SELA chief says Latin America faces its worst contemporary crisis

RIO DE JANEIRO, BRAZIL – Latin America and the Caribbean are facing the “worst economic and social crisis in their contemporary history” due to the pandemic, warned Thursday (22) the permanent secretary of the intergovernmental Latin American and Caribbean Economic System (SELA), Javier Paulinich, on the eve of concluding his term as leader of the organization.

“Latin America and the Caribbean are facing the worst economic and social crisis in their contemporary history; the pandemic and the actions implemented to contain its spread have highlighted the fragility of the economies of the countries of the region,” said Paulinich at the opening of the forum “A roadmap for the recovery of MSMEs [micro, small and medium-sized enterprises] in the region in the post-pandemic period”.

In his opinion, “the enormous challenges to guarantee the population their most basic social rights” have also become evident and “the consequences of this emergency situation are truly alarming.”

In this regard, he explained that in 2020 “it is estimated that more than 26 million jobs were lost” in the region and “22 million people moved into poverty”. “These figures show the major setbacks in terms of social conquests and the size of the challenges we face to generate higher levels of prosperity and better opportunities for all,” he added.

Paulinich commented that, at present, “and despite the fact that world economic activity is showing visible signs of recovery and improved prospects,” Latin American countries are experiencing “a slow process of reactivation with numerous risks and uncertainties.”

“To ensure a better performance of the countries of the region will undoubtedly require accelerating the vaccination processes, expanding the capacities of the health systems and formulating strategies to contain the expansion of the new virus variables,” he added, and affirmed that, above all, it is necessary to “demand the implementation of programs to support the productive fabric” and employment.

“In this field of action, favoring the recovery of MSMEs constitutes a task of the first order to promote inclusive and sustainable growth, facilitate social mobility and reduce poverty,” he stressed.

For this reason, he considered that the forum that began today should outline a “strategic north” that “guides the efforts to support” micro, small and medium-sized enterprises “in the short and medium term”.