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Even though Latin American economies have benefited from globalization, there are some areas where the potential advantages have not yet been reaped. This article holds that the region should capitalize on this opportunity in order to accelerate its development and reduce the gap that separates it from developed countries. If the benefits are to be harvested, open markets must be strengthened, structural reforms begun after the debt crisis must be refined and completed, and political and economic institutions must become sturdy.
The article says that globalization has also had an impact on monetary policy. Transmission mechanisms have been altered by the weakening of the ties between domestic demand and production, and by larger scale commercial and financial integration. The authors say that macroeconomic discipline has become imperative.
It also holds that Latin America must, nonetheless, not restrict itself to meeting the basic requirements —stability, openness, competition on the market and modern institutions. It must fully engage in innovating technology, in improving education and labor skills. Finally, the objective of reaching a political consensus and making civil society a participant in policy formulation must be a part of the reform process so that said consensus and policies will be legitimate and the possibility of costly political setbacks will be minimized.