Lecture of Enrique Iglesias, the Ibero-American Secretary-General, at the Faculty of Law, Ljubljana

The lecture was organized within the framework of the Spanish EU Presidency.

The SG Enrique Iglesias emphasized that the role of emerging markets is increasing, which was exposed by the current crisis. Furthermore, the crisis demonstrated that the neoliberal paradigm “Markets know best” is not valid anymore. In contrast to the US and Europe, Latin America has not suffered much. New economic models are being discussed but the question is whether the world can accept them and whether we can make globalization work for all.

Protectionism is not a trend in Latin America at the moment and hopefully the developed countries will not resort to it. Latin America has in the last 10 years progressed significantly this is mainly due to the following three reasons:

- Disciplined microeconomics

- High prices of commodities and strong economic growth in Asia

- Successful structural reforms

Central American countries and the Caribbean have suffered more because of their strong dependence on the US economy, remittances and tourism. South America has benefited from high commodity prices and strong economic growth in Asia.

It is a great opportunity for Latin America to make a major step forward. Nevertheless there are five challenges ahead of it:

1. Necessity to continue structural reforms (fiscal, social and labour reforms)

2. Increase the role of the state

3. Improve infrastructure

4. Human resources – although education is accessible the quality is still relatively low and needs to be improved

5. Regional integration and cooperation – the EU is an inspiration but its model cannot be implemented in Latin America