COC

rbw/center-concern-and-institute-applied-economic-research-host-workshop-brazil

Center of Concern and Institute for Applied Economic Research Host Workshop in Brazil

Rethinking Bretton Woods | Tue, Dec 3, 2013

By coc

Rio de JaneiroAt a recent meeting co-hosted by the Center of Concern (Center) and the Institute for Applied Economic Research (IPEA), international economists and policy makers assessed new and existing South-South initiatives for monetary and financial cooperation. The Center’s Director of Rethinking Bretton Woods Project Aldo Caliari offered the global financial crisis of 2008-09 as context for increasing the urgency of South –South economic cooperation.

December 2, 2013

Center of Concern and Institute for Applied Economic Research Host International Workshop to Strategize South –South Financial and Monetary Cooperation

International economists evaluate strategic initiatives for South –South regional cooperation both at inter-regional level and at intra-regional level, to forestall human costs in future financial crises

Rio de Janeiro — At a recent meeting co-hosted by the Center of Concern (Center) and the Institute for Applied Economic Research (IPEA), international economists and policy makers assessed new and existing South-South initiatives for monetary and financial cooperation. The Center’s Director of Rethinking Bretton Woods Project Aldo Caliari offered the global financial crisis of 2008-09 as context for increasing the urgency of South –South economic cooperation.

Caliari says, “Recent global financial crises drive home the importance of paying attention to diversity not just in trade relations, but also in development finance institutions, in mechanisms for crisis lending, and even currencies for trading, so when a shock affects the main currency of trading in the world, the U.S. dollar, the impacts can be mitigated.”

Participants warned of the impacts of current economic conditions of excessive financial liquidity on countries of the region. Caliari says, “We are called to act with urgency to strengthen cooperation and prepare for a scenario that could include the Fed’s move to reverse its monetary easing policies. The results of such a reversal could instigate a situation of capital flight, and research shows that for the loss of every dollar of foreign inflows, four dollars of domestic capital leave, too.”

Growing interest in South –South economic cooperation reflects improved economic conditions and greater economic power experienced by Southern countries, prompting them to wield a more assertive attitude in international affairs. Brazil, being the largest economic power in the region is called to play a leading role not only in within the Latin America region, but also in terms of inter-regional cooperation. “South -South cooperation is no longer between vulnerable countries, but between strengthened countries that are now asserting their weight in the international stage,” said Luiz Balduino of the Brazilian Ministry of Foreign Relations. “In this regard, South –South arrangements, intra- and inter-regional can play a crucial role.”

Center of Concern’s Rethinking Bretton Woods (RBW) project was founded in 1995 to promote reforms of international financial institutions—such as the World Bank and the International Monetary Fund. Over time, its focus has evolved to promote reform of the international financial system, its rules and institutions, with the purpose of democratizing economic policy-making, achieving human rights and sustainable development.

The project carries out advocacy-oriented research, popular education and coalition-building engaging government and intergovernmental officials, policy-makers, civil society organizations, academics, grassroots activists, social movements and the public. It works closely with partner organizations in the U.S., Europe, and all the regions of the Global South.

Since 1971, Center of Concern experts have contributed research, education, and advocacy from Catholic social tradition in order to create a world where economic, political, and cultural systems promote sustainable flourishing of the global community.

###