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Latin American Leaders See Slow Regional Growth

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Leaders from Latin America and the Caribbean have predicted slow economic growth in the region in the coming four years.

The leaders foresee a drop, or in the best case, a growth of barely superior to the income per capita, from 2009 through 2012, according to a poll by the Inter American Development Bank released on Thursday.

The poll was conducted between November and January and queried 317 people from 26 countries in government, the private sector, non-governmental organizations, media and academics.

According to the poll, those surveyed expect the government to keep or increase its influence on the economy and said the most complex challenges are the fight against poverty and inequality, followed by a reduction in violence, crime and education improvements.

The poll showed that the leaders from Nicaragua, Haiti and El Salvador were among the most pessimistic, while those from Peru and Chile are the most optimistic.

Almost half of the officials and experts expect their countries to gain more support from international organizations like the IDB to fund their current accounts and budgets.

Only Nicaragua and Haiti expect financing from international organizations to be reduced in the coming four years.

The leaders also called for an overhaul of financial institutions.

Poverty and inequality received a large number of votes in comparison with education, which was the top priority three years ago.

The second most worrying aspect was violence and crime, which advanced two places.

The most daunting challenges in development varied from country to country.

In Brazil and Chile, education was the most daunting task, while in El Salvador and Guatemala, the main concern was poverty and inequality.

The IDB will analyze the results of the poll and the current global financial crisis during its 50th yearly meeting of governors on March 27-31 in Medellin, Colombia. Representatives from 48 countries also will discuss how the bank could deliver more support for the region.

(Xinhua News Agency March 20, 2009)