The difficult economic situation in the U.S., Spain, Italy, and the statement by the director of the IMF of a possible recession, Latin America put on alert.

Statements by Christine Legard, director of International Monetary FundOn the possible global economic crisis, because of the recessive behavior in the economy of European countries such as Spain and Italy, as well as the strong U.S. economy, which again passes through a critical and it continues this way, have to face a crisis as profound as that of 2009.


The latest economic developments in the U.S. Spain and Italy

The indicators of economic activity in European countries and the United States have been generated concern and investor confidence. Both the stock market performance in the generation of employment and quality of life for its citizens, who have endured budget cuts and new taxes, which are indicative of an atmosphere of global impoverishment.

At present, we can not speak from rich countries where its citizens live in full prosperity or welfare state, the demonstrations in London vandalism corroborated, nor is the case in earlier times, where it could be noted by companies owned by unmindful consumption, ignoring other socio-economic crisis in other regions.they departed from the geopolitical problems, interested in them, only to the extent that their interests were affected.

In the case of Europe, has returned the crisis that began in Greece at the time seemed to be controlled by the intervention of the European Economic Community, this time, there is an economic slowdown that prevents the creation of jobs and the longed maintenance of the social welfare state. This happens in countries as strategic for the European and world economies such as Spain and Italy.

By mentioning the above countries, speaking approximately 108 million people concentrated in the richest area in the world, to keep the recession and the fall in stock exchanges in the world, one can assume a “domino effect” that falls on stronger economies such as Germany, France, England.In the case of U.S. speaking of 9% unemployed, equivalent to about 14 million. It should be noted the failure in recent months to pay fees timely debt. In this scenario be Dante, Latin American economies will also be seriously affected.

Possible socio – economic impacts for Latin America

According to Francisco Rojas Aravena, Secretary General of FlacsoIn the V report is entitled: Financial Crisis: Building a Latin American policy response (2010). The report identifies a number of consequences resulting from the financial crisis playing equally economic and social development, also in this report suggests measures to mitigate the recessionary effect, likewise, promotes economic integration and development domestic markets, strengthening the bonds of work and cooperation in the region.

The global depletion affects all countries of the Americas in varying degrees, depending on the type of economy, and the particular characteristics of the trade that each country has with international markets.

The economic consequences are straightforward:

1. Falling prices of exports.
2. Decline in GDP.
3. Rising unemployment.
4. Fall of the exchange.
5. Difficulty in accessing credit.
6. Falling remittances.
7. Lower investment.
8. Minor development.
9. Increased protectionism.
10. Most significant asymmetries in the FTA.

The above consequences negatively impact the core of social development:

* Increased poverty and stagnation.
* Inequality.
* Democratic crisis.
* Demands on the state.
* Political and ideological tensions.
*Few democratic governance.

The Regional Coalition Agenda as an antidote to crisis

The report puts the Flacso consider a Regional Coalition Agenda (ACR) in order to prepare the economy of the Latin American regions at the scene of a possible global economic crisis, and thus mitigate the consequences and impacts mentioned, in turn, strengthen the region as a territory of strategic partners for the socioeconomic growth.

The main obstacle to an ACR is to achieve coordination and implementation of a joint vision of Latin American countries can be a starting point for negotiation block the reorganization of the global economy in its new stage of negotiations as it is the G20. The best way for Latin American countries is the integration, an integration that will lead to the strengthening of the domestic market.