CEMLA, A Key Institution in Latin America 60º anniversary CENTER FOR LATIN AMERICAN MONETARY STUDIES cemla: A Key Institution in Latin America, 1952-2012 CEMLA: A Key Institution in Latin America, 1952-2012 Eduardo Turrent Díaz CEMLA: A Key Institution in Latin America, 1952-2012 First edition, 2015 Centro de Estudios Monetarios Latinoamericanos (cemla) Durango 54, colonia Roma Norte, Delegación Cuauhtémoc C.P. 06700, México D. F., México <www.cemla.org> Copyright© 2015 Centro de Estudios Monetarios Latinoamericanos All rights reserved Printed in Mexico isbn 978-607-7734-64-2 Any copy or reproduction, retransmission, or re-diffusion, total or partially and through any media, of the content of this book is completely forbidden without previous written authorization form cemla. Editorial and translations coordination by the Information Services Management, cemla. Cover photography: © Dave Bredeson | dreamstime.com vi Table of Contents Preface ........................................................................................ xi Introduction ........................................................................ 1 Chapter I. Antecedents and Establishment (1952) .......... 15 1. Beginnings .......................... ....................................... 15 2. The Project ................................................................. 24 Chapter II. Takeoff (1952-1960) ........................................... 41 1. Overview .................................... ................................. 41 2. Training ........................................ .............................. 56 3. Information ........................................ ........................ 62 4. Research ..................................... ................................ 64 5. Other Activities .............................. ............................ 70 vii Chapter III. Transition (1960-1972) .................................... 75 1. Overview................................................ ...................... 75 2. Training .................................. .................................... 89 3. Meetings ..................................................... .............. 95 4. Research .......................... ......................................... 98 5. Publications and Other Activities ........................... 103 6. Other Activities ....................... ................................. 106 Chapter IV. Consolidation (1972-1985) ............................ 111 1. Overview .................................. ................................. 111 2. Training .............................................. ...................... 125 3. Research ....................................................... ............ 129 4. Meetings ......................................................... .......... 138 5. Other Services .......................................................... 142 6. Publications ...................................................... ....... 144 7. Other Issues ........................................................... .. 147 Chapter V. Evolution (1985-2000) ...................................... 151 1. Problems to Be Solved ..............................................151 2. Budgetary Crisis ......................... .............................. 161 3. Training ................................................. ................... 163 4. Research, Publications and Meetings ......... ............ 170 5. Other Functions ........................................................179 6. cemla, Banking Regulation and Supervision, and Creation of the asba ..................................... 181 Chapter VI. Reform Phase (2000-2009) ........................... 187 viii 1. Winds of Change ....................... ............................... 187 2. The New Administration and its Actions ............... 195 3. Multi-year Programs ................................ ................ 205 4. Training and Meetings .................................... ........ 207 5. Publications, Technical Assistance and Others ...... 217 Chapter VII. Going Forward (2010-2013) ......................... 223 1. Overview ...................... ............................................. 223 2. The Strategic Plan ........... ........................................ 224 3. Quotas ...................................................................... 232 4. Program of Events ... ................................................ 237 5. Reorganizing the Meetings of Governors and Other Technical Meetings .................................... 241 6. Research ....... ............................................................ 247 7. Publications ... ........................................................... 252 8. Technical Assistance ................................................ 256 9. Changes and Innovations .. ...................................... 258 10. Progress and Administrative Reforms ................... 264 11. Challenges and Conclusions ................................. 266 Chapter VIII. Balance and perspectives .......................... 269 Biographical Sketches 1. Rodrigo Gómez ............................................................... 25 2. Javier Márquez ................................................................ 50 3. Adolfo César Diz .......................................................... 120 ix 4. Jorge González del Valle .......................................... 130 5. Jesús Silva-Herzog ........................................................ 158 6. Sergio Ghigliazza García . .......................................... 167 7. Kenneth Coates ............................................................. 196 8. Javier Guzmán Calafell .............................................. 225 Preface he second meeting of Central Bank Technicians Tof the American Continent was held in 1950 in the city of Santiago, Chile. At this forum the delegation from Banco de México, led by Agustín Luna Olmedo, Head of the Economics Studies Department, presented a project for establishing a body that would be called Institute for Latin American Economic Stud- ies. All indications point to the outstanding influence in the idea for the project of the Deputy Director of that bank, Rodrigo Gó- mez, and the Spanish economist, Javier Márquez, who had trav- elled from England to Mexico in 1939 to live in the country for the rest of his productive life. Although there is no written evidence, there was very strong at the time that the Mexican proposal aroused much concern in the renowned economist Raúl Prebisch, who was then the Sec- retary General of the Economic Commission for Latin America. He seemingly believed that if the institution proposed by Banco de México was established it would lead to a duplication of func- tions with the sub continental organization founded in 1948 on the initiative of the Chilean diplomat Hernán Santa Cruz. Perhaps Prebisch’s complaints were heard and the project was modified to, in narrower terms, propose the establishment of a research in- stitute sponsored by central banks of Latin America and aimed at providing training and undertaking research in specialized bank- ing and monetary policy fields. preface xi The impetus of Banco de México and growing support from other central banks of Latin America meant the project finally materialized in 1952. The motivation was to study the monetary and banking problems afflicting countries of the sub-continent, but from the perspective of such countries. Another motivation, perhaps a little more ambitious, was that of attempting to create original economic thought in countries of the area regarding monetary and banking issues. Moreover, and at a less abstract level, it also emphasized the advantages of providing effective training at affordable costs for central bank executives and technicians of the zone. Such effort would reduce the costs of training and the education would also be more pertinent and appropriate for the actual problems faced by central banks of the area. In recognition of his noteworthy professional capabilities and the part he had played in creating the project, Banco de México recommended that the Director of the institution, which would be known as the Center for Latin American Monetary Studies, should be Javier Márquez. Mr. Márquez put his heart and soul into the task from the moment cemla opened its doors right up until his retirement, approximately two decades later. At the beginning Márquez’s work consisted of ensuring the survival of the institute. In fact, it was crucial it obtained the backing and membership of a growing number of Latin American and Caribbean central banks. It was also very important to recruit, as collaborating cen- tral banks, those of the United States, Canada, France, England, and Spain in order for them to contribute financial resources, speakers and students. In this start-up period it was gradually established that the organization would focus on teaching and training tasks. Later it would have the opportunity to diversify its functions, placing more attention on publishing, organizing events and meetings, and encouraging research. Given that Banco de México had made the proposal for set- ting up cemla, the founding members of the organization agreed that its head offices should be located in the Mexican capital. In this regard, Eduardo Turrent had been correct in emphasizing the support cemla was to receive from its alma mater, as well as xii cemla: a key institution in latin america, 1952-2012 the Mexican government.