High commodity prices and global liquidity can be a blessing for Latin American economies, but not all are taking advantage of this situation. This was part of the remarks by former Argentine Economy Minister Roberto Lavagna at a regional CFO Forum in Buenos Aires in April.
While countries like Colombia, Peru, Chile, Uruguay, and Paraguay have been profiting from this situation, others such as Venezuela and Argentina have chosen a populist path that has already failed in the past. Their wealth distribution efforts are being undermined by high inflation that is eating up worker's income, he warned. Market unfriendly policies, including nationalizations and forex controls, are also scaring off investors, Lavagna said.
But for both groups of countries, the most important thing is to bring costs down, CFOs agreed.
Xerox Argentina's CFO Dario Burstein said one way to do it is by reducing back office costs. His company has expertise in document digitalization...