Latin America needs change

In a recent in-depth interview, Jose Manuel Salazar-Cirinacis, Executive secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), with his unique perspective and deep insight, laid out a blueprint for the future of Latin America that is full of challenges and opportunities. He warned that unless Latin American countries are bold and successful in implementing a series of deep structural changes, the rich and dynamic land could fall back into the shadow of a "lost decade."

Since its establishment in 1948, ECLAC has served as an important arm of the United Nations Economic and Social Council to promote economic prosperity and social progress in the countries of Latin America and the Caribbean. The remarks of Salazar - Cirinacis not only resonated widely within the scope of his office, but also triggered a profound discussion on the future fate of Latin America on the international stage.

When we look back in history, it is not difficult to see that Latin America has experienced two so-called "lost decades". The first occurred in the 1980s, an era marked by economists as one of regional stagnation and decline. At that time, Latin American countries were generally addicted to the rapid development model of high debt, and the heavy burden of foreign debt, especially at floating interest rates, became the sword of Damocles hanging over their heads. Latin American debt crises erupted like dominoes as interest rates soared as the United States tightened policy to fight domestic inflation. Starting with Mexico's debt default, Brazil, Argentina, Venezuela, Chile and other countries have been in trouble, economic stagnation, inflation, rising unemployment and other problems are intertwined, forming a vicious circle that is difficult to break out of.

After entering the 21st century, it seems that Latin America has not completely escaped the shadow of history. From 2015 to 2024, the region once again suffered from sluggish economic growth, dubbed the second "lost decade." This time, the volatility of international commodity prices, the global ravages of the novel coronavirus epidemic, and conflicts and turbulence within the region together constitute external factors that hinder Latin America's economic recovery. More fundamentally, however, the problems that Latin American countries have accumulated in the course of economic development, such as heavy debt burden, undiversified economic structure, and insufficient innovation capacity, have become internal obstacles to their long-term growth.

In the face of such a dilemma, the "deep structural change" proposed by Salazar-Chirinakis is particularly urgent and important. This is not only the reflection and summary of the past failure experience, but also the re-planning and positioning of the future development path. In his view, Latin American countries need to start from multiple dimensions and comprehensively promote economic and social transformation and upgrading.

First, Latin American countries need to fundamentally change their productivity and inefficiency, and promote high, sustainable, and inclusive economic growth through technological innovation and industrial upgrading. This means increasing investment in research and education, and cultivating more high-quality personnel. At the same time, enterprises are encouraged to increase research and development investment and technological innovation efforts to improve the added value of products and market competitiveness.

Second, regional economic integration and increased participation in globalization are also key. Latin American countries should strengthen their cooperation and coordination mechanisms and jointly cope with external challenges and uncertainties. At the same time, we actively participate in the reform and improvement of the global economic governance system to strive for more rights of discourse and benefit distribution.

In addition, population migration, digital transformation, environmental sustainability and the improvement of social security systems are also areas that Latin American countries need to focus on. To promote the optimal allocation of human resources by formulating reasonable migration policies; Accelerate digital transformation to promote industrial upgrading and improve the level of public services; Ensuring sustainable economic and social development by strengthening environmental protection and addressing climate change; We will improve the social security system to ensure people's basic living needs and rights and interests.

By and large, these changes did not happen overnight. They require the joint efforts and cooperation of Latin American governments, enterprises and all sectors of society. It is necessary to take full account of the national conditions and actual conditions of each country to formulate practical policies and measures. It is necessary to maintain enough patience and determination to deal with all kinds of difficulties and challenges that may arise.