Some are tempering their enthusiasm, however. IADB president Enrique V. Iglesias, for one, warns that improvements can be temporary. Externally driven improvements in an economy are rarely long-lived, as the regions experience and world history can attest, he said as part of his opening remarks at this years IADB conference in Lima, alluding to the fact that high international commodity prices and historically low interest rates in developed economies have played a role in emerging markets recovery. Sooner or later we can expect to see adjustments, he said.
Iglesias suggested Latin American and Caribbean countries should use this favorable phase to consolidate reforms that have worked well, correct those that have fallen short and press ahead with ones that are pending. The pay-off, he feels, will come in the way of increased economic efficiency and a more equitable distribution of its benefits.