RIO DE JANEIRO -- Better distribution of wealth and reducing social and economic disparities should come as soon as possible and not as results of future development in Latin America, politicians and business leaders said at the World Economic Forum underway here. Socialist Spanish former prime minister Felipe Gonzalez said in an address that development is not possible without a "distribution of fairness, or social justice."

"There is no developing country in the world that has become a bigger player without first redistributing income as a condition for domestic market growth. If we ask 'is sustained economic growth possible without wealth (re)distribution, the answer is no,'" Gonzalez said.

"It is time to put aside adjustment plans and start adopting development plans. To do that, the framework of international finance is going to have to change ... the current model is not sustainable," said Gonzalez, music to the ears of many in Latin America weary of IMF adjustment requirements.

Brazilian Agriculture Minister Marcus Vinicius Pratini de Moraes, speaking of the planned free trade area of the Americas, warned that developed countries' subsidies to farm sectors seriously distort markets and said they could turn into a serious obstacle for negotiating the deal, scheduled to be in place by 2005, AFP reported.

Since 34 countries including Brazil agreed back in 1994 to negotiate the free-trade zone, Brazil has been the least eager to speed up the preparations, often arguing Mercosur should be further consolidated before moving to adopt a broader free trade plan.

Mercosur, which groups Brazil, Argentina, Uruguay and Paraguay and associate members Chile and Bolivia, is an imperfect customs union moving toward freer trade in South America.

It is negotiating deals with the European Union and neighbors in the Americas.