When it come to make the final balances of a year, it is usual to take notes of those events closely related to the daily news. After all, it is in the headlines that people ´s attention is focused on .However, let me consider from the economy point of view, both ,some facts and trends in the year 2005, which will stay over for some time before it elapses.
1.-Oil prices does not affects global economy ,as quickly as it did in the seventies.-
2.-Global trade is slowly moving toward a more balanced sharing of world markets opportunities.-
3.-China is the big global producer, USA is the big global consumer in the global economy, but Europe and Japan set the quality standards.-
4.- Latin America countries are moving to a different stage of mutual cooperation, based on its own autonomous capacities to support to each other. In other words, Latin America is becoming a political partner for global trade.-
5.- Latin America is moving to a “ Post Washington consensus” agenda , based on a new role (more restricted) for both markets and private sector , different economic priorities, and different sources of growth.
6.- Latin America does not depend as much on foreign aid as it was before. There are two new sources of regional funds:
a.- The income coming from relatives abroad which added up to MU$$ 40.000 in the year 2000.-
b.- The new local financial markets ,and its capabilities to sustain growth wit new sources of funds, such as bonds, allowing in the process, the allocations of capital to improves.-
7.- Chile is moving steadily to a higher level of development, based upon stable growth. Since 2003 the annual average rate of growth is 6%,and the forecast for the year 2006 is in the range of 5,5% - 6%.-
8.- Global warming, is becoming more an important variable for global business decisions.
So, was the year 2005 a good one?. A preliminary evaluation, indicates that this year was meaningful from the stand point of economic development. It was not a lost year. Global growth was higher than expected despite the oil shocks . What is going to be like the year 2006?. Some key elements :a.- The global economic institutions (WTO) are working its way to a new world markets set of opportunities for less developed countries. B.-Oil prices should stabilize to its long term trend level.-