Visiting Brazil, Chile, and Argentina

Satoru Kishi Vice Chairman, Keidanren Chairman of the Board, The Bank of Tokyo-Mitsubishi, Ltd.

At the end of February, I had a chance to visit Brazil, Chile and Argentina. As the Vice-Chairman of the Keidanren, I had several opportunities to meet with the ambassadors from the three countries, and we discussed the current political and economic conditions in each country. I would like to share my thoughts and impressions about what I experienced during my trip.

First, I visited Brazil. A long time ago, the Brazilian economy experienced hyperinflation with more than 2000% annual inflation rate. Brazil looks like a different place now, however, as the inflation rate has been subdued to a single digit level for the past few years. It is obviously the successful result of the Real Plan, introduced by President Caldozo. Through the meetings with business executives of well-respected local enterprises and Japanese based companies in San Paulo and Rio de Janeiro, I got the impression that the Brazilian economy is very dynamic and its potential is higher than I had previously thought.

I visited Chile second. With a relatively small-scale economy, I felt that the character of this nation could be described as steady growing and hard working. Santiago, Chile's capitol, was a truly beautiful city where neatly developed residential areas have many houses that are decorated with blooming flowers. Fortunately, I was given a chance to meet the President of the Central Bank, who is very highly regarded for having controlled inflation over the past years. He said that the Chilean economy can maintain and enjoy sustainable growth and would not be badly affected by Argentina's deteriorating economy.

I visited Argentina last. The capitol, Buenos Aires, which is often called the "Paris of Latin America," reminded me of a quiet European city. Still, seeing the people protesting and clanging their pots and pans, I think that this country will need more time to overcome the current chaos and confusion. Upon leaving this country, the beautifully renovated airport, unsuitable for a nation that needs to cut 40% of its district finances, was something that stuck in my memory.

Last, but not least, I would like to add that many people from the business sector in these countries gave me the message that they would welcome more corporate executives visiting from Japan and would like them to see the present conditions of Latin American countries.