If Latin America’s economic ties with China do not undergo a structural change, the region will be unable to meet the Millennium Development Goals (MDGs), an Argentine expert said during the Latin Economic Forum, held this week in New York.

“The relations between China and Latin America represent a historic opportunity, given the enormous growth in Chinese demand for commodities and fuel,” professor of statistics Graciela Chichilnisky said. “On the other hand, the historical circumstances make it necessary for these nations to stop specialising in exports of natural resources and to enter the knowledge economy,” said Chichilnisky, the director of Columbia University’s Centre for Risk Management.

The Latin Economic Forum, Inc. is a leading international non-profit organisation dedicated to serving the US Hispanic and Latin American community. The need for raw materials is growing faster in China. In 2003, it absorbed 40 per cent of the cement produced worldwide, 30 per cent of coal and steel, and 25 per cent of aluminium and copper. And it is Latin America that is China’s biggest supplier of these commodities.

Chile is the world’s top producer and exporter of copper. A large part of Chile’s copper is shipped to China, which is now the South American country’s second-largest buyer. China has become one of the top buyers of oil from Venezuela, the fifth-largest exporter of petroleum. However, Latin America is facing a schizophrenic dilemma: while opportunities for exporting raw materials are better than ever, this boom is the worst thing that could happen to the region, because it ultimately entails the exhaustion of its natural riches.

The speakers at this meet included diplomatic representatives from throughout Latin America, including the ambassadors to the United Nations from Argentina, Bolivia, Chile and the Dominican Republic, who addressed the region’s progress in meeting the MDGs, offering largely optimistic forecasts.

Chile’s ambassador to the UN, Heraldo Muñoz, said three Latin American countries will succeed in meeting the goals while another five have a good chance of doing so, although he did not specify which countries these are. The eight MDGs established by the UN General Assembly in the year 2000, to be fulfilled by 2015, are to reduce extreme poverty and hunger, achieve universal primary education, promote gender equality and empower women, reduce child mortality, improve maternal health, combat HIV/AIDS, malaria and other diseases, ensure environmental sustainability, and develop a global partnership for development. In 2005, there were 213 million living in poverty, according to the Economic Commission for Latin America and the Caribbean.

However, Chichilnisky said that it would be very difficult for the region’s countries to meet the MDGs, and commented that the positive outlooks expressed at the meeting were to be expected, given that the speakers were official representatives of their countries’ governments. As for the question of modifying Latin America’s trade relations with an economic power like China, Chichilnisky noted: “One solution is to create small and medium-sized enterprises in the region and thereby generate employment and respect the environment.” — IPS