Colombia's Santos Highlights Strong Regional Economies At Summit

President Juan Manuel Santos, who this weekend is hosting a hemispheric meeting of regional leaders, on Friday showcased the economic progress of Latin America in recent years, saying other countries could learn from the policy recipes used by Colombia and other nations in the area.

Santos addressed a gathering of the top business leaders in Latin America at a conference that is running parallel to the presidential Summit of the Americas, which will be attended by U.S. President Barack Obama and some 30 other heads of state from the western hemisphere.

Santos highlighted that international investors now view Colombian bonds as less risky than those of several European countries including Italy and Spain.

"A decade ago Colombia was on the brink of being considered a failed state," Santos said. 

The country, however, engaged in a military offensive to hammer a decades-old Marxist insurgency while simultaneously applying market-friendly policies to attract international investors.

Santos said his government has also moved to limit the fiscal deficit and put a leash on public spending, measures he said helped lift investor confidence.

"Inflation is under control and foreign investment is surging," Santos said in his speech. 

The Colombian economy grew 5.9% in 2011 while inflation remains comfortably within the central bank's target range of 2% to 4%.

Santos added the region still faces plenty of challenges, which he said should include forging a more balanced, tightly knit partnership with the U.S. 

The region, he said, needs to help Washington understand "its strategic interests are not in Afghanistan or Pakistan, but they are in Latin America."

Latin American leaders are set to discuss with Obama the U.S. embargo on Cuba and to also open up a debate on the possible legalization of drugs. 

The summit, Santos said, could be a "tipping point" that would help move forward the relations between Latin America and the U.S.