Asian Lessons

Twice a year, the international financial community – which is made up of thousands of bankers and bureaucrats – comes together for a few days to network, listen to speeches, do deals and go partying. These annual gatherings are held around the meetings of the Inter-American Development in April and the International Monetary Fund in September. More to the point, discussions and negotiations at these meetings are often overshadowed by some catastrophic Latin American crisis. But it was clear at this year’s IADB meeting – which has just ended – that Latin America is of less and less interest to the outside world. Holding the meetings in remote Okinawa did not ease this sense of isolation. In a way, the lack of interest is positive: there are no crises on the horizon in Latin America. But instead of patting each other on the back, Latin Americans are agonizing about their irrelevance. Many bankers are going on to Tokyo, Shanghai, Beijing, Hong Kong, Taipei, Singapore and even Mumbai to hunt down investors or possible M&A clients. Ten or 20 years ago, Asia was mostly a backward region disconnected from global markets. Now, Latin America is falling behind Asia. The good news is that leaders, bankers and business leaders – once stunned into inaction by the rise of China – are reacting. Companies are becoming more international. Governments are sticking to sound economic and social policies. With time, growth rates may raise to 5%-6% a year. That would be a triumph for Latin America but mediocre in comparison with Asia.