Friday, December 28, 2007

The year of the environment is almost gone

Next to finish this year,there are three elements which has made the difference between what it was expected and what it was real.:
1.-At the beginning of the year 2007,there was some doubts about the importance environment issues would have.March 2007,marked a turning point when the "Unconvenient thruth" documental was awarded at the Oscar ceremony.It ignited a new focus on a subject most of the time, left for bureaucratic atention,instead of ordinary people and global media concern. It began the new focus, based on world public opinion now pushing hard for new policies and agreements.The Nobel prize award made the whole issue a matter of piece.Therefore, in the next months ,both Europe and the USA,made important contribution to move forward faster than expected. New emerging economies also stepped in, to a global consensus for a different approach on environment,following the expiration of Kyoto Protocol.

2.- The global economy has been stronger than expected to cope with unstability conditions.While the oil price is close to U$$ 100 a barrel,the 2007 year global growth is expected to be within the range of 4%- 5% .This does not mean to rule out complications ahead ,due to the implication of sub prime markets crisis.But the global economy has been resilient so far, which indicate a positive sign of strenghts.-

3.- The economic growth prospect for Latin America economies has improved, after the new Free Trade agreement between the USA and some countries such as Peru and Uruguay, (not considering Central America).However,Free Trade agreement effects turn out to be positive, as long as there is a proper institutional framework ,specially designed to take advantage from it,specially in the case of Medium and small size firms. Although inflation is back because food prices and energy cost increase,the reforms made in the nineties heavely focused on the macroeconomic and financial side of the economy, suggest it will be a transitory situation.