Latin American economies have the ability to recover from economic turmoil

By Marta Escurra

PANAMA CITY, Panama - Latin America has the ability to react quickly to an economic crisis because its "models are much less exotic than the ones in first world countries," according to John Müller, the economy section editor and associate vice director of El Mundo, one of Spain's leading newspapers.

Müller was one of the panelists at the 3rd Iberian-American Journalists Meeting, titled "Youth and Media," held in Panama City and organized by the Iberian-American Youth Organization.

"The world's financial wealth has been reduced by 1% in just a couple of years," Müller said "The world financial crisis was similar to the 'corralito' crisis in Argentina [in 2001]. But Mexico, for example, is already recovering. Brazil is an outstanding example, too. Latin American [countries' economic forecasts] tend to be auspicious. This is because these countries have less exotic economic models that enable them to carry out more responsible policies."

Migrants are a key factor in economic stability for Latin America, as remittances to family members in their native countries play an important role in the overall economic stability of a region, according to Müller.

"Latin America continues to export its workforce," he said, noting that the United States is the primary recipient.

Overall, youths tend to be more tempted to migrate "because it is a vulnerable sector. The unemployment rate is higher than in other segments because [youths] are in a transitional stage, between the educational system and the real economy," Müller said.

Venezuelan Liza López, editor of the Marcapasos magazine and a member of the panel at the meeting, added: "Beyond how exotic we (Latin Americans) are and how we look at things optimistically, crises can bring good things."

Her magazine ceased its print version as a result of the economic crisis. But López and two colleagues will restart the publication online this month.

"The crisis has the capacity of activating entrepreneurial creativity," López said. "In Venezuela, youths are coming up with interesting initiatives. Venezuelans survived [the crisis], but politics have affected us tremendously."

Latin America's creativity could make an impact worldwide, Müller suggested.

"You have to come to Latin America to see how alive it is," he said. "The sap of renovation emanates from Latin America. In the end, this continent, which has suffered from a lack of resources, is the one that has a lot of things to teach."

Source: Infosurhoy.com-10/02/2010

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