
In November of last year, the New Yorker published a profile of Thomas Friedman that I only just read in January. In it, the famed author and journalist quotes economist Paul Romer:
"A crisis is a terrible thing to waste."
Romer's words could have easily served as the subtitle for Sweden's recent "Latin America Day," where the tone was one of hope and opportunity. The event, held at the Sveriges Riksdag (the Swedish parliament) in Stockholm, was a last-minute surprise during my February travels.
As part of my journey through Scandinavia, I made a five day stop in Sweden's island capital, where I was put up by His Excellency the Uruguayan Ambassador to Sweden, Norway, Finland, Denmark, Estonia, Latvia, and Lithuania, and his wife. (Uruguay is a small country; apparently the Ministry of Foreign Affairs can afford to lump all the Scandinavian and Baltic nations under a sole diplomatic umbrella.) I know them as Manuel and Marta, friends of my mother's from their time in Miami at the Uruguayan Consulate. Marta, especially, developed a close friendship with my mother through their volunteer work with the Asociación de Mujeres Uruguayas de Florida (Uruguayan Women's Association of Florida). For any architects or engineers out there, Marta is also the daughter of famed Uruguayan Eladio Dieste who invented the Gaussian vault. You've gotta love the Uruguayan family tree; shake it hard enough, and you never know who might fall out.
From what I could observe, Manuel's job is as exhausting as it is stimulating. His presence (and, frequently, Marta's) is required at multiple diplomatic events on a daily basis: cocktails at the United Arab Emirates embassy, dinner with the Spanish, royal meet-and-greet at the Palace, not to mention responsibilities as mundane as riding the embassy car to the airport to pick up Uruguayan and Latin American VIPs. In his down time, Manuel removes his suit coat, kicks off his shoes, and stretches his wiry frame out on the plush couch in their living room, where he indulges in the daily cable broadcast of Cuéntame como pasó, a popular and long-running Spanish TV show that follows a family from the Franco years into the 1990s. Manuel's laptop is seldom far from his fingertips; he surfs the web in his stocking feet, alternating between BBC news and Mininova, the torrent downloading site where he downloads movies to watch when he is traveling.
Marta, with short clipped hair and a tan complexion even in the dead of Swedish winter, is still looking for more activities to occupy her time. She tells me, in that low, smoky voice characteristic of women from the River Plate region, that she misses the network of friends she left behind in Miami. And then she shows me the thick stack of diplomatic invitations, extended in ornate, stenciled writing to "His Excellency and partner," to dinners and receptions and teas and so on.
One of these invitations was to "Latin America Day," a day long conference featuring such notable Latin American specialists as Enrique Iglesias and Pierre Schori. On Manuel and Marta's enthusiastic offer (and because I miss the Latin Americanist environment), I decided to attend.
Latin America has always been of great importance to Sweden, and vice versa. When violent dictatorships ravaged much of the region's intelligentsia in the last century, many, particularly from South America, fled to the northern, amnesty-granting nation. And they remained there. Many even went on to become members of parliament
"The many Latin Americans who live in Sweden are an important asset to our society," began Gunnar Wieslander, State Secretary to the Minister of Trade, as he launched into his presentation entitled "Latin America and Sweden - a Broad Relation." He went on to note that "more students than ever study Spanish in Sweden." Latin America is "more important than our neighbor Russia, and more important, even, than the giant China." Wieslander's claim, though broad and not deeply explored in his key note address, was echoed both by his mastery of Spanish and his expert knowledge of the region (later showcased during the panel debate). He wrapped up his talk with an earnest request directed to the Latin American statesmen and businessmen in the room: "Please think of us as ready to work on equal footing."
Next up was superstar Pierre Schori, former Swedish Ambassador to the United Nations and recent author of the book "The Years of the Dragon´s Teeth - September 11, the Iraq War and the World after Bush." He was a member of the parliament back in 1982 when "Gabo" (Gabriel García Márquez) came to Stockholm to receive the Nobel Prize in Literature. Schori recalled how the Colombian Ambassador commenced ill-advised festivities by handing out bottles of rum to parliamentarians. Unfortunately, someone higher up decided it was "not appropriate" and put an end to the rum. "But I can assure you we all enjoyed it very much," Schori proclaimed, smiling at the audience.
His talk went on to address Latin American gains (a major theme throughout the conference) and the outlook for U.S.-Latin American relations. He remarked on poverty reduction in the region, signaling positive strides while noting that income gaps have widened. "La pobreza tiene color y es femenina," (Poverty has a color, and it is feminine) he added, highlighting where there is significant room for improvement.
Another trend, and one that has been concretized by the economic crisis, is that Latin America "speaks with its own voice," Schori said, borrowing Brazilian President Lula's recent words in Madrid after receiving the Cervantes Prize. This is in marked difference to the region's position in past crises. Now, Schori explained quoting OAS Secretary General José Miguel Insulza, there has been shift to "create policies with countries, not for them." On the subject of the U.S. and what Obama can do for Latin America, Schori was more cynical, citing Obama's already full plate (the state of the American economy, health care, and the wars in Iraq and Afghanistan). Though he recognized the closing of Guantanamo, Schori cautioned against being overly optimistic: "A good signal would be for the U.S. not only to close Guantanamo but to hand it back to its rightful owners."
Enrique Iglesias followed Schori's talk by delving straight into the current global crisis, which he called the "perfect crisis." Why? "Consumers don't consume, investors don't invest, banks don't lend, and governments don't collect taxes." It is, Iglesias asserted, a "dramatic crisis of confidence...and the capitalist system depends on confidence."
In the last decade, Latin America has reaped the fruits of a "bonanza:" it "learned how to manage the economy" and joined the new world geography, exporting food, energy and metals. Consequently, the region saw an overall reduction of poverty from 45% to 35%, saved $450 billion in reserves, and currently boasts inflation and unemployment figures in the single digits, as well as stability. The crisis has brought with it a regrettable series of effects that threaten these tremendous strides. Tourism is down, as are remittances and commodities prices, and the region is feeling credit crunch.
"But Latin America is better prepared than ever to deal," Iglesias stated in an unequivocally positive tone. For the first time, "emerging markets are not part of the problem: they are part of the solution." What's more, Latin America posseses a great and unique asset: "Now is the time to activate integration," he urged. "A new world will emerge;" one in which "maybe we can tackle other problems." (A crisis is, indeed, a terrible thing to waste.) Amidst all these potential opportunities, Iglesias underscored the importance of keeping alive poverty reduction policies: "Ten points is a conquest, and it would be very dramatic if we lose that. If we return people to poverty." He concluded by impressing on us the singular chance offered by the crisis to not only put order in house economically but ethically. (To my knowledge, it is a rare thing to hear a key note speaker at a trade conference appeal to our sense of right and wrong while discussing economic policy.)

De Vylder's somewhat tongue-in-cheek address, entitled "It Is Not Our Fault This Time! Latin America Coping With Past and Present Financial Crises," reiterated Latin America's relatively good position today: just last year, 70% of all reserves were in emerging and developing markets. Latin American banks, specifically, don't have toxic assets.
Whatever the post-crisis future brings, developing countries and markets will need to play a markedly stronger role. And there is reason to believe that this is a very good thing.