From El Diario:
VII Monetary Conference: “Successes and challenges for Latin America”
ECLAC warns that the era of raw materials bonanza has ended
The event organized by the Central Bank of Bolivia, commemorating its 85 anniversary of creation, opened a wide-ranging debate on the economy, development and Government policies of America.
The Economic Commission for Latin America (ECLAC) warned yesterday that the new conditions of the international market, especially the raw materials show that “the good times ended”, which would mean the “end of cycle” of high prices of commodities.
The official of Economic Affairs and the Economic Commission for Latin America and the Caribbean (ECLAC), Rodrigo Cárcamo, at a specialized conference which offered in the Central Bank of Bolivia, considered as a “possibility” that the era of high international prices of raw materials has finished.
This behavior would determine an adverse trend in the economy of the region for the present year, since conditions are less favorable than last year.
In the present, is the generation of a climate of great uncertainty in the market and the question is that if the “supercycle” bullish prices of commodities has ended, (raw materials), that has been going upward since 2003 and 2004, when they rose strongly, which favored the basic exports of minerals, food and energy.
In his explanations, has reflected that prices have stopped rising and others have fallen, therefore, there is heterogeneity. If this situation continues, probably the effect will be a slower growth in the region.
This problem has been analyzed in ECLAC. It is a regional overview that could vary depending on products such as tin, zinc or copper. There are agricultural products that have a special peculiarity because they are very subject to the supply. An example are the prices of soy that went up the year 2012 because of the drought in the region, he argued.
The subject was exposed by Cárcamo, during the 7th monetary conference: “Successes and challenges for America Latin in the middle of the Crisis”. This event was organized by the Central Bank of Bolivia (BCB) commemorating its 85 anniversary of creation.
Unfortunately, current government’s only priority is the illegitimate re-re-election and is doing nothing to invest on sustainable industries that can lessen this downfall.