OECD calls for boost in China-Latin America partnership
Latin America should deepen and improve its development partnership with China, a new OECD report says.
The report, Latin American Economic Outlook 2016: Towards a New Partnership with China, published on Friday, states that, as ties between Latin America and China are evolving beyond just trade, Latin American countries are being “challenged to adopt specific reforms to boost inclusive growth.”
Reforms include productivity and innovation improvements, production diversification and investments in infrastructure, human capital and formal job creation.
The report argues that China is undergoing a deep socio-economic transformation that poses challenges and opens opportunities for Latin America’s development.
China is implementing an ambitious development agenda towards a ‘new normal’, which “implies a growth transition characterised by greater domestic consumption, demographic ageing, the consolidation of an urban middle class and a shift towards skill- and technology-intensive industries.”
China’s broader development strategy could affect infrastructure financing in Latin America, since the region will be one of its investment priorities going forward, the report says.
As Latin American governments are looking for ways to remain competitive in and attractive to China, exploring innovative productive development policies to boost economic diversification of Chinese domestic consumption may open new opportunities for Latin American exports in foods, services and tourism, the report says.
Ultimately, it says, “building a China-Latin America partnership for development would be mutually beneficial, but requires global governance: China’s transformation could fuel growth in times of economic slowdown in Latin America.
“Yet, the region requires better regulations, stronger government capacities to develop bankable projects, environmental sustainability and a stronger commitment to transparency and good governance to make the most of China’s transformation.
“China would benefit in this new relationship by maintaining Latin America as a reliable source of commodities, a sound market for its exports and an attractive destination for diversifying its outward investment.”
Overall, it says, China needs to “understand Latin America’s development challenges as a whole and dialogue with a coordinated region to further sustainable growth goals.”
About Winnie Agbonlahor
Winnie is news editor of Global Government Forum. She previously reported for Civil Service World - the trade magazine for senior UK government officials. Originally from Germany, Winnie first came to the UK in 2006 to study a BA in Journalism & Russian at the University of Sheffield. She is bilingual in English and German, and, after spending an academic year abroad in Russia and reporting for the Moscow Times, Winnie also speaks Russian fluently.
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