By Raymond Colitt
COSTA DO SAUIPE, Brazil, Dec 17 (Reuters) - Latin America leaders pressed their case for a bigger say in world affairs on Wednesday, saying the global economic crisis was not their fault but was undermining their countries' stability.
Economic activity is slowing rapidly in the region as commodity prices fall and foreign capital dries up, with several countries coming under pressure to cut social spending and investments in much-needed infrastructure.
Ecuador last week defaulted on its foreign debt, sparking fears of further defaults in the region. Venezuela may have to slash its spending if oil prices remains low, while regional giant Brazil has gone within months from enjoying stellar growth to facing a possible recession.
"It's a great threat for our people and governments, for the political stability of a continent that is just beginning to emerge," said Venezuelan President Hugo Chavez, who plans to hold a referendum next month that would allow him to extend his stay in power.
Brazil President Luiz Inacio Lula da Silva demanded a bigger say for Latin American and Caribbean countries to help reshape the global economic order.
"We have an important part to play in building a new international economic and political architecture," said Lula.
"I'm worried. Every day the risk premium of my country rises and in the United States it's zero. Something is wrong," he added.
Bolivian President Evo Morales, an ally of Chavez, said the economic crisis had raised the chance of new "revolutionary movements" emerging in the region.
"We have two paths. To change this economic model, called capitalism, or stimulate new revolutionary movements in our countries, where equality, dignity and solidarity count,"
The summit, marked by widespread criticism of rich countries as the source of the crisis, is trying to showcase the region's growing independence from the United States and welcomed Communist-run Cuba for the first time.
But beyond the talk of a more unified regional stance, few concrete steps are expected to emerge. The region has its own divisions between leftists such as Chavez and centrists such as Lula and Chile's President Michelle Bachelet who are keen to maintain friendly relations with the United States.
"Let's not blame all evil on the empire," said Uruguayan President Tabare Vazquez.
"We haven't been able to elaborate a project that gives our people dignity," he said, calling on countries to manage their debt responsibly.
Proposals at the summit to face the crisis included pooling international reserves, boosting regional infrastructure, and creating a regional clearinghouse for fund transfers.
"It's not the time for budget cuts, for denying the state. When the market fails, the only thing society believes in is the state," said Lula.
The summit is expected to recommend a proposal for Brazil, Argentina and Mexico to take to the next meeting of the G20 group of most developed countries, which agreed last month in Washington to include more nations in economic decision-making. (Editing by Stuart Grudgings and Anthony Boadle)