Nearly two decades ago, in May 1994, Mexico became the first Latin American country to join the OECD. Not long after, in 1996, the secretary general of the OECD at the time, Jean-Claude Paye and the then Mexican minister of foreign affairs and current secretary-general, Angel Gurría, opened the OECD Mexico Centre. Initially, our job was to promote OECD publications in Mexico and throughout Latin America. But that mission has grown since, to include “disseminating, promoting and making accessible better policies, to governments, economic and social actors throughout Latin America, for better lives of their citizens”. 

Latin America is looking towards China and Asia–and China and Asia are looking right back. This is a major shift. For the first time in its history, Latin America can benefit from not one but three major engines of world growth.

Emerging markets such as China, India and Brazil are increasingly regarded as central rather than peripheral players in the global markets. Can this “rebalancing” continue through the current crisis?

Latin Americans’ access to telecommunications services has expanded fast since the early 1990s, with a telephone density now above the world average. Chile and Argentina lead the continent, with 90 and 82 telephone lines per 100 inhabitants respectively. Fewer, albeit wide, disparities still exist.

US Secretary of State Condoleezza Rice shakes hands with OECD Secretary-General Angel Gurría at the launch of a new multilateral initiative called the Partnership for Democratic Governance (PDG).The new initiative is designed to assist those developing countries that need help to improve governance, strengthen capacity and accountability, and deliver the services that are essential supports of effective government.

Latin America is back in the spotlight this year. The political climate is warming up once again, with major elections taking place in several countries. Economic prospects remain bright, as low interest rates and high prices of raw material exports bolster Asian-style growth rates, while China in particular sucks in huge quantities of soya, iron, copper, oil and gas. The emerging markets are awash in liquidity, with high yields attracting investors. Latin America has recorded three successive years of growth, its first such run in half a century and one that looks set to continue in 2006.

Fiscal responsibility is no longer a taboo in Latin America. Just look at Mexico. Once a country with burgeoning budget deficits, it is now a stable global economic player. But this OECD member is not the only example. New governments have been elected in Brazil and Chile, each promising fiscal rectitude.