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Building a Stronger Latin America in the Global Economy
São Paulo, Brazil 5-6 April 2006
Outcomes:
Post-summit report
 São Paulo ends with focus on education and infrastructure
Lula calls for Latin America to seize the moment
Latin America poised to lead global development of biofuels
Business tackles inequality in Latin America
Upbeat message given on the future for Latin America
How to turn the challenge of China into opportunity
Managing global and regional risks
Thursday 6 April
 São Paulo ends with focus on education and infrastructure—At the closing session of the World Economic Forum on Latin America, Jorge Gerdau Johannpeter, President and Chief Executive Officer, Gerdau, Brazil, concluded that, “education is the most important investment that we can make.” After reviewing a list of ‘Priorities for Action’ in the region, participants agreed with him that education should be the main focus over the next year.
Session summary I Press release I Action Plan
 Lula calls for Latin America to seize the moment—Luiz Inacio Lula da Silva, President of Brazil, outlined an optimistic scenario for Brazil and Latin America and called for the countries of the region to seize the moment. “The problem with South America is that we have looked to the United States and Europe and admired their wealth, and we have looked to China and admired its growth, but we haven’t thought about what we should be doing ourselves,” he said.
Session summary
 Latin America poised to lead global development of biofuels—Latin America is well positioned to become a global leader in biofuels and renewable energy, and the United States and other countries are keen to explore partnerships in the region to develop them.
Luiz Fernando Furlan, Minister of Development, Industry and Trade of Brazil, said that there are at least 50 examples of new investments in sugarcane for biofuel currently being implemented in Brazil. “There may also be possibilities for joint ventures,” he said.
Press release I Summary
 Business tackles inequality in Latin America—The road to effective social progress will probably involve less philanthropy and more action, said participants in this session. Private business must be interested in share value but also in "shared values" as part of their social responsibility obligations. "Business can no longer survive in a failed society," said Ivan Zurita, Chief Executive Officer, Nestlé Brasil. "I don't believe in the future of food companies if we don't eliminate poverty," he said.
Summaries
Wednesday 5 April
 Upbeat message given on the future for Latin America—World Economic Forum participants heard a message of optimism for the future of Latin America, with many countries today said to be in a vastly stronger economic situation than at the start of the 90s, and democracy itself no longer in question. However, to maintain its advantages and to maximize its potential, the region must pay close attention to the quality of government.
“Thirteen presidential elections in one year would naturally create a certain climate of political uncertainty,” said José Miguel Insulza, Secretary-General, Organization of American States (OAS), Washington DC. “People wonder what a new government will do, if it will have the support of congress, and if it will do what it promised.” However, he said, that was different from doubts about the solidity of democratic systems.
Press release I Summaries
 How to turn the challenge of China into opportunity— Business leaders and analysts at the World Economic Forum on Latin America agreed that China is both a challenge and opportunity for Latin America.
The fast-growing Asian giant is an increasingly open market and a formidable manufacturing and trading powerhouse. China needs the natural resources that Latin America has in abundance. The challenge for Latin America is to restructure its manufacturing base and invest in the technology needed to produce higher value-added goods and services to enable the region to compete.
Mauricio Mequita Moreira, Senior Trade Economist, Inter-American Development Bank, USA, noted that there are huge opportunities in China for Latin America in natural resources, but said that “agricultural tariffs are too high, and non-tariff barriers are blocking Latin America from gaining a greater market share”.
Summary I Press releases
Managing global and regional risks—Social and economic inequality emerged as the consensus choice for the key risk facing Latin America. Compared with global rankings, participants tended to give greater priority to inequality, corruption and organized crime. In turn, they tended to downplay China as a threat, except to Mexican industry, and to show less concern for international terrorism.
Summary I Global Risk Network
Co-Chairs
Jorge Gerdau Johannpeter, President and Chief Executive Officer, Gerdau, Brazil
Luis A. Moreno, President, Inter-American Development Bank, Washington DC
For more information, please contact LatinAmerica@weforum.org
www.weforum.org/latinamerica
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