BiNATIONAL BORDER ECONOMIC
DEVELOPMENT (BiNED) ACTION PLAN
An ECONOMIC BORDER WALL for
TRANSORMING OUR BORDER
ECONOMY
From Brownsville to McAllen and
Reynosa to Matamoros
Regional Economic Context
• Largely a factor driven/pass-through (low value
added) economy
– Amongst the lowest Per Capita Income in the US
– Amongst the lowest education levels in the State
– Lagging in competitiveness
• Fastest population growth rate in the State over the
next 35 years (Texas Water Development Board)
Implications
• Will need more streets, more water, more jobs, more
schools…
• How will we pay for these needs?
• Even more importantly, if trends continue:
•
•
•
•
More unemployment
Lower wages and productivity
More government dependency
Continued insecurity and illegal immigration not only along the USMexico border but throughout the State
Rio South Texas Region at a Crossroads
Quality of Life
•
• Inadequate Infrastructure
High Unemployment & Low Wages
• Inadequate Healthcare
• Increasing Crime
•
Leadership
•
Foster a Regional
Binational Community
• Leverage Assets
Open to Innovation & Entrepreneurship
Education & Training
Business & Industry
•
•
High Drop Out Rates
• Dead End Careers
Little Post-Secondary Education
•
Emphasize Education & Knowledge Asset
• Invest in Knowledge-Based Industries
• Binational Technology Entrepreneurship
& Career Development
• Create Wealth
Towards Regional &
Binational Decline
Towards Regional &
Binational Prosperity
Business & Industry
Education & Training
• Emphasize Land & Physical Assets
Dependent on Tourism & Service Industries
• Limited Career Growth
•
•
Enhanced Education Access
More Graduate Degree Programs
• Research & Development
Quality of Life
• Infrastructure Serves the Population
• Promote Competition
• Recruit, Grow, and Retain Talent
between Communities
• Civic and Social Entrepreneurship
Colonialism Mentality which • Innovative Healthcare Systems
Resists “Outside” Input
• Shared Prosperity
Leadership
•
From: IC2
Path Forward – BiNED Initiative
• CREATES INTEGRATED ECONOMIC REGION from
Brownsville to McAllen, to Reynosa to Matamoros
• BASED on a world class ADVANCED/INTELLIGENT
MANUFACTURING Cluster
• FEATURES BiNED INTERNTATIONAL Manufacturing
FREE TRADE ZONES
• CHANGES DIALOGUE of the BORDER and MEXICO
– SECURE to SECURE AND PROSPEROUS BORDER
– BARBARIANS as the GATE to BUSINESS PARTNERS
– BORDER WALL to ECONOMIC DEVELOPMENT WALL
Why Advanced Manufacturing?
Supporting Trends
• Reshoring and nearshoring of manufacturing back to
North America
•
•
•
•
•
Wages vis-à-vis China
Shipping time
Intellectual property rights
Mass customization/Time to market
Shared manufacturing platform
• Brexit: From globalization to smaller
continental/regional economies
• NAFTA Economy
– self sustaining global leader
Challenge: Reshoring mostly going to interior.
But Timing is Right for the Border
• INTEGRATED Economic Regions are the FUTURE
– BiNED creates the SCALE needed to create an effective regional
economy
• NO BETTER PLACE to bring together the Best of the US and
Mexico than on THE BORDER
–
–
–
–
Innovation: Engineering/R&D and Manufacturing under one roof
Integrated Culture – Binational, bilingual and bicultural
Low cost utilities, energy and logistics
Location, location, location
• BiNED Zones – Existing Pre-Inspection Pilot Programs
– Nuevo Laredo Dual Customs Airport
– Foxcon Facility in Chihuahua
BiNED Strategy: A Single Economic
Development Plan for the BiNED Region
ECONOMIC DEVELOPMENT PLAN MATRIX:
Creating a COMPETITIVE BORDER REGION
Competitive Factors
Technology
Talent/Education
Capital/Business climate
Infrastructure
Leadership (public and Private)
Quality of life/Security
Recruit Outside
Firms
Retention and
Evolution of
Existing Firms
Build New
Companies
COMPETITIVENESS GOAL: Provide A TOTAL OPERATING
COST VALUE PROPOSTION vis-à-vis other regions
Leadership
Infrastructure
Capital
Talent
Technology
Total Operating Cost
Security
Region Site 1
Region Site 2
Region Site 3
• Competitiveness is not just about low labor costs, or short waiting times at
bridges and lower border crossing transaction costs
BiNED strategy 1: Leadership
• Collaborative private and public sector structure: BiNED
Coordinating Board (501(c)(3))
BiNED
Academia
Research/
Education/
Training
Public
Sector
Support
Groups
Private
Sector
• BiNED Manufacturing Alliance/Council (501(c)(6))
• Leadership Institute
BiNED Strategy 2: Talent/Technology
Employers
BiNED Strategy:
Education/Technology
• SINGLE COORDINATED WORKFORCE training program
for the entire BiNED region
• Entrepreneurship/Incubation programs
• Internship/Apprenticeship programs
• Network of University R&D/Technical Education
facilities
• Educational Path with multiple career pathways
• Bottom Line: World Class Educational Training Program
University/
R&D Facilities
Technical
Colleges
ISD
BiNED Strategy 3: Infrastructure
• Create a low cost-high service efficiency
water, energy and transportation binational
infrastucture system
– Regional/Binational water/wastewater facilities
and planning
– Regional/Binational energy facilities and planning
– Regional/Binational transportation facilities and
planning
•
– Innovation driven: Best
of the US and Mexico
under “one roof”
U.S. Port
of Entry
Rio Grande
River
Mexican
Port of
Entry
Mexican Customs
Preclearance
Mexican
Manufacturing
Facilities
U.S. Customs
Preclearance
BiNED International Free Trade Zone
S e r v i c e s
•
U.S.
Manufacturing
facility
Intermediate Goods
•
Credit enhancements
for border projects
Tax credits for border
manufacturing projects
Tax credits for private
R&D facilities on the
Border
Binational Free Trade
Innovation Zone
(Engineering/R&D
under same “roof” as
manufacturing line)
INTERNATIONAL
•
BRIDGE
BiNED Strategy 4: Capital/Business
Climate
Next Steps
• Finalize BiNED Coordinating Board bylaws and
funding mechanism
• Manufacturing Summit
• Complete BiNED Supply Chain Integration
Study/Economic Development Plan
• Initiate legislative efforts and seek support for:
•
•
•
•
•
BiNED Workforce development strategy
BiNED International MSA
BiNED Leadership Institute
BiNED University R&D facilities
BiNED International (manufacturing) Free Trade Zone
Rio South Texas Region at a Crossroads
Quality of Life
•
• Inadequate Infrastructure
High Unemployment & Low Wages
• Inadequate Healthcare
• Increasing Crime
•
Leadership
•
Foster a Regional
Binational Community
• Leverage Assets
Open to Innovation & Entrepreneurship
Education & Training
Business & Industry
•
•
High Drop Out Rates
• Dead End Careers
Little Post-Secondary Education
•
Emphasize Education & Knowledge Asset
• Invest in Knowledge-Based Industries
• Binational Technology Entrepreneurship
& Career Development
• Create Wealth
Towards Regional &
Binational Decline
Towards Regional &
Binational Prosperity
Business & Industry
Education & Training
• Emphasize Land & Physical Assets
Dependent on Tourism & Service Industries
• Limited Career Growth
•
•
Enhanced Education Access
More Graduate Degree Programs
• Research & Development
Quality of Life
• Infrastructure Serves the Population
• Promote Competition
• Recruit, Grow, and Retain Talent
between Communities
• Civic and Social Entrepreneurship
Colonialism Mentality which • Innovative Healthcare Systems
Resists “Outside” Input
• Shared Prosperity
Leadership
•
From: IC2