The Role of the Financial Sector in Mitigating the Global Crisis in Latin America

THE ROLE OF THE FINANCIAL SECTOR IN MITIGATING THE GLOBAL CRISIS IN LATIN AMERICA. Berlin (Germany), October 2009

CONTENT THE ROLE OF THE FINANCIAL SECTOR IN MITIGATING THE GLOBAL CRISIS IN LATIN AMERICA. 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

1. THE CRISIS IN LATIN AMERICA 4.6% 4.6% 1.1% GDP PIB Restrictive financial conditions Decreasing external demand and remittances 2007 2008 2009 Fall in commodity prices GDP is decreasing Unemployment (Agosto 2009) Poverty is increasing (2009) 33% of Latin American are poor. (182 million people) 6 million Latin American will become poor. Source: Interamerican Development Bank

90 2. CONFIDENCE ON THE PRIVATE SECTOR 80 70 60 42 41 41 50 38 36 40 32 30 20 10 0 2001 2002 2005 2006 2007 2008 HOW MUCH CONFIDENCE DO YOU HAVE ON THE PRIVATE SECTOR? (%) Paraguay R Dominicana ep. 56 56 Venezuela 50 Uruguay 49 Colombia 48 Brasil 46 Costa R ica 43 El Salvador 41 Panama 37 Ecuador 36 Chile 36 Peru 36 Mexico 35 Bolivia 35 Argentina 32 Source: Latinobarómetro 2008 Guatemala 31 Nicaragua 30 Honduras 30 Latinoamérica 41

2. CONFIDENCE ON THE FINANCIAL SECTOR 2003 2004 2005 2008 90 80 70 60 44 50 41 39 40 29 30 20 10 0 100 HOW MUCH CONFIDENCE DO YOU HAVE ON THE 90 80 BANKS? (%) 60 70 59 55 60 52 50 49 48 48 50 47 46 43 42 38 38 44 37 35 40 31 25 30 20 10 0 Source: Latinobarómetro 2008

DOING BUSINESS THE MOST PROBLEMATIC FACTORS FOR 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 Source: “The Global Competitiveness Report 2009-2010. World Economic Forum.

VICTIMS OF THE CRISIS

SHARED RESPONSIBILITY

ACTION T.I. CHALLENGES AND OPPORTUNITIES FOR To promote: 1 Corporate Integrity Systems Widespread standards in Value Chains Collective Action initiatives Design and implementation of Transparency Indexes 2 Pushing for additional supervision of the Financial Sector. 3 Give visibility to reforms and spread best practices.

„The best thing about the future is that it comes only one day at a time.“ Abraham Lincoln (1809-1865) almabalcazar@transparenciacolombia.org.co

GDP EVOLUTION IN LATIN AMERICA Abraham Lincoln (1809-1865) Source: World Bank

The Role of the Financial Sector in Mitigating the Global Crisis in Latin America

by Transparencia por Colombia on Nov 24, 2009

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The Role of the Financial Sector in Mitigating the Global Crisis in Latin America — Presentation Transcript