All these are challenges currently being shared by many countries and which Chile cannot ignore, nor can it ignore the need to gradually recover the buffers used up in the course of the current crisis. Addressing these challenges calls for measures other than those adopted to contain the crisis. Page 8 of 19  IV. To conclude  Having weathered the worst times of the crisis cannot lead us to overlook or postpone the challenges that recovery imposes on a day-to-day basis. The liquidity that the withdrawal of pension savings will cause should not create an artificial feeling of abundance because, as we know, this is only dealing with savings that will be in high need later on. These are no times for self-indulgence. No panacea has been discovered for the economy’s recovery, nor will it adjust automatically. There is no easy way to meet the challenges ahead, and there is no room for bad decisions. On the contrary, well-planned and coordinated work is imperative to confront these challenges in an economy that will emerge from this episode with long-lasting scars. The CBC has been attentive, active, and willing to cooperate throughout the last 15 months in the face of unprecedented difficulties and will continue to be so for as long as necessary. This Commission has been receptive to our contributions and has supported us in our work when we have requested it.
While the global economy is adjusting toward a new equilibrium, solid macro-prudential long run policies should replace current stimulating efforts. Therefore the challenge for our economies in the long run is to address current problems and the inherited ones based on a new model of growth, based on: (i) higher savings and investments, aiming toward a contained consumption matched by domestic production; (ii) persistent FDI inflows oriented toward tradable sectors; (iii) regional cooperation. BIS Review 164/2009  1  Let me briefly share with you some of my thoughts on the importance of this last remark, namely regional cooperation. Following arguments illustrate the benefits of cooperation, at several levels: •  From a development point of view, increased cooperation and integration on a regional level creates a greater scope for economies of scale. This would increase incentives for local and foreign investors to undertake big investment project that would not be profitable otherwise. A related advantage would be increased specialization of our economies, leading to a higher economic performance. •  On a policy level, coordinated macroeconomic policies, legal and prudential frameworks, would tend to improve the allocation of resources and to prevent beggar-thy-neighbor policies. This race to the bottom type of philosophy would not benefit the region as a whole. •  From a strategic point of view, our region is in competition with several emerging regions on a global scale.