Financial Governance Beyond the Crisis Creating an Innovative Financial Architecture in Latin America

The ongoing eruption of the global financial crisis continues to prompt a dramatic resurgence of various forms of state intervention in economic affairs.  Within the EU, the intervention has led to the consolidation of supranational state power on policy areas that were previously the domain of member states, eroding nation states' policy space and undercutting public debate in the name of fiscal discipline.  

In Latin America, in contrast, the crisis has engendered a fundamental rethinking of the state and market balance, and of the link of the productive and financial sectors of the economy.  In this interview, Dr. Pedro Paez talks about the creation of a new financial architecture in Latin America, one that is based on principles of redistribution, environmental sustainability and social cohesion rather than market principles that dominated the old architecture.

For more on the new regional financial architecture in Latin America, watch Oscar Ugarteche's speech at the Seminar on Alternative Regionalisms at the ASEAN People's Forum in Jakarta in May 2011.