Economic globalization, financial crises and regional integration: Lessons from East Asia for Latin America

The article has three main tenets, which arise from the East Asian experience in 1997-99: (1) globalization should be managed more adequately in order to reduce its negative effects on developing countries; (2) Latin America should undertake, with the aim of avoiding its vulnerability to new financial crises, important reforms (on issues such as exchange rates, capital inflows, foreign debt, bank credit, investment efficiency and financial liberalization); and (3) integration in Latin America should foster subregional projects (Mercosur) rather than hemispheric initiatives (FTAA).