VZCZCXYZ0008
OO RUEHWEB

DE RUEHSO #0050 0261227
ZNR UUUUU ZZH
O 261227Z JAN 09 ZDK
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8894
INFO RHEHNSC/NATIONAL SECURITY COUNCIL WASHDC IMMEDIATE
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0041
RUEHRI/AMCONSUL RIO DE JANEIRO PRIORITY 8995

UNCLAS SAO PAULO 000050 
 
SIPDIS 
 
STATE INR/R/MR; IIP/R/MR; WHA/PD 
 
E.O. 12958: N/A 
TAGS: KMDR OPRC OIIP XM XR XF BR
SUBJECT: MEDIA REACTION: GLOBAL ECONOMY 
 
Latin America and the Crisis: an anti-cyclical and progressive 
answer 
 
Op-Ed in business-oriented Valor Econtmico (1-26) by Marcelo M. 
Giugale, World Bank Director of Economic Policy and Poverty 
Reduction for Latin America and the Caribbean: "Latin American 
governments need to amortize the impact of the global financial 
crisis. They do not have many tools to do this. But they do have one 
that is particularly powerful, as it encourages both economic growth 
and social fairness: the transformation of subsidies for all into 
subsidies for all the poor....Latin America spends annually between 
5% and 10% of its GDP on subsidies....This crisis is an opportunity 
[to direct the subsidies to the homes that need it most]." 
White