ECLA Urges Effective Fiscal Policy
to Stabilize Latin American Economy
Santiago - The Economic Commission for Latin America (ECLA) of the
United Nations on Monday called for more effective fiscal policies
to stabilize the economic situation in the region.
The on-going global economic crisis "will decelerate economic growth
of the region and and possibly develop into a fiscal crisis in Latin
American and the Caribbean," ECLA executive secretary Alicia Barcena
said.
Dropping prices for row material could lead to the loss of 7 to 8
percentage points of the gross domestic product (GDP) between 2007
and 2009 for some countries in this region, Barcena said in a
seminar in Santiago on regional fiscal policy.
Barcena said that international financial institutions must work out
better mechanisms to support the emerging countries amid the crisis.
She suggested a series of measures to boost development, including
efforts to cut consumption taxes, promote private investment and to
ensure incomes for the most vulnerable groups.
Priorities should also be given to social expenditure and public
investment, as well as efforts to create jobs and boost unemployment
insurance, Barcena said. |
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