Latin American governments hope next week's G20 Leaders Summit will yield concrete decisions on global economic crisis, Jaime Carrera, director of the Fiscal Political Observatory (FPO) of the United Nations Development Program (UNDP), told Xinhua on Thursday.

Many Latin American economies have begun to feel the pinch of the unfolding economic crisis due to the decline in economic activities and the growing unemployment rate, Carrera said.

The economic growth of Latin America depends on that of the world, so, the global crisis will directly affect South American economies, he added.

Carrera, specializing in macro economy, said that if the world recovers from the slowdown, the Latin American will benefit from it concerning export and flows of capital.

The G20 leaders should make efforts to overhaul the global financial system, which have caused the crisis, Carrera said, noting that the world needs to see a new financial architecture, which is more transparent and better regulated.

Economic development of relatively poor countries is largely related to that of developed countries, Carrera said, adding that the worst economic turmoil in decades has begun to damage the export-driven Latin American, with a notable slowdown in economic activities and a reduction in oil prices.

To better their economies amid the unfolding crisis, governments of Latin American countries should make efforts to promote savings, improve fiscal management, attract foreign investment, stimulate export and develop private sector, Carrera said.

Developed countries, mainly European ones, have acted to bailout their companies, bolster employment and beef up confidence amid the economic woes, Carrera noted.

The FPO is an organization of the UNDP established in Ecuador to provide transparent finance and fiscal information in order to combat corruption.

(Xinhua News Agency March 27, 2009)