Regional Industry Consultation in Latin America and the Caribbean

1
Programa de las Naciones Unidaspara el Medio
Ambiente
Programme des Nations Unies pour
lEnvironnementUnited Nations Environment
ProgrammePrograma das Naçoes Unidas o Meio
Ambiente
Regional Industry Consultation in Latin America
and the Caribbean
Dr. Diego Masera Regional Industry Programme
Co-ordinator
Oficina Regional para América Latina y el
CaribeRegional Office for Latin America and the
Caribbean
Brazil, October 2001
2
Economic Growth in Latin America and the Caribbean
1950-1980Import Substitution Model
(ECLAC) Growth more than 5on average, annually

• 1981-1990The Lost Decade
• Growth less than 1 percent annually
• External debt crisis
• 200 million people in poverty
• Introduction of the model based on the opening
  of markets and globalisation

THE EXPORT MODEL
3
Economic and Social Situation in 2001

• 1990-2000
• Economic growth of 3.2 annually
• Poverty Growth 224 million of persons in
  1999 (12)
• Increased inequity 20 gt income
  20 lt income
• Increased unemployment
• Lower salary value
• 500,000 professionals left the region
• Increased External Debt

19 1

- In México, is 160 billion dollars- In Central
America is 17 billion dollars
4
The Industry in 2001

• Economic Model based on the intensive
  exploitation of natural resources
• Increased export level of pollutant
• industries (steel, aluminium, etc.)
• LAC region main exports are
• - Minerals - Agricultural products -
  Wood - Fish - Other products from the
• maquila with only 3 of
• national inputs
• Industry of low added value products

5
The Industry in 2001

• Increased unemployment and
• informality
• Reduction in research and development of
  (cleaner) technologies
• Export done by a small number of large industries
• 95 of the enterprises are MSEs and offer 85 of
  employment

6
Some problems faced by MSEs

• MSEs lack contractual power and have higher costs
  of inputs
• Excesive fiscal requirements
• Lack of access to funding
• High interest rates
• Lack of qualified workers
• Complex and inneficient Government structures

7
Environmental Impact

• Environmental degradation
• Loss of forests 4.5 million ha of
  forests lost annually
• Degraded soil 243 million ha in South
  America, and 65 million ha in Mesoamerica
• Biodiversity
• Thousands of endangered species and many
  extinct

- In México, 600,000 ha per year- In Central
America, 200,000 per year
Corredor Biológico Mesoamericano
8
Environmental Impact

• Water - High level of pollution In Central
  America, only 2 of wastewater is treated. In
  Mexico, 13 - Critical supply in some areas
• Coastal Marine Zones Contamination
  Loss of mangroves (65 loss)
  Damage to coral reefs
  Sediments Chemicals High
  exploitation of marine resources
• Industrial Waste
• Tourism

9
Sustainability?
Disasters Vulnerability Insufficient
Growth Poverty Unemployment Inequity
SUSTAINABLILITY?
10
Need for change

• Rethink the relationship between environment and
  trade and domesticate globalisation
• Aim at an economical growth of at least 6
  annually
• Search for a solution to external debt problems
• Reduce volatility of capitals

11
Productivity needs

• Increase social spending - better health
  services - more and better education -
  increased productivity
• Reduce pressure on natural resources
• Develop internal markets
• Increase support to MSEs

12
Productivity needs

• Increase Private Investment More and better
  paid jobs
• Promote the creation of industrial clusters

• Increase exports of high added value products
  from diversified sources and low environmental
  impact industries

13
International Commitments

• Fullfilment of commitments by developed
  countries in relation to Agenda 21 and the
  Rio Declaration

• Kyoto Protocol stabilization of
  greenhouse gases to prevent disasters

14
Some environmental that need improvement

• Solid waste
• Only 40 are adequately managed
• Polluted water Treatment and re-use of urban
  and industrial water
• Air pollution
• Transportation Industrial emissions
• Climate Change

15
Some environmental that need improvement

• Wider use of renewable energy and promotion of
  energy saving
• Handling and treatment of toxic materials and
  waste
• Sust. management of forests
• Development and use of cleaner technologies

Report Recommendations
16
Report Recommendations

• Promote the industrys competitivity but with a
  rational and sound use of natural resources and
  the environment
• Ensure private sector pro-active participation in
  the design and development of national and
  international environmental laws and rules
• Promote technical training and the development
  and adoption of cleaner technologies

17
Report Recommendations

• Promote sustainable tourism
• Develop the internal market in each country
• Promote the production of high added value
  products
• Promote and integrate the MSEs as central
  elements of a sustainable industrial development
• Reduce dependency on highly pollutant industries

18
Report Recommendations

• Develop economic incentives and avail funds for
  cleaner production
• Increased access to capital at competitive rates
• Promote innovation and
• industrial clusters
• Fight poverty and social inequity
• Develop and use a regional model of indicators of
  sustainable industrial development

19
Programa de las Naciones Unidas para el Medio
Ambiente Programa das Naçoes Unidas o Meio
Ambiente
Oficina Regional para América Latina y el
CaribeBlvd. de los Virreyes 155, Lomas de
VirreyesCP 11000 México, D.F., MEXICO
http//www.rolac.unep.mx