Working Together in Pursuit of Inclusive Business: Sharing the Latin American and Caribbean Experience with Asia and the Pacific

Asia and Latin America are among the world's fastest growing regions. They demonstrated strong resilience and rapid recovery following the global economic crisis, and have many useful lessons to share. For instance, Asia can gain from Latin America's experience of pension systems, cash transfer programs, urban infrastructure development, and agricultural modernization. Similarly, Latin America can benefit from Asia's experience in manufacturing production and supply chains, human capital formation, public-private sector partnerships, and regional financial cooperation initiatives, such as the Chiang Mai Initiative. Both regions have large domestic markets. And despite strong economic development, both still have large populations living in poverty. Both regions also have unique strengths-whether in natural resources, industry, or services. Building on these complementarities will continue to underpin our interregional relationship. We are committed to building more mature and diverse trade patterns, as well as more sustained investment and cooperation partnerships.

Seizing the Cooperation Opportunities for Asia-Pacific and Latin America and the Caribbean: ADB and IDB Partnership for South-South Cooperation

Latin America and the Caribbean (LAC) and developing asia have rapidly become more intertwined as the two regions experience strong growth. Trade between the two regions has grown at an average annual rate of 20.5% since 2000, reaching an estimated US $442 billion in 2011. Developing countries are an increasingly important source of investment, and are now the origin of more than a quarter of worldwide foreign direct investment (FDI) flows. Most recently, china has emerged as an important source of capital in LAC. However, while FDI between asia and LAC is on the rise, flows remain concentrated among a few countries, and it has yet to keep pace with the robust increase in trade linkages.

Comparative Perspectives on Trans-Pacific Trade, Integration, and Development

Latin America and the Caribbean (Latin America for short) and Asia and the Pacific (Asia for short) are dynamic and diverse emerging markets in the global economy. Collectively, they constitute a quarter of the global GDP. Both regions hold immense potential for growth, trade, and development; both are also under the pressures of global competition and vulnerable to external shocks such as global economic downturns and volatile capital flows. Both regions are also undertaking the hard work of reducing poverty and inequality, streamlining institutions, fostering private sector competitiveness, and nurturing regional cooperation and integration. Much of the future of Latin America and Asia depends on how they carve their destinies today