Past events

This event aims to identify mechanisms to address the difficulties that impede increased trade between our regions, including logistical and regulatory issues, as well as problems of awareness of the existing opportunities.

The Latin American Council is the highest decision-making body of SELA, made up of one representative of each Member State, which meets annually and is in charge of establishing the general policies of the organization. The sessions of the XLVII Regular Meeting of the Latin American Council of SELA will be held at the Permanent Secretariat headquarters in person and online via Zoom. The Preparatory Stage will start on Monday 29 November 2021, at 10:00 a.m. The Ministerial Meeting will be held on Tuesday 30 November 2021, at 11:00 a.m. (Venezuela’s time).

The Latin-American and Caribbean Economic System (SELA) in collaboration with the Association of Caribbean States (ACS), the Digital and Collaborative Port Networks and the Port Management Association of the Caribbean (PMAC), will organize a Virtual Seminar on the Port Experience in the Caribbean on 25th-26th October, 2021. One of the main objectives of this seminar is to improve port management and operational efficiency within the region. The supply chain disruptions and recurring bottlenecks in ports that resulted from the pandemic demonstrate the inefficiencies in the sector, so it has become a challenge to maintain the fast, efficient and profitable movement of cargo in a cost-effective manner. On the other hand, the health and economic crisis caused by the pandemic has also heightened interest in Public-Private Partnerships (PPP), specifically those related to infrastructure and transport services. The challenge is to generate the economic, financial, technical, and regulatory conditions that allow maintaining these partnerships, collaboration, and cooperation between sectors. Global trends and the need for a robust and innovative transport system require significant capital-intensive investment. In that sense, public-private partnerships (PPPs) represent potential mechanisms to support the development of ports in the region. Research has shown that PPPs, which combine the capabilities of the private sector with the social responsibilities of the public sector, can make a significant difference in the development of a sustainable transport system. Within this framework, PPP becomes critical for effectively managing port operations especially within the context of a rapidly digitizing world. With this new drive for digital acceleration including the employment of innovative tools, methodologies, and technologies, having the right resources must be a key pillar for port development within the region. It is therefore crucial to develop the capacities for effectively maintaining these relationships and harnessing the resources made available through these relations. In this sense, this virtual seminar will focus on building awareness and capacity to effectively utilize PPP as a tool for port management efficiency. Together with this, it will highlight best practice examples and innovative procedures used by Port Authorities in the region to manage ports and facilitate trade. This event will constitute a platform for dialogue and a space to share ideas, lessons learned and experiences that will improve the port environment of the region and promote regional integration.

Social Protection networks are a set of public policies aimed to protect the population before social contingencies, which appear during life cycles. These networks have the potential to shield the social and economic welfare through money transfers, as social benefits which are subject to a specific social security regime and as focused or conditioned programs, additionally to in kind transfers or social services. As an example, before the current COVID19 pandemic, social protection networks materialized as programs directed to protect the incomes of households through emergency bonds, the expansion of health services coverage, the exemption of payments for social services, among others, have been decisive for the resilience of homes in the region. Latin America and the Caribbean are exposed to multiple threats of natural origin. In the last two decades, there have been registered 1,032 natural disasters, which have affected 155 million of people. Therefore, it is urgent to boost the resilience before natural phenomena in the region, due to its high levels of inequality and poverty, which are associated to higher vulnerability and exposition to threads. In this sense, it is essential to boost and consolidate social protection networks in the whole Latin America and Caribbean region, in addition to expand the social contingencies to the impacts caused by natural phenomena and climate change related events. For this, it is required to have institutions prepared to operate and respond to emergency situations and disasters, accordingly to social benefits and services offered by them. Social Security institutions are essential for social security networks, during disasters events. Sendai Framework 2015-2030, establishes as a priority to invest in disaster risk reduction for increasing resilience, which demands to promote the development of protection networks, tied to programs of livelihoods improvement. Today, social security coverage is limited in our region. As an example, almost half of the working population do not contribute to the retirement pension system; however, the coverage is extended by universal pension, health services, education, in kind and money transfer programs, directed to household on poverty and extreme poverty situations, pregnant women, children and people with disabilities; to wit, different mechanisms of protection networks complement each other, so the social security system needs to adapt in front of disaster risk. Therefore, the development of social protection networks entails the generation of technical and logistical capacities to secure, in theory, the timely and appropriate delivery of social benefits and services at any time. Social and economic resilience of the region depends, somehow, on the better preparedness of social institutions before disasters, based on continuity of operations, prioritization of substantial functions, and the execution of emerging programs to protect the affected population and in vulnerable situation.  

Corruption is a social, political and economic phenomenon that affects all countries of the world, a reality from which the Latin American and Caribbean (LAC) region does not escape. Its serious consequences affect the productive structure and the social and economic development of countries, as well as the stability of democratic institutions and the rule of law. In many LAC countries, corruption is seen as an inevitable consequence of the exercise of power. Causes of this endemic evil are varied, but institutional weakness, opacity in the management of resources by the public sector, and the apathy of the population to defend its interests stand out. In recent years, corruption has reached alarming levels and various forms of manifesting itself. Its modalities penetrate the public and private sectors in the form of bribery practices, fraud, illicit enrichment, influence peddling, diversion of resources, nepotism, even the use of privileged information for personal purposes, among others. In the case of the public sector, it manifests itself mainly in the areas of public procurement; public infrastructure; state-owned enterprises; customs administration; and public services, according to the World Bank (WB).[1]  The impacts of corruption are universally known, but when it involves State sectors, such as public procurement and infrastructure, its implications are more serious for low-income countries because of their impact on gross domestic product (GDP). Contracts without tenders, the absence of competitors, excessive cost overruns of time and money, little or no maintenance, unfinished monumental works, and the low quality of completed works end up adversely affecting economic growth, poverty alleviation, and private investment, in particular investment by multinational companies increasingly subject to international competition. The preferential treatment by the State also generates serious consequences. The management of funds for direct and indirect subsidies, debt repayments and tax exemptions and compensations are abused to meet non-commercial objectives, which can be diverted for personal or political benefit. Such is the case of bankrupt state-owned enterprises that often enjoy easy access to non-profit loans by state-owned banks to mitigate the damage caused. Corruption in customs is no different. A country's ability to benefit from the global economy is affected by delay in processing imports and exports. It also acts as a disincentive for foreign investors by increasing the costs of doing business and reducing the competitiveness of companies. No less important are the effects of corruption on the provision of services that should be guaranteed by the State. Public management and the administrative functioning of the State are eroded when the normal course of administrative procedures for obtaining a public service is altered due to a bribe.  The complexity of this scourge demands integrated responses. The international community has made efforts in this regard by first adopting the Inter-American Convention against Corruption (1996), the first international legal instrument in this field that recognizes the international importance of corruption and the need to promote and facilitate cooperation among States. Subsequently, the United Nations Convention against Corruption (2003), a legally binding international anti-corruption instrument, was adopted. However, the edges of corruption are so diverse that these tools have not been sufficient to achieve a lasting solution. More than stepping up international cooperation is needed to successfully implement the main areas of such an instrument, namely prevention of corruption, penalty and law enforcement, international cooperation and asset recovery. Beyond identifying the best practices of some countries that contribute to the design of global strategies and the institutional strengthening of the capacity to respond to this problem by improving the role and effectiveness of anti-corruption agencies, tax and audit administrations and justice systems, governments are obliged to implement public policies that attack the root of the problem and its devastating effects on the productive structure and on the society. Governments face many challenges in addressing corruption, such as identifying what instruments usually work and why. It is not only a matter of having solid institutions and creating legal frameworks aimed at prosecuting and penalizing those who misuse public resources, but also of achieving greater public transparency, better government management, citizen participation and social inclusion. Of equal importance is to provide governments with technological tools that enable them to promote reforms that lay the foundations for government management in a spirit of transparency, integrity, inclusion and collaboration. The global digitization of governments and citizens must be deepened to change the face of public sector governance and its effects on the fight against corruption. Access to information and better collaboration between the State and society are key tools for achieving this purpose. The lack of information on the budget and the administrative management of public resources prevents social control of activities and results of governments, thus facilitating the conditions for corruption. In this context, the economic and social development of Latin America and the Caribbean requires strategies that promote citizen participation and their active collaboration in the formulation of specific public policies that meet their needs. The progress made in these areas will depend on the tools adopted. Strengthening the institutional capacity and the rule of law in the region are fundamental elements in the fight against impunity for acts of corruption. Promoting the adoption of technology and innovation for monitoring public resources, as well as increasing the resource mobilization of international financial institutions can make a difference in this regard. The use of information and communication technologies are also monitoring tools that strengthen the notion of transparency and accountability by promoting administrative simplification, which reduces opportunities for corruption by avoiding contact with public officials with discretionary behaviour in administrative processes. In conclusion, the social and economic consequences of corruption adversely affect the development of countries. On the one hand, they generate losses in productive growth as a result of the misuse of public resources or the concentration of these funds in corrupt hands. On the other hand, they produce social inequality, insofar as sectors of the population linked to the highest political spheres with access to the administration of State resources are favoured. Among the impacts of corruption on the various structures of the countries, the following stand out: Undermining investment and worsening poverty. Distortion of incentives for local or foreign private investment, which reduces economic efficiency and consequently long-term production. Over-investment by government in capital projects due to the ease of capturing revenue from public procurement and reducing the return on investment. Deterioration of the business environment in the private sector. It is preferred to invest in activities with rapid and excessive profits in a short time rather than purely productive ones. Lack of vision and innovation in the business sector. The production of companies does not depend on their competitiveness but on their ability to influence decision-makers regarding the regulation or destination of their productive activity. Development of monopolistic or oligopolistic structures in the markets, where usually the same group of companies is favoured in the allocation of contracts. Capital flight to the extent that profits from corrupt activities are deposited abroad or are associated with relaxed anti-money laundering procedures. Provision of poor infrastructure, which increases the risks of accidents and costs of wear, as well as the payment of additional taxes on citizens. Curbing innovation and creative development by unprotecting intellectual property. Companies paying bribes to maintain their competitiveness, with either tariff reduction or exemption or subsidized credits, stop investing in patents or operating permits. Social and political distortions. Societies can face a loss of values by seeing this type of activity as natural. They can also seriously affect their political systems by penetrating them in the search for accomplices. Diversion of resources. Part of public expenditure is earmarked either for the fight against corruption or for the exploitation of corrupt activities, rather than activities for more socially productive purposes such as education and health. Significant decrease in government revenue collection. The World Bank estimates that 30% to 50% of total tax revenues in developing countries are affected by corrupt practices. Impact on customs administrations in terms of trade facilitation and border protection, including the compromising of security requirements for the trafficking of illicit goods, including weapons and narcotics. High cost to society. The taxpayer who agrees to pay bribes pays for inefficiency in the provision of services, and several times for the same service. Harm to the consumer. When corruption becomes necessary to acquire a productive input or avoid minimum quality controls, markets receive goods and services in insufficient quantities of lower quality or more expensive. [1] (http://documents.worldbank.org/curated/en/986521600118147288/Executive-Summary)

Prior to COVID-19's emergency, the economic performance of Latin American and Caribbean countries showed visible signs of slowdown as a result of stagnant productivity levels, deteriorating competitiveness and an unstable international context. With the emergence of the pandemic, challenges have multiplied and the region is facing the worst crisis in its contemporary history. This is demonstrated by the figures of international organizations, which also project a recovery below the global average for 2021 and warn of the threats of a new lost decade for Latin America and the Caribbean. In their efforts to contain the immediate effects of recession, countries have combined economic and health actions using their limited available resources. However, in order to avoid the realization of its long-term consequences, it will be necessary to undertake immediately an agenda of structural reforms that are the result of new economic and social pacts. As part of these transformations, promoting the recovery of micro, small and medium-sized enterprises (MSMEs) represents a major task in rebuilding the business fabric and driving inclusive growth. These productive units are a central component in the economic and social fabric of the region. They make up the vast majority of companies, are providers of a significant portion of goods and services, generate the highest proportion of employment, and are the main source of household income. In addition, MSMEs expand the range of options for the workforce with low levels of training and fewer opportunities, becoming a mechanism to accelerate intergenerational mobility, reduce poverty, and strengthen social cohesion. In view of their relevance, smaller companies have been a clear priority in the strategy-making process to boost the region's economic performance. However, the results have not been as expected and gaps with large companies have widened as a sign that barriers limiting their birth and development remain. In this regard, emphasis should be made on three of the main challenges facing the region. The first is the growing informality that most vehemently affects the most vulnerable. Its persistence has strong social implications by restricting access to social protection systems and significant economic effects by reducing tax collection and the efficiency of productive factors. The second refers to difficulties in accessing formal sources of funding. This prevents the development of ventures with wide potential for success, hinders innovation and export decisions, and reduces opportunities for business survival during periods of crisis such as the current one. Finally, it is necessary to support the digital transformation of MSMEs as a catalyst for productivity and their insertion into value chains. The adoption of digital technologies can be especially useful in modernizing processes, expanding trade links and increasing production scales. Working on overcoming these constraints is a step in the right direction and would result in large economic and social benefits for the region. However, this will require greater collaborative work and the formulation of new arguments and recommendations that guide actions. In this regard, and in the context of these three challenges, the Permanent Secretariat of SELA undertakes the organization of this meeting with the central objective of building a roadmap to guide efforts to support MSMEs in the short and medium term, strengthening synergy and coordination among actors living in the region.

In the exercise of their public functions, state administration bodies are subject to the free competition legislation of countries. While the actions of public organizations that are expressly governed by law do not constitute an anti-competitive conduct per se, they are not exempt from legal scrutiny in situations where they exceed their powers by making decisions that may affect free competition in markets. In addition, in exercising their functions, public services have a constant and important interaction with economic operators. Therefore, many of their decisions can have an impact on competition in the markets in which those actors participate. Thus, it is vitally important to discuss the reasonableness of the elements that underpin the decisions of public organizations, as well as the potential effects that they may have on the good performance of the competitive process. Moreover, public sector bodies should ensure that their actions (rules or administrative acts) do not distort free competition in markets, thus ensuring that their decisions are based on criteria of free competition and adopting sufficient preventive measures to understand and manage the risks of free competition in the public sector. Accordingly, the need arises for the Latin American and Caribbean Economic System (SELA) and the Free Competition Program of the Pontifical Catholic University of Chile to unify efforts and train public organizations whose decisions have a direct impact on markets of paramount importance to society (e.g., telecommunications, health, public infrastructure). To that end, an online training is proposed for managers of public organizations in Latin America and the Caribbean.

Note by the Permanent Secretary In accordance with paragraph 2 of article 15 of the Panama Convention, the Latin American Council has the function to elect the Permanent Secretary for a period of four years. The current Permanent Secretary, Ambassador Javier Paulinich, was elected by acclamation in June 2017 and took office on 1 August of the same year. In this regard and in accordance with the Agenda for this meeting, the Latin American Council should elect a new Permanent Secretary for the period 2021-2025 at its XIII Special Meeting, to be held face-to-face and virtually on 21 June 2021. The Permanent Secretariat is pleased to inform the Member States that, to date, only the nomination of Dr. Walter Clarems Endara Vera to the position of Permanent Secretary of SELA has been submitted by the Minister of Foreign Affairs of the Plurinational State of Bolivia, through Note VRE.DGRM-UPOI-Cs_508/2021 dated 1 June 2021. This document contains the articles of the Panama Convention concerning the election of Permanent Secretary, as well as the nomination note submitted by the Government of the Plurinational State of Bolivia of Dr. Walter Clarems Endara Vera.

Emergencies and natural disasters or from anthropic origin could provoke the interruption of public institution and society operations, demonstrating the vulnerability of government operations, provision of essential public services (water, energy, communications) and protection of population in vulnerable situations. In this context, COVID-19 pandemic reinforced the need of improving strategic and operational plans to face potential catastrophic events of this kind. In these circumstances, it is desirable that countries have public policies directed to address these adverse situations, securing the stability and continuation of public institutions and the provision of public services to affected population in vulnerable situation. Social and economic costs of damages from natural disasters are usually a heavy burden for the economy of our countries. Social and economic development of our region could be hampered because of natural disasters, especially if countries do not adopt policies to mitigate their negative impacts. For this reason, the concepts of Continuity of Operations and Continuity of Government are outlined as useful public policies to mitigate the effects of risk situations. The concept of Continuity of Government (COG) sets up protocols, procedures and legislation, which helps countries to secure their essential operations in circumstances of catastrophic events. On the other hand, Continuity of Operations (COOP) concept contributes to secure the functioning of public institutions and society before a crisis situation or facilitates the immediate restoration of substantial activities. Experience shows that in the region of Latin American and Caribbean it is required to strengthen the protocols, procedures and legislation to secure the Continuity of Government in case of breakup of the command chain and governance, and the provision of essential public services. It is equally important to keep the cooperation and coordination among local institutions inside the country, and with neighbouring countries at the outside, in order to maintain the operation of governmental institutions, the support to private sector institutions, and the provision of public services to their citizens, especially health services. Continuity of the Government concept emphasizes the importance of readiness and response before disasters, as rescue and salvage operations, and medical care of victims. At the same time, It is stressed the need of restoration of crucial and essential public services and the maintaining of public safety and order, for which it is decisive to have a basic level of continuity of operations and institutionality that allows the functioning of public and private organizations, in order to avoid the collapse of the State and its public institutions and to ensure that private sector can support and complement recovery actions. These scenarios will demand the existence of protocols to make sure that officials and authorities are capable to assume their roles during the emergency and could anticipate alternative posts, endowment of equipment, and fast access to required communications and technology and the protection of vital governmental information. Readiness of social protection institutions, and social security institutions too, before catastrophic situations, is imperative to guarantee a basic level of protection and welfare among the population. For this reason, plans and protocols of COG and COOP must include the social services and benefits institutions, in order to boost a fast economic and social recovery of a country affected by natural disasters. The response to situations of emergency and disaster must be comprehensive. The process of planning, strategy and assistance requires strategies that facilitate and secure the operative and institutional continuity of social actors and institutions, in order to deal address the risks. These elements are expressed in protocols or operation plans.  Elaboration of Protocols ensured that institutions are in capacity to identify their critical functions and essential tasks; that authorities and officials are capable to assume their roles during the emergency, and they know their interdependence with other organizations, especially from the private sector; and to define which positions will assume the authority delegated by the institution´s leadership, in order to address specific tasks. Planning process ensures the functionality of a country, protects their economic stability and provides a comprehensive public safety level to the population. On the other hand, social protection tries to guarantee that population is able to satisfy its basic needs, through financial resources or specific services. The essential purpose of any social protection institution is to protect the population and to make secured and resilient communities, capable of deal, operate and recover from adverse situation, for which it is imperative the readiness of this key sector. In conclusion, governmental institutions must maintain their response capacity before catastrophic situations. For this reason, it is imperative to establish public policies which include advance foresight and the reduction of elements of surprise on unfavourable incidents, mainly in social security and protection, which is closely linked to governments but to the private sectors too. The institutions will be better prepared to deal with disaster situations if they already count with programs and protocols.