ECLAC Calls for Renewing Ties between the European Union and Latin America and the Caribbean

Paris, July 2, 2014.- The European Union and Latin America and the Caribbean have the opportunity to find more complementarities to overcome old historic, social and trade-related asymmetries and advance towards a more balanced and equitable relationship, Alicia Bárcena, Executive Secretary of ECLAC, said in Paris.

The senior United Nations official was one of the main speakers at the meeting "New EU development cooperation strategies in Latin America and the Caribbean," organized by the EU-LAC Foundation and the Development Center of the Organization for Economic Cooperation and Development (OECD), with the support of the European Union program EUROsociAL.

At the meeting-which was inaugurated on Monday, June 30 by Benita Ferrero-Waldner, President of the EU-LAC Foundation, and Angel Gurría, Secretary-General of the OECD-ministers from Latin American countries and European Union authorities gathered, along with specialists from international cooperation agencies.

Bárcena also spoke in the French capital at the 2014 International Economic Forum on Latin America and the Caribbean, organized by the OECD, which was attended by Michel Sapin, Minister for Finance and Public Accounts of France; Luis Alberto Moreno, President of the Inter-American Development Bank (IDB); Danilo Astori, Uruguay's Vice-president; and Rebeca Grynspan, Ibero-American Secretary-General (SEGIB), among other officials.

Since the crisis that began in 2008, the problems that the Euro zone has had to face have led to stagnation in the relationship between the two regions, according to Bárcena. Nevertheless, the European Union continues to be the main collaborator, the main direct investor and the second-biggest trade partner of Latin America and the Caribbean, she indicated.

"For that reason, it is necessary to foster renewed ties between the governments, companies and social actors of both regions," ECLAC's Executive Secretary insisted.

According to Bárcena, a deeper partnership between Latin America and the Caribbean and the European Union would allow for accelerated economic growth in the region, progress on the structural change towards more knowledge-intensive sectors, poverty reduction, and greater social inclusion and environmental protection.

In her presentations, Alicia Bárcena emphasized that despite recent progress, Latin America and the Caribbean continues to be the region with the worst income distribution in the world, which is compounded by multiple gaps that reinforce each other, including gaps in human resource development, in insertion in the world of work and in access to social protection systems, as well as gaps related to territory, gender, ethnic group and generations, and in access to power.

Additionally, she referred to the existence of other types of inequality, such as functional inequality, which prevents workers from obtaining adequately the profits of productivity generated in the economy. Bárcena underscored the need to put the emphasis on productivity as a means to reducing inequality and poverty even further.

"The export model of Latin America and the Caribbean must be refurbished. Opening up is important, but it is not enough. What can governments do? Focus more on investment and have a deliberate industrial policy that also addresses the governance of natural resources," Bárcena said.

She also emphasized the importance of the integration of productive chains, which is at a very low level in Latin America and the Caribbean (19%) compared with the European Union (66%).

"In sum, we have five main messages: productivity, redistribution, urbanization, integration and sustainability. Economic growth and the reduction of monetary poverty are not enough, and a multidimensional approach is required," said ECLAC's top authority.

Alicia Bárcena added that Latin America and the Caribbean can grow with greater levels of inclusion, protection, participation, and social, economic and political equality; promotion and fulfillment of human rights; reduced exposure to the negative impact of external volatility; higher levels of productive investment; greater generation of decent, quality employment; and greater environment sustainability and resilience in the face of disasters.