(28 May 2013) According to a new ECLAC document launched today, Latin American countries must review and strengthen the institutions and instruments in order to maximize the contribution of natural resources to regional development, particularly in the current cycle of high prices.

The report Natural resources within the Union of South American Nations: Status and trends for a regional development agendawas presented by Antonio Prado, Deputy Executive Secretary of this United Nations regional commission, at the Conference of the Union of South American Nations on Natural Resources and Integral Development in the Region, which is being held until 30 May in Caracas, Venezuela.

In the document, ECLAC analyses the issue of natural resource governance in the region, which refers to the set of sovereign policies over ownership and allotment of natural resources and the distribution of productivity gains arising from their exploitation.

Latin America and the Caribbean has 65% of the world’s reserves in lithium, 42% of silver, 38% of copper, 33% of tin,  21% of iron, 18% of bauxite and 14% of nickel. It also has large oil reserves: a third of world bioethanol production, almost 25% of biofuels and 13% of oil.

The region has around 30% of the world’s total renewable water resources, which represents over 70% of the water throughout the Americas, as well as having 21% of the planet’s forests and plentiful biodiversity.

However, the region has major weaknesses, such as production and export structures based on static comparative advantages (based on natural resources alone) rather than dynamic competitive advantages; low investment in infrastructure, exploration and value added; and poor performance in innovation, science and technology.

According to Antonio Prado “Historically, the region has been unable to translate the boom periods of exporting its resources into long-term economic development processes.  The challenge for the countries of the region is to generate and efficiently invest extraordinary revenue from the current price cycle with social and environmental sustainability”.

In the new report, ECLAC describes the various legal and economic instruments that Latin American and Caribbean States have at their disposal to appropriate and distribute the revenues from the exploitation of natural resources relating to mining, water and hydrocarbons.

In terms of mining, ECLAC states that four UNASUR countries (Argentina, Brazil, Chile and Peru) receive 62% of regional investment in exploration (and according to 2010 data the percentage climbs to 84% if Mexico is added).

In 2011, Brazil, Chile and Peru were among the top 10 recipients of mining investment, accounting for 36% of the world total (compared to 26% in 2000).

Between 2000 and 2010, the region’s oil exports did not follow the upward trend of prices, unlike the pattern in the rest of the world. Despite this, estimated income of the hydrocarbons sector during the boom of 2004-2009 (7.1% of GDP) was double the average recorded between 1990 and 2003 (3.6% of GDP).

ECLAC also states that UNASUR has a primary energy supply structure that is cleaner than the world average (31% compared with 12%), as it combines energy sources such as hydroelectricity, biomass and other renewables. In 2011, for instance, hydroelectricity represented 11% of these countries’ total primary energy supply (which is much higher than the world figure of 2%).

The Commission describes the region as facing the challenge of achieving homogenization and integration in energy consumption, with a view to narrowing the subregional divides that still persist, namely: the heterogeneity of natural resources, supply structures and energy consumption, and the need to achieve institutional consolidation and establish the basic conditions for renewable energy promotion and penetration policies.

According to ECLAC, the subregion’s public policies should take a long-term view on the need to ensure efficient investment of the windfall earnings from natural resources now that prices are buoyant, as well as on the need to improve public management of socioenvironmental conflicts that arise in the development of natural resource sectors.

Speaking to delegates from the Commission’s 33 Member States and associate members in the conference hall of the United Nations Headquarters, Ms. Bárcena stated “Structural change proposes a long-term vision and gives meaning to planning in the 21st century”.

The welcoming address was delivered by Carlos Enrique García, Permanent Representative of El Salvador to the United Nations. El Salvador is the Chair of the Twenty-seventh Session of the Committee of the Whole of ECLAC, which is a forum for member countries to meet between the official sessions of the Commission.

During the meeting, Raúl García-Buchaca, Director of the ECLAC Division of Programme Planning and Operations, and Diane Quarless, Director of the ECLAC Subregional headquarters in the Caribbean, gave a presentation on the Commission’s strategic focus and its impact on the 2014-2015 programme of work.  Luis F. Yáñez, Officer-in-Charge of the Secretariat of the Commission, and Ms. Quarless, presented the Report on the activities of the subsidiary bodies of ECLAC, 2012- 2013.

Alicia Bárcena and the Director of ECLAC Subregional headquarters in the Caribbean presented the main conclusions from the document Sustainable Development in Latin America and the Caribbean: Follow-up to the United Nations development agenda beyond 2015 and to Rio+20, which was drafted by ECLAC officials with the support of other United Nations agencies. Other speakers on this topic included George Gray Molina, Chief Economist for Latin America of the United Nations Development Programme (UNDP).

Delegations welcomed the presentations by ECLAC officials and stressed the importance of the Commission increasing its presence at the United Nations Headquarters, for instance by holding technical and intergovernmental meetings focused on the post-2015 process.

Participants also discussed the possibility of organizing a meeting of ECLAC officials and system agencies and permanent representatives of Latin America and the Caribbean to the United Nations in October to analyse the post-2015 development agenda.

Representatives from Caribbean countries praised the activities carried out by the ECLAC Subregional headquarters in Port-of-Spain, particularly in terms of small island developing States (SIDS) and the post-2015 process. Delegates were also pleased to receive the document on middle-income countries prepared by the Commission.

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At its 65th session, held from 9 to 11 April at the Palais des Nations in Geneva, the United Nations Economic Commission for Europe (UNECE) adopted the outcome document of the review of the 2005 UNECE reform, which defines the strategic priorities for UNECE’s work for the coming years.

The high-level debates were centred on two issues that are most pertinent to the current development debate and are at the core of UNECE’s activities and member States’ priorities:

1.         Follow-up to Rio+20 and post 2015 development agenda.

Some of the main points arising from the discussions, the summary of which will serve to inform the global processes, in particular the high-level meeting of the General Assembly in September 2013, were:

• Messages in the Rio+20 outcome document “The Future we want” provide a sound basis for further work on achieving sustainable development. Next steps include creating a set of Sustainable Development Goals (SDGs), beginning to address the financing needs of developing countries, and creating a range of new partnerships.
• the UNECE region’s diversity in terms of the level of development, the range of economic models, climatic conditions, natural resource endowments and the overall challenges facing each country, need to be recognized in any policy framework as there is no ‘one size fits all’. In addition, this diversity can act as a laboratory for testing different approaches towards addressing these challenges.
• the need to eliminate or reduce fossil fuel subsidies was highlighted as a quick policy change that can have immediate impact by changing consumer behaviour.

As regards the sustainable development institutional set up:

• Delegations stressed that the new high-level political forum (HLPF) currently under development should take into account the lessons learned from the Commission en Sustainable Development (CSD). In order to make better use of existing United Nations processes and institutions, delegations called for the HLPF to serve as a dynamic platform directly linked with ECOSOC.
• Sustainable development goals (SDGs) should be global in nature and universally applicable to all countries, limited in number, action-oriented and easy to communicate. However, some flexibility in the definition of indicators will be required to take into account regional and national circumstances.
• The regional commissions should assume an active and strong role in both the HLFP and SDGs processes, also acting as a “conductor” between global and national levels.

2.         Economic developments and challenges in the UNECE region

During the discussion on the “The role of innovation in creating a dynamic and competitive economy”, some key points made included:

• Innovation has acquired heightened importance in current economic circumstances as a way to improve productivity and competitiveness, and overcome tight budgetary constraints.
• Greening the economy is a large-scale structural transformation that requires a regulatory and policy environment that encourages innovation in multiple sectors.
• Successful innovation requires collaboration between the public and private sectors, and between academia and industry.

There were several proposals to strengthen the role of UNECE on innovation, in particular regarding issues such as the creation of mechanisms to facilitate cross-border policy learning and the exchange of good practices on eco-innovation, the promotion of small and medium-sized enterprises and the linkages between standard- setting and innovation.

The results of this panel discussion will serve as regional input to the 2013 ECOSOC Annual Ministerial Review whose theme is “Science, technology and innovation, and the potential of culture, for promoting sustainable development and achieving the MDGs”.

New bureau

The Commission elected its new Bureau, with the Netherlands as Chair (Ambassador Roderick van Schreven, Permanent Representative of the Kingdom of the Netherlands to the United Nations Office and other international organizations in Geneva), and Switzerland and Turkmenistan as Vice-Chairs (Ambassador Remigi Winzap, Permanent Representative of Switzerland to the World Trade Organization (WTO) and to the European Free Trade Association (EFTA); and Ambassador Esen Aydogdyev, Permanent Representative of Turkmenistan to UNOG and other international organizations in Geneva).

All delegations paid tribute to the outgoing Chair, Ambassador Zvekic of Serbia, and Vice-Chairs, Ambassadors Manor of Israel and Ciobanu of Romania, for the leadership demonstrated over the last two years in the negotiations on the outcome document of the review of the 2005 UNECE reform.

The Executive Secretary stressed that this 65th session was of particular relevance since it constituted the regional contribution to global processes led by ECOSOC and the UN General Assembly. The 65th session strengthens trust and confidence amongst member States and between member States and the Secretariat, he said.

Among other decisions, the Commission also decided that the Timber Committee be renamed “Committee on Forest and Forest Industry” in order to better reflect its current focus and tasks.

The 66th session of the Commission will be held in 2015

Statement as Delivered by Ms. Noeleen Heyzer,

United Nations Under-Secretary-General, Executive Secretary of ESCAP, and Coordinator of the UN Regional Commissions

to the High Level Panel on Post-2015 Development

Monday, 25 March 2013

Bali, Indonesia.

Distinguished Members of the High Level Panel,

Ladies and Gentlemen,

Let me start by thanking H.E. President Susilo Bambang Yudhoyono, and the people of Indonesia for their hospitality. My appreciation goes as well to the distinguished members of the high-level Panel for the opportunity to share the perspectives of the five United Nations Regional Commissions.

The Regional Commissions, from Latin America, Africa, the Middle-East, Asia and the Pacific and also from Europe, have had extensive consultations with our governments, civil societies, private sectors, academia and parliamentarians. Just in Asia-Pacific, to give you a sense of the meetings that we have had, ESCAP organized sub-regional meetings in partnership, as you heard this morning, with the Asian Development Bank, and UNDP. We also had meetings with the landlocked countries, the least developed countries, the small island states and recently, in Timor-Leste, with the more fragile states. So what are some of the priorities that have come out from these consultations?

Firstly, a repeat of the message that we heard earlier: that the Millennium Development Goals (MDGs) are unfinished business. We need to accelerate the implementation of the MDGs. The consultations addressed new challenges, as well as old ones, calling for a new development model to be based on structural changes for equality, inclusiveness, resilience and sustainable development, as a more integrated whole. The over-arching message emerging from the consultations was that the next phase of development has to be a transformative agenda that is people-centered, cares for our planet, and which generates shared and sustained prosperity.

This is the regional vision of the type of world that we want. The question, across all regions, was how best to get there. The connecting theme was that people from around the world are asking for a new social contract for sustainable development, between the state and its people, and between the state and the market. This social contract has to promote citizens’ engagement, translating growth into productive employment for all. It has to adopt policies for the fairer redistribution of wealth, economic assets and opportunities – where there is better resource management and governance, and better financial governance, including the issues of money laundering and corruption, greater accountability of both the public and the private sectors, and providing quality services to all.

The message that I bring to you also looks at the areas of priority action identified by the various regions, priorities which can only be effectively acted upon through a genuine global partnership, based on trust and not on conditionality, where both the developed and developing countries play their parts. This is why the need for agreement on the means of implementation for the next phase of the global development agenda is extremely important.

Amongst the critical priority areas indentified by the Regional Commissions, through our consultations, were: firstly, that we need to take into account that not all countries and regions are the same – it is not a homogenous agenda. The framework has to take sufficient account of the fact that countries and regions have different initial conditions and resource bases, in terms of human, institutional and natural resources, and that there has to be, therefore, enough flexibility to adapt this agenda at the local, national, and regional levels. For example, many countries in Asia and Latin America are middle income countries, but at the subregional level there are extremely poor communities. Therefore, poverty reduction has to be the top priority in all our regions. In fact, the term that was frequently heard in the consultations was that there are “rich countries with poor people” and sometimes “poor countries with rich natural resources that are badly managed”.

The issue of flexibility must also be extended to strategies for achieving our  development goals of inclusiveness, of sustainability and of equality. It cannot, therefore, be a ‘one-size-fits-all’ solution. We also need to look at the development agenda in the context of the post-2008, post-financial crisis world: with ODA financing for middle income countries declining, it will be very important to create fiscal space and make spending and taxation more progressive in all our regions in the post-2015 agenda.

The means of implementation that are needed for these priority areas, must be more universal, to gradually diffuse the North-South paradigm that has dominated our international cooperation discourse. The concentration on accountable partnerships is therefore absolutely critical. Having said that, the intensity of development challenges facing developing countries is deeper still, and we need therefore to have international commitments and shared responsibilities, including those still relating to ODA, access to markets, technologies, and essential drugs. This needs to be politically upheld, notwithstanding the importance of mobilization of domestic and regional resources. In fact many countries, especially the middle income countries, are indeed looking at how they can mobilize greater domestic and regional resources. ODA will not be a basic pillar of the post-2015 development agenda, but it is still an unfulfilled promise that needs to be attended to.

We held several consultations with the landlocked and least developed countries, and here the emphasis was on transit trade and on regional connectivity, not only the hardware of connectivity, but also the software of connectivity. There was also a consultation with fragile and conflict-affected states, in Timor-Leste, and what emerged were four priorities: inclusive economic growth that is pro-poor and pro-jobs; state effectiveness and state building for development effectiveness; citizens’ security and the concern that it is not just war that creates violence, but the fact that many of these societies are being criminalized, and that violence related to criminality was a major concern; and of course the issue of peace and justice based on human rights. There was also a major concern about the establishment of better economic and social protection systems for the whole life-cycle, taking into account the challenges and opportunities of changing demographics, such as the ‘youth bulge’.

Other priorities which emerged were the need to build good governance, better state institutions, better alliances, better citizens’ engagement, and also to fight corruption. The need was also identified for a better regulatory environment for investment and trade, in order to generate jobs. By the same token, governance also has to be improved at the international level, to ensure that the interests of all countries are represented in global decision-making.

In addition, there was a very strong sense that, to fortify genuine global partnerships, there must be a focus on essential global public goods. The means of implementation should address how to mobilize and harness global partnerships for global public goods including: fair trade; stable international financial systems; and the accessibility of technologies for health, for inclusiveness and also for environmental sustainability.

Acting solely on outcomes, as is the case in the MDG framework, without addressing enablers of development and means of implementation, will not yield the structural transformations needed in the post-2015 agenda. The importance of regional public goods to development is most pertinent in this context – especially infrastructural deficits in transport, power generation, and information and communication technologies. The post-2015 agenda must, therefore act on global and regional impediments constraining such potential for development financing.

In conclusion, there was a focus on the need for partnerships for sustainable development to be built, and that means that we need to have a more holistic framework of human development and sustainable development, and that this must be consistent – we cannot see them as trade-offs, they have to be seen as synergies.

What we are looking for is low-carbon growth, that is high on poverty reduction, and high on reducing inequality. In this context we need to address climate change and issues of volatility, ensuring that development gains are not lost due to natural disasters or to manmade disasters such as financial crises and speculative behavior leading to excessive price volatility in essential commodities. We need therefore to strengthen the resilience agenda.

Another key issue that received prominence in the regional consultations was the imperative to achieve gender equality and to end the global scourge of violence against women and girls.

In short, the world that the Regional Commissions want, and are working towards, is a more resilient one, founded on shared prosperity, on social equity, on citizen’s security, and on sustainability. This is the world that we want our children to inherit.

I thank you.

 Please click here for all information regarding the upcoming ECA event.

On 8 March 2013, ESCWA commemorated International Women’s Day in its Beirut headquarters, in the presence of UN officials, representatives of non-governmental organizations working on women’s rights, and a host of activists, media and academia. The Commission held a panel discussion to speak up against violence against women, consisting of ESCWA Deputy Executive Secretary Nadim Khoury, Senior ESCWA Economist Abdallah Al Dardari, Former Minister of State for Parliamentary Affairs Wafa Al Diqa Hamzeh, Deputy Director of the Middle East and North Africa Program at the International Centre for Transitional Justice Anne Massagee, and Director of KAFA Enough Violence and Exploitation Zoya Rouhana. Director of the ESCWA Centre for Women (ECW) Samira Atallah delivered the introductory statement of the meeting.

For her part, Atallah expressed her desolation that despite repeated cases of violence against women and girls, including domestic violence, early and forced marriage, honor killings, female genital mutilation, trafficking in persons, and discrimination in economic rights, this issue cannot be defined with precision in the region. The reasons behind this is the absence of comprehensive statistical studies, fear of social stigma, lack of trust in the legal protection system, and the lack of knowledge and awareness of available services. She said that the courage to face up to these violations against women takes source in the courage of women and girls, and in many cases of men who take a supporting stands and initiatives. The ECW Director underlined that the responsibility of eliminating violence against women is not that of the state alone, but it also lies within every member of the society, and every organization, whether governmental, semi-governmental, or non-governmental.

In her intervention, Rouhana laid out the principle of “due diligence” and the commitment of states in eliminating violence against women in times of peace. Al Dika Hamze highlighted the role of national machineries in empowering women in preventing and eliminating these violations, especially in rural areas and among the most marginalized groups.

In assertion of the important economic aspect of violence against women and girls, Dardari shed light on the economic repercussions of this case, especially since this issue is not taking its due right in full attention in the region.

Finally, Massagee dealt with issues related to protecting women during and in post-conflicts periods. Following these interventions, Fateh Azzam, Human Rights Expert and Former Regional Representative of the UN Office of the High Commissioner for Human Rights in the Middle East, moderated a panel discussions with the participants in terms of international human rights law.

Published: 27 February 2013

On the occasion of the 75th Jubilee session of the Inland Transport Committee (ITC) of the United Nations Economic Commission for Europe (UNECE), a high-level Ministerial meeting was held on 26 February 2013. More than fifty Ministers, Deputy Ministers and other high-level officials from across Europe and Asia gathered in Geneva to endorse the final report of Phase II of the Euro-Asian Transport Links (EATL) project. The report identifies overland transport routes that could save both time and costs of delivery of freight and trade between two continents. In addition, the Ministers and other heads of delegations from thirty two countries signed a Declaration future cooperation on the EATL project.

The EATL Phase II report identified 9 rail and 9 road routes between Europe and Asia as well as 17 water transport links, and several inland and maritime ports. Road and rail routes are new versions of the “old silk road”, but they are extended far beyond this traditional lifeline of ancient times. EATL road and rail routes will stretch eastward from Central and Eastern Europe all the way to Russian ports on East Sea, Chinese ports on Eastern China Sea, and southward toward Iran and Pakistan and their ports in the Persian Gulf and Indian Ocean. The routes will criss-cross the land mass between Europe and Asia thus connecting regions and countries that have so far suffered from lack of access to seaports and good transport connections to their neighbours.

The project resulted in a multi-country transport investment plan, which is the outcome of the review and prioritization of 311 priority projects The total cost of these projects is over US $200 billion. Out of them, 188 projects have been identified as high priority requiring special attention. Their estimated costs are US $78 billion.

In addition, The EATL project had other tangible results, all included in the study that was launched during the Ministerial meeting. Among them, you can find the Geographic Information System (GIS) data base which is an innovative feature in the project that governments may wish to use and further develop in their national planning processes. Furthermore, the comparison of maritime and land transport – described in details in the publication – has challenged   conventional wisdom that maritime transport is per se more competitive than land transport. A door-to-door approach however, showed that railway transport between Europe and Asia can be a viable alternative both in terms of time and cost.  Accordingly, maritime transport is cost-effective, but in most cases standard deliveries take up to 30 days port-to-port while hinterland connections may pose a challenge. Being twice as fast as maritime transport, railways could provide a viable alternative for Euro-Asian freight transport, and could also deliver door-to-door. In addition, costs could be reduced between 10 and 30 per cent compared to maritime transport.

Mr. Sven Alkalaj, Executive Secretary of the UNECE said: “Development of Euro-Asian transport links is a long-term process which requires, first and foremost, strong political will and commitment of the countries concerned, as well as careful use of scarce financial resources”. He also added: “This makes it a complex exercise, requiring Governments to strike a balance with other national priorities and weigh them with international interests. They also need to ascertain the economic, social and environmental net benefits, coordinate programmes and timetables in close cooperation with neighbouring countries, as well as to balance private sector versus public participation, all while factoring-in security considerations”.

Mr. Yang Zan, Director-General of the International Cooperation Department, Ministry of Transport of the People’s Republic of China, said … that “the early realization of Euro-Asian Transport Linkage and transport facilitation will be beneficial to the economic and social development of Euro-Asian countries. However, we are also aware that there still exist in practice many difficulties to be tackled. The Chinese government greatly appreciates the measures taken by UNECE in this respect”…. and that “China is ready to work with all the interested parties to make more contribution to the economic development and social progress in the region”.

Mr. R. V. Sklyar, deputy Minister of Transport and Communications of Kazakhstan, said that, due to its geographical position at the crossroads of routes between Europe, China, Japan and South-East Asia, Russia, Turkey, Persian Gulf, and Black Sea, Kazakhstan attaches great importance to development of transport infrastructure and invests considerable amount of financial resources in 5 major transport corridors, which are part of EATL links, passing through his country.

Another part of the report brings out analysis of non-physical obstacles to international transport between Europe and Asia. A comprehensive set of recommendations concludes this analysis highlighting remedies for concrete obstacles at border crossings, along transport route corridors as well as logistics obstacles. As an integral part of the project, a Geographic Information System (GIS) data-base was set up and GIS maps developed showing the planned projects.

The Phase II of the EATL project which has recently been completed covered 27 countries[1], with more countries expected to join the project in the next phase. By signing the Declaration, Ministers reiterated their support to Phase III of the project, which would focus on specific trade and transport facilitation measures to make EATL links not only more efficient and attractive to investors, but also contribute to faster economic growth, increased employment and better regional connectivity. Mr. Sergey Aristov, Secretary of State – Deputy Minister of Transport of the Russian Federation, outlined the focus of the Phase III of the project, by underlying market oriented analysis, investigation of trade flows attracted to EATL routes and issues related to application of modern technologies and innovations.

For further information on Ministerial meeting visit: http://www.unece.org/trans/events/2013/itc75_2013/ministerial_meeting.html

You can download the full EATL report at:

You may also contact:

(15 February 2013) The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, met on Wednesday 13th February with the President of the Council of State and the Council of Ministers of Cuba, Raúl Castro, as part of an official visit to the island that began on Monday 11 February and ends today.

The Cuban President, who was accompanied by the Minister of Foreign Affairs, Bruno Rodríguez, and the Minister of Foreign Trade and Foreign Investment, Rodrigo Malmierca, thanked the willingness of ECLAC to support the work of the Community of Latin American and Caribbean States (CELAC) in 2013, as its pre tempore presidency is held by Cuba.

During her visit to the island, the Executive Secretary highlighted how CELAC had matured since it was set up in 2011 and the role it can play in regional integration by building bridges of communication among Latin American and Caribbean countries and helping the region to act as a bloc in its dealings with other world nations and regions.

As well as discussing many items on the international agenda, such as the economic and environmental crisis and high food prices, Alicia Bárcena and Raúl Castro analysed ways that ECLAC and the Government of Cuba can cooperate in areas such as the fiscal policy being implemented by the country.

During her week in the Cuban capital, the senior United Nations official held meetings with Government authorities and took part in several academic activities, including a lecture at the University of Havana, where she was presented with the University’s 280th anniversary plaque, as well as a seminar on 50 years of planning on the island.

Ms. Bárcena met with authorities including the Vice-President of the Council of State and Council of Ministers, Marino Murillo, Vice-President of the Council of Ministers and Minister of Economy and Planning, Adel Yzquierdo, Minister of Finance and Prices, Lina Pedraza, President of the Central Bank of Cuba, Ernesto Medina Villaveirán, interim Director of the Centre for World Economy Studies (CIEM), Ramón Pichs Madruga, and the Vice-Minister of Foreign Trade and Foreign Investment, Ileana Núñez.

She also met with the Vice-Minister for Foreign Affairs, Abelardo Moreno, the President of the Environment Agency (AMA), Gisela Alonso, and the Head of the National Office of Statistics and Information (ONEI), Alexander Rodríguez.

The delegation accompanying the most senior representative of ECLAC consisted in Raúl García-Buchaca, Director of the Programme Planning and Operations Division, Hugo Beteta, Director of the ECLAC subregional headquarters in Mexico, and Luis F. Yáñez, Officer-in-Charge of the Secretariat of the Commission.

As part of the mission to Cuba, on Monday Ms. Bárcena and her delegation placed a floral tribute on the José Martí Memorial in the Plaza de la Revolución.

Renowned Latin American and European economists met at the headquarters of the Economic Commission for Latin America and the Caribbean (ECLAC) in Santiago, Chile, to discuss the opportunities and challenges of the biregional relationship in the current scenario of international turmoil.

The event is taking place as part of the 1st Summit of the Community of Latin American and Caribbean States and the European Union (CELAC-EU), which will bring together representatives from 60 countries on 26 and 27 January in the Chilean capital.

The LAC-EU Economic Forum 2013: Globalization, International Trade and the Welfare State at Crossroads: Converging Views in European and Latam countries? was opened on Monday 21 January by Alicia Bárcena, Executive Secretary of ECLAC, and François Bourguignon, Director of the Paris School of Economics.

According to Alicia Bárcena “Latin America is in a positive state of mind, despite the turmoil in the world economy. The region is learning from the past and trying new paths. The Latin American foreign debt crisis happened 30 years ago, and led to a lost decade for the region. We are worried that the same may happen in Europe” .

The ECLAC leader added that “the South is no longer the same. Europe will see a different Latin America, because the region has changed. This implies tackling new global challenges responsibly, and making commitments on issues such as climate change and financial security”.

François Bourguignon described the firstLAC-EU Economic Forum as a space for reflection aimed at identifying and sharing lessons learned, as well as reaching common visions on issues relevant to both regions, such as international financial governance.

He also emphasized that the Forum, which ends on Tuesday 22 January, is also an opportunity for Latin American and European economists to ask questions and send messages to countries participating in the 1st CELAC-EU Summit.

The Economic Forum was jointly organized by ECLAC and the Paris School of Economics, with support from the French Foreign Affairs Ministry. Other contributors include the German Federal Ministry for Economic Cooperation and Development and the France-based Institute for the Americas (IDA). Sponsors include the EU-LAC Foundation and the Latin American Centre for Relations with Europe (CELARE).

In his address, Mr. Bourguignon compared trends in a few key indicators for both regions in recent decades, including GDP growth rate, share of exports in GDP and the Gini coefficient measuring inequality.

According to the Director of the Paris School of Economics, while inequality has fallen in Latin America and the Caribbean in recent years, it is on the rise in Europe.  He also referred to the role of social protection policies in this regard.

Ms. Bárcena stated that, although the European Union is the main direct investor in Latin America and the Caribbean and the second main trading partner, the biregional relationship has stood still in recent years due to several factors.

These include the dramatic economic crisis affecting some European countries, the new position of China, the incorporation of new Member States to the European Union and the growing relevance of the Middle East and North Africa in the European foreign agenda.

In this sense, the ECLAC Executive Secretary appreciated the holding of the First CELAC-EU Summit to analyse the type of relationship that can be built to face the future. She added that this meeting is also “a very important step towards one of ECLAC‘s most cherished dreams: regional integration”.

The two days of the Forum – which hopes to become a new high-level space for biregional dialogue- will feature discussions on topics such as asymmetries in economic policy responses, trade imbalances, industrial development and environmental issues, and the future of the welfare state. Some policy proposals will also be put forward.