Civil society
Neither governments nor the private sector on their own can reduce poverty, the region's foremost problem. It will also take the collaboration of millions of citizens working in thousands of civil society organizations, according to speakers at the seminar "Social Programs, Poverty and Citizen Involvement." Participants presented case studies of instances in which civil society groups have helped to resolve social problems. They also discussed specific opportunities for citizen participation, such as education, health, protection of vulnerable groups, urban services, philanthropy, environmental protection and IDB-funded projects.

Preventing violence
Even more than a social problem, violence is a major drain on the Latin American economies, costing the region 2 percent of its gross domestic product, according to participants in the seminar "Building Peaceable Societies: A Frame of Reference for Action." An IDB paper, which described Latin America as one of the most violent regions in the world, recommended information campaigns for schools and homes, measures to prevent alcohol and drug abuse, and programs to control weapons.

Joblessness
Better education is the first step to improving wages and reducing unemployment, and Latin America has before it a unique opportunity. Speaking at the seminar "Employment in Latin America: What is the Problem and How to Address It," the IDB chief economist pointed to a drop in the number of children per worker and a higher proportion of economically active people in the region as a window of opportunity to boost spending on education without increasing taxes (see article "Demographics and jobs"). Other subjects were the macroeconomic environment, labor supply, labor laws, the role of unions and collective bargaining.

Investment
The region offers many new opportunities for investors, including thousands of promising small firms. But realizing this potential will depend on success in deepening financial market reforms that can protect the region from external shocks, such as the Asian crisis, according to participants in the seminar "Investing in the Emerging Markets of Latin America and the Caribbean: Risks and Opportunities." One particularly fertile investment field is infrastructure: the region will need to spend between $500 billion and $1.5 trillion to close the infrastructure gap with the developed countries, according to the managing director of one major investment firm.

Asset laundering
The practice of legitimizing earnings from illicit activities, such as drug trafficking, bribery and arms smuggling, is threatening the stability of some of the region's governments and economies, according to participants in the seminar "Banking Supervision and Asset Laundering." They recommended training for regulatory and financial officials, better data networks and tougher measures to prevent illegal financial transactions. (See article "How to stop the money washers").

Pension reform
The region's capital markets will be a major beneficiary of Latin America's pension system reforms, according to participants in the seminar "Pension Reform: Nature, Achievements and Challenges." Among the recent reforms examined was that of Per™. Income from pension funds in that country has increased from $29 million in 1993 to more than $1.5 billion last year, and is now contributing several points to Per™'s annual GDP.

Banking
Although Latin America has resisted the worst effects of the Asia crisis, it must do much more to strengthen its banking systems in the face of increasing globalization, competition and volatility. Among the problem areas identified by participants in the seminar "Banking in Latin America: Stability and Efficiency" were shallow national financial systems, investor volatility, loopholes in certain regulatory areas, and temporary euphoria produced by credit booms and large, short-term inflows of foreign capital.