Conference by Aldo Ferrer at SELA
The internal dimension of countries is fundamental
to accomplish economic and social development

Caracas, 12 September. Countries, especially in Latin America and the Caribbean, should pay more attention to their endogenous dimension than to external factors, as a means to accomplish economic and social development, said the renowned Argentinean economist Aldo Ferrer today.

"Development is, essentially, a process of national construction", said Ferrer at a conference held at the headquarters of the Permanent Secretariat of SELA on the topic "The process of globalization and the current Latin American situation", which was attended by the SELA Permanent Secretary, Chilean Ambassador Otto Boye, as well as representatives of the organization, Venezuelan diplomats and other political and economic personalities.

Ferrer, former Argentinean Minister of Economy, said that there is a number of outstanding economists in the United States and the European Union, "with an excellent academic level, who are warning that the endogenous dimension is fundamental, since there is no way to accomplish development solely on the basis of an unconditional adhesion to external developments. But these warnings are being discussed more intensively in the United States and Europe than in Latin America."

Ferrer, one of the most prominent Latin American experts on the topic of globalization, said that countries should try to reach a "balance" between their endogenous and international dimensions, in establishing their development policies.

The expert described the criteria that economic and social development should be based on the "spontaneous movement of markets" as a "fundamentalist vision of globalization."
According to this fundamentalist vision, "the only thing countries should do is to send friendly signals to the markets, because that would be enough to take the right path. Of course, it is necessary to send positive signals to the markets but that is not enough," he said.

"By trying to send good signals but implementing policies that aggravate its economic national reality, a country may definitely end up sending the worst possible signals instead," Ferrer said.

According to Ferrer, the best way for countries to attract foreign investors is to adopt internal policies to foster development, guarantee judicial security, expand markets and promote competition, among other things.

He stressed that those countries that are presently taking advantage of the benefits of the globalization process are those that have harmonized their governmental public policies and the private sector initiatives, and have been able to insert themselves into the international system while keeping control of their own destiny.

In Ferrer's opinion, the greatest challenge facing the Latin American and Caribbean countries is "to strengthen their democratic institutions through systems that ensure capital mobilization in favour of their societies, while keeping control of their own destiny."

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