, echoed Mr. Shapiro’s comments at the symposium, especially concerning the Caribbean islands, with Georgia “well suited,” he said, to develop social and tourist relations.
Mr. Coleman, who returned from an agricultural trade mission to Cuba last month, was adamant about strengthening both travel and trade ties with the island.
“I’m passionate about Cuba,” he said, “ and I think that the worst thing we have done is the Cuban blockade. The 49-year-embargo is not working and its one of the worst things that we have done and has been a disservice to this hemisphere."
To learn more about the World Chamber of Commerce, go to www.worldchamberc.org To reach Solange Warner, president and founder of the chamber, call (678) 938-4605.
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