Latin America, the United States and Spain have many similarities. Not only do they speak (or almost) the same language, but they also face similar economic challenges and opportunities in the globalized world. For this reason, On September 21, 2023, the forum “Latin America, the United States and Spain in the global economy” took place in the Spanish capital. The event was attended by leading representatives from politics, business and science from all three parties, who discussed global trends and opportunities for economic cooperation.
Latin America has a history and culture that connects it to the United States and Spain. Like Latin America, these two countries belong to the West. This means that they share Judeo-Christian and Greco-Roman heritage. However, in today’s multipolar world, Latin America appears to be moving further and further away from its historical partners and closer to China.
These two countries are economic and political powers that can offer Latin America many benefits of cooperation and development. Aside from that, The exchange of values, culture and similarities is not an everyday occurrence. It is not about losing our identity or our sovereignty, but about recognizing our shared history and our shared future.
One of the most important topics of the forum was the war in Ukraine and its impact on the global economy. Participants agreed that war is a factor that slows global economic growth, increases inflation and threatens food security. According to the World Bank, the war has led to a 4% decline in global GDP in 2023. In addition, the war has triggered a humanitarian crisis affecting millions of people suffering from hunger, displacement and violence. The participating countries expressed concern about the situation and called for a peaceful and diplomatic solution to the conflict.
The conflict in Ukraine impacts the global economy in several ways. One of them is the rise in oil and food prices. Why are these prices rising? Because conflict creates uncertainty, scarcity and risk. This makes producers, transporters and consumers nervous and demands more oil and food to protect themselves from possible crises. And all this without the market-distorting sanctions imposed by countries against Russia. And as you know, when demand exceeds supply, prices rise.
And how does this affect Latin America? It depends on. Latin America is a region that exports and imports oil and food. On the one hand, the increase in oil prices benefits producing countries such as Venezuela, Colombia and Ecuador. On the other hand, The rise in food prices is hurting consumer countries such as Mexico, Brazil and Argentina. The conflict therefore has mixed effects on the region.
Participating countries also committed to working together to accelerate the transition to a low-carbon economy. They recognized that climate change is a real and urgent threat that requires collective and ambitious action. According to the UN, climate change could cause global temperatures to rise by up to 4°C by the end of the century, which would have devastating consequences for the planet. For this reason, the participating countries agreed to promote renewable energy, improve energy efficiency and reduce greenhouse gas emissions.
Participants emphasized the importance of strengthening economic ties between the three countries. They stressed that Latin America, the United States and Spain have great potential to increase trade, investment and innovation. According to ECLAC, trade between Latin America and the United States reached 800 billion dollars in 2022, while trade between Latin America and Spain exceeded 100 billion euros in 2021. The participating countries agreed to facilitate access to markets, promote regional integration and promote scientific and technological cooperation.
The forum was an important space for dialogue and cooperation between Latin America, the United States and Spain. Participants agreed to continue working together to address global economic challenges and promote sustainable economic growth. The forum was also an opportunity to strengthen cultural and social ties between the three parties. As the Spanish President said at the end of the event: “We are three brothers who share a common history and a promising future.”
Let’s not fool ourselves. These forums generally don’t solve much. To be honest, they are pure blah. Leaders shake hands, take photos, give speeches and sign statements that are then forgotten. There are no concrete commitments or effective measures. It’s like a family reunion where everyone greets each other warmly, but no one dares to talk about the real problems.
But not everything is negative. These forums are also a meeting place that is very conducive to reflection. It is a space where ideas, experiences and perspectives can be exchanged on topics of common interest. Lessons can be learned, best practices identified and innovative solutions sought. Relationships of trust, cooperation and solidarity can emerge.
On the other hand, such forums also have symbolic meaning. In this case, they remind us that Latin America, Spain and the United States are a trio that we often do not value. However, it is a relationship we should nurture. We have a lot of history. And certainly a lot of future.
So while these forums are not a panacea, they should not be despised either. After all, they are an opportunity to get to know each other better, understand each other better and work together for a better world. Or at least try.
Do you want your country to be more like the United States or Europe, countries with democratic systems, developed economies and open societies? Or China or Russia, which are countries with authoritarian regimes, dependent economies and closed societies? The answer may vary depending on your point of view, but there are some arguments that could tip the scales.
In my opinion, Latin America would have more advantages over Spain and the United States than over China or Russia. Because? Because we have more affinities. We share values, principles and interests. We have a history, a culture and a language that bring us closer together. We are united by friendship, cooperation and solidarity.
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