World Bank highlights growth despite crisis

Omar Bonilla

LATIN AMERICA - World Bank (WB) representative for Bolivia Óscar Avalle has highlighted the projected economic performance of Panama, Bolivia and Peru for 2009, citing these Latin American countries as international examples of a positive reaction to the global crisis. In an interview with La Razón, Avalle said that the aforementioned countries will register growth in 2009 despite the effects of the global financial crisis.   

The WB expects to see year-on-year growth of 3.5 percent in Panama, while the Central Bank of Bolivia (BCB) foresees a 4 percent growth rate for the country. Meanwhile, Peru's National Confederation of Private Business Associations predicted year-on-year growth of 3.5 percent for its economy.

Avalle maintained that Latin America will not suffer an economic downturn as severe as that seen in industrialized countries. He said to EFE, "The deficits of the past do not exist today in Latin America. The same goes for inflation. They are much more stable. It would appear that we can teach the rest of the world a lesson on how to tackle a crisis."

In statements to La Razón, he added that some Latin American countries are in a state of apprehension and although they have felt the effects of the financial crisis, especially on textile exports and on agribusiness, economies such as those of Peru, Panama and Bolivia are facing up to the effects of the crisis satisfactorily, "although obviously the issue of poverty is a problem which cannot be eradicated overnight." The fall in remittances is another principal effect of the crisis in the region.

The debate over the best way to avoid these falls began when the global crisis broke out in 2008. Avalle added in statements to La Razón, "Everything is under analysis, but some Latin American countries took corrective measures years ago in order to alleviate the huge crises which used to plunge large sections of their population into poverty."

The representative maintained that attention must not stray from efforts to alleviate the situation of poor people in the region, and above all, "the weight of the crisis must not fall on them. This is why the World Bank is supporting projects such as the Bolivian government's National Development Plan."

Source: http://infosurhoy.com

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