Ecuadoran President Rafael Correa stated that CELAC-EU cooperation should be orientated towards fostering human talent, technology transfer and access to financing, on June 10 in Brussels, according to reports from Prensa Latina.
Speaking at the Business Summit of the Community of Latin American and Caribbean States (CELAC) and the European Union (EU), he stressed the importance of moving from being producers of primary goods to societies that produce knowledge.
Correa, whose country currently holds the rotating presidency of CELAC also considered it essential to promote companies distinguished for their innovation, for which the support of states and public policy is required, in order to gain access to international markets. Financial and technical assistance policies should be integrated, Correa added.
Within the framework of CELAC-EU cooperation, the idea was launched of creating a fund for production restructuring of micro, small and medium enterprises, he explained.
The President of the South American nation referred to the problems of productivity in Latin America, where micro, small and medium enterprises are very heterogeneous and face difficulties in accessing international markets.
They are fundamental to the economic and the social spheres and important to national economies and larger firms. Their financing is thus a basic condition in order to encourage their development, in which the role of public banks is essential, he said.
In his opinion, Latin America and the Caribbean face the challenge of internationalizing their micro, small and medium enterprises. They must promote innovation, production and technology transfer processes.
He also considered it important to provide technical assistance for production restructuring and innovation.
Identifying the goal of achieving economic and social efficiency, the Ecuadoran President noted that in this regard the ethical treatment of workers is vital, to ensure human beings are positioned above capital.
Correa referred to the need to eradicate poverty in Latin America and the Caribbean, noting that this is a moral imperative and should be considered as such for all humanity, not only because poverty constitutes the biggest attack on human dignity, but also because it is a result of injustice and exclusion, not a lack of resources.
He insisted on the creation of productive and stable employment as a way to contribute to the battle against poverty. Human work has an ethical value; it is the very purpose of production. Salaries should provide a decent livelihood and dignity, he added.
There can be notrue freedomwithout justiceand to achieve justiceand efficiencyanadequatedissemination of knowledgeand skillsand effectivestate intervention are required,he said.
Earlier, EU High Representative Federica Mogherini stressed that the links between the EU, Latin America and the Caribbean, “go beyond economic relations and trade,” and there also exists, “a political dialogue and cooperation on multisectoral issues,” as reported by Efe.
Mogherini recalled that the twenty-eight EU member states are “the chief foreign investors in the region” and noted that Latin American and Caribbean investment in Europe has also increased.
She indicated that the Latin American and Caribbean region has seen growth of 5% in the last decade and that, “the challenge now is to maintain this growth (...) and to move from a model based on the export of natural resources, to a knowledge-based model.”
“We have much to gain from joining forces and exploring complementarities between our economies and Europe is ready to lend a hand. Due to the friendship that unites us and our mutual interest,” she concluded.
A GLANCE AT ECONOMIC RELATIONS
According to the document, “The European Union and Latin America and the Caribbean in the new economic and social context,” prepared by the Economic Commission for Latin America and the Caribbean (ECLAC) for the CELAC-EU Summit of heads of state and government, bi-regional trade came close to 265 billion dollars in 2014, having reached its maximum level of 278 billion in 2013.
EU countries as a whole represent the second largest trading partner of the region, after the United States, although exports to Europe fell from 24.6% (of total exports) in 1990 to 13.6% in 2011, according to Prensa Latina.
Further economic indicators demonstrate that the Latin American and Caribbean region is one of the chief destinations of European investments. In 2011, foreign direct investment (FDI) by the European bloc in the region reached 153 billion euros, up 28% compared to 2010 and a new historic record, according to the ECLAC official figures.
Meanwhile, Brazil remains the largest recipient of foreign direct investment in Latin America and the Caribbean followed by Mexico and Chile.
In general, trade with the EU has remained stable since 2000. However, after the explosion of the international financial crisis in September 2008, the development of bi-regional commercial exchange was greatly affected.
