Forwarded message: > Date: Wed, 17 Sep 1997 09:36:38 -0400 (EDT) > From: "Victor O. Story" <[EMAIL PROTECTED]> > To: ATWS <[EMAIL PROTECTED]>, chiapas <[EMAIL PROTECTED]> > Subject: LatAm is where it's happening, say consultants (fwd) > > SAO PAULO, Brazil, Sept 15 (Reuter) - Latin America has made > huge strides in competitiveness over the past few years, and > though it still has a long way to go, the time is ripe to check > out investment opportunities, senior management consultants > said. > In Brazil, in particular, low inflation resulting from the > three-year-old "Plano Real" economic stabilization plan would > result in a flood of foreign investment into every sector of the > economy over the next few years, they said. > "The Real is real," said Stephen Zimmer, managing partner > for Latin America with Andersen Consulting, referring to > Brazil's real currency which trades against the dollar within a > controlled band system. > "Latin American countries have come a long way in a very > short period of time. By the same token, they have a very long > way to go," said Fred Steingraber, chief executive officer of > U.S. consultants AT Kearney Inc. > Steingraber and Zimmer, along with other consultants such as > George Roth, country manager Brazil for Ernst & Young, spoke to > Reuters Financial Television during a three-day Mercosur > Economic Summit in the Brazilian city of Sao Paulo. > Hosted by private Swiss group World Economic Forum, the > meeting brought together about 400 businessmen and government > officials to discuss business opportunities in the Mercosur > trade bloc, grouping Brazil, Argentina, Uruguay and Paraguay. > Steingraber said companies in countries like Brazil and > Argentina were rapidly reworking their cost structures to > compete in a global environment. > They now faced the challenge of "moving up the value-added > chain" in terms of exports. > "So I think rightfully, these countries will continue to be > a positive market for foreign investment," Steingraber said. > Zimmer said the end of hyperinflation and relatively long > periods of economic stability had lent new credibility to Latin > American economies. > "It's a bit like that," Zimmer told Reuters when asked if > Brazil and other countries in the region had reached a watershed > in terms of foreign investor confidence. > "If you look at every sector (of the Brazilian economy), you > will see foreign investment pouring in," Zimmer said. > The consultants noted that while foreign direct investment > into China, another emerging economic power, had leveled off, > foreign direct investment into Brazil was just taking off. > Brazil attracted more than $9.0 billion in foreign direct > investment in 1996. > This year, it is expected to get $12 billion, most of it > fueled by a billion-dollar privatization program involving > ports, roads, railways, telecoms and the mining and energy > sectors. > The consultants said the successful establishment of the > Mercosur customs union at the start of 1995 has boosted > investment by major international companies because of the sales > opportunities in a 200-million-strong customer base. > Free trade deals struck with Chile and Bolivia, together > with the possibility of similar accords with other countries in > the region and even Canada and the European Union, enhanced the > export potential of manufacturing bases in Mercosur, they said. --
