What innovative approaches will ensure sustained economic growth and societal progress in the region?
Dimensions to be addressed:
– Understanding global trends
– Designing inclusive policies
– Guaranteeing long-term stability
and that’s all from me for this summit on delivering growth and strengthening societies. don’t miss me later today when i liveblog the 2:15pm (local time– 3:15 est) summit on ‘latin america in the current global context.’
here’s the peru gossip: peru’s first lady, nadine heredia, is a potential successor down the line– her approval ratings are high (61% in march)
we’ve heard a lot about foreign firms’ growing interest in latam. a lot of that is on the back of a move to service the growing middle class region-wide… here’s an interesting piece on it: http://www.economist.com/news/business/21575750-long-exporter-talent-latin-america-now-importing-it-new-new-world
klaus schwab: ‘3 conclusions. 1)reforming a country needs a comprehensive approach. 2) we have to get used to a new picture of latin america. it can become a kind of role model for inclusive growth policies. 3) in order to achieve what you want to achieve, you need a multi-stakeholder approach… business leadership… young leaders… women… social entrepreneurs.’
and back to klaus, enthused by martinelli’s invitation to check out the reforms he’s mentioned that are underway in panama.
martinelli talking about tax rates in panama— sounds like a bargain to any americans in the crowd.
growing middle classes across latam means citizens’ growing expectations– they’re becoming more organized and vocal than ever before, demanding better services– and they’re more willing to resort to social and labor unrest when these demands go unmet.
there’s a china reference– martinelli refers to ‘costa rican companies selling coffee in china.’
martinelli: ‘we here today, as presidents, have committed to being players and not spectators.” buzzwords: expansion, modernization.
a man, a plan, a canal– panama.
i just couldn’t resist.
here’s the martinelli gossip: there’s been ample speculation that he might try to change the constitution to run for president again.. but the chances for that have significantly diminished as his popularity has ebbed.
i haven’t heard much mention of china’s growing regional influence yet… a topic that shouldn’t be ignored:
so peru punches in at 6.3% expected growth for 2013.
panama taking the cake with expected 8.9%
….but panama’s problems “are shared across latin america.”
today, panama is a country “under construction.”
president martinelli talking about his career path– very interesting. from criticizing the system from the outside, to rebuilding it from within.
martinelli: “latin america is no longer a mere spectator. we are players.”
…and it’s klaus again, welcoming president martinelli of panama
pena nieto: “i am very optimistic and very enthusiastic that mexico is going to have a better future.”
pena nieto is talking credit/loans.
mexico’s credit as a % of gdp is ~26% …. lat am average? around 50%.
in mexico, reforms at different stages on a few key fronts–
teachers’ protests don’t seem to be discouraging pena nieto from implementing education reform.
telecom reform still needs lower chamber / state approval– could take a few years to implement..
and… financial reform is postponed given the electoral scandal that’s unfolding.
“in mexico, we now have an agenda for structural reforms that will lead to higher growth in the coming years.” — pena nieto. looks like he has his sights set higher than the 3-4% clip from last year/ this year.
mexico looking steady on growth. last year: 3.9% ; this year’s forecast: 3.4%
despite the issues with the electoral corruption scandal back home, the prospects for economic reform in mexico are still high– largely because pena nieto has oodles of political capital, and this is where he’s willing to spend it.
pena nieto: let’s “democratize productivity.”
the twin term for humala’s “social inclusion” ?
pena nieto: “mexico has a geopolitical position that is very relevant.”
yes, the shadow cast by usa to the north is hugely relevant on a host of issues
his speaking here could perhaps be seen as a show of confidence on his end in the electoral corruption scandal.
it’s impressive that pena nieto is in lima at all today, given the scandal unfolding back in mexico. http://www.bloomberg.com/news/2013-04-23/vote-scandal-threatens-pena-nieto-support-in-mexico-s-congress.html
mexican president enrique pena nieto has the floor.
klaus to mexican president pena nieto: “you have…impressed the world.”
he’s inviting him up to speak now.
and president humala has concluded his open talk.
klaus schwab now congratulating him on his address, and emphasizing his enthusiasm for a panel of leaders at the forefront of “building a new latin america”
humala’s focus on environmental policy is no coincidence. among active social conflicts, 72.2% of all conflicts relate to concerns about resources and the environment.
in peru, protests are still the weapon of choice for popular expression on policy– that won’t change until we see a strong institutional framework to channel discontent.
the peruvian president is now talking about environmental policy
humala talking about improvements in peru– here’s a compelling one: peru fact #2: since 2004, the number of peruvians living in poverty has been halved from 59% to 28%
and there’s humala’s “social inclusion” buzzword once again.
it makes sense humala is talking ‘social inclusion policies’ when it comes to growth: his original base of support is lower socioeconomic groups. he’s recently been able to recover some more support from them…
spotlight president humala: he’s seen a recent marginal dip in approval ratings — (from 53% in feb to 51% in apr) — but he remains politically strong regardless.
humala: ‘to secure development, we need to grow economically and be able to distribute that growth… what we call ‘social inclusion.’
peru fun fact: growth is expected to come in at a very impressive 6.3% clip this year.
this is peru’s first time hosting a wef regional gathering
introductory remarks have concluded– we’re talking entrepreneurship, development. the discussions to begin shortly….
peru’s president ollanta humala is up first…
here’s a fun fact for before we get started: the country with the most physicians per capita is… cuba. (with 6.7/ 1000)
excited to be liveblogging the upcoming summit — it kicks off in 10 minutes!