The ongoing global economic downturn has not only disturbed a healthy development cycle of Latin America's economy, but has also hit hard the region's common dream to take control of its own financial affairs.

A consecutive five-year rapid growth among Latin American countries since 2003 has prepared the region for further development. Most of them managed to clear their debts with the International Monetary Fund (IMF) with increases in their foreign exchange reserves.

Seven countries in the region, including Brazil, Argentina, Venezuela, among others, founded the Bank of the South in December 2007, an attempt to achieve regional financial independence as well as an endogenous development.

Members were determined to rely less on international financial organizations during hard times, and the Bank of the South is seen as an alternative to borrowing from the IMF and the World Bank which usually has strings attached to its lendings.

With the will to expand growth in a coordinated way, all the seven countries contributed to an initial capital of US$10 billion and promised an increase in the common fund which would eventually reach US$20 billion.

However, the unwished-for financial crisis dealt heavy blows to the rosy pictures the Latin American nations have painted for their future development.

The global downturn pulled down the prices of raw materials in the international market, shrinking the state revenues of major exporting countries in the Latin America region. Countries like Brazil and Argentina were haunted by currency devaluation, withdrawal of capital and fluctuations in stock markets.

Negotiations concerning the initial works of the Bank of the South came to a standstill.

By now, Latin American countries realized that they were still too weak to save themselves, while aid from international financial organizations are seen as being indispensable for them to tide over the difficulties.

Reports said that Argentina has already knocked at the door of the IMF, which has begun the evaluation of the country's economic situation and consultations on how to reduce inflation and public spending.