Approaching the Fourth
Industrial Revolution
A key factor for preparing our economy is
connectivity. Mexico is one of the few
countries in the world that has formally
acknowledged the right of access to
broadband Internet.
By: Enrique Peña Nieto
Mexico City In the current era of innovation, known as the Fourth
Industrial Revolution, the latest technologies are completely
transforming economic sectors at an impressive rate. This is, rightly, the
subject of the World Economic Forum Annual Meeting that will be held
this week in Davos, Switzerland. In the following years, the scope and
pace of innovation will transform the way we produce, distribute and
consume. To maximize its benefits, we must take measures that allow us
to prepare our economies and societies, with special emphasis on three
key areas: education, business environment and connectivity.
Human capital is essential to the development of an economy and the
Mexican economy is no exception. That is why my government has taken
important steps to improve education at all levels.
For example, we recently launched the National Educational
Infrastructure Certificates, private investment vehicles that will allow us to
channel approximately three billion dollars to upgrade primary school
facilities over the next three years. Moreover, in the current school year,
we have delivered tablets to nearly half of the 2.3 million fifth graders.
We are also working to enable the present and future generations to have
the necessary skills to thrive in a constantly changing labor market. Last
year, more than 110,000 students in Mexico graduated in areas such
as engineering, manufacturing and construction-a much higher figure
than in most developed countries, including France, Germany and the UK
[1].
To consolidate this progress, we are increasing public investment in
science and technology, aimed at universities and public research centers
across the country. In the past three years alone, the number of
academics in our National Research System has increased by 26% and
we have almost doubled public spending on research, innovation and
development. Recognizing the great importance of the links between
industry, academia and government, we have also increased the number
of Technology Transfer Centers to facilitate the development of new
products and businesses in areas such as biotechnology, energy and
information technologies.
At the same time, we are working hard to improve the business
environment. We have taken firm steps to maintain macroeconomic
stability. The Bank of Mexico has established an independent monetary
policy that ensures price stability and low inflation. In fact, in November
2015, the annual inflation rate was 2.21%, the lowest in the history of
Mexico. Moreover, our debt remains diversified and low. In 2015, the
relationship between debt and gross domestic product remained at
46.9%, well below the average for Latin America and the Caribbean of
55.6% - and is expected to reach 47.8% in 2016.
We also promoted Energy Reform, which has made it possible to reduce
electricity costs, eliminate monthly increases in gasoline prices and
increase the number of gas pipelines across the country, thus boosting
our competitiveness. For the first time in decades, all activities in the
energy sector have been opened up to the private sector-a strategy that
will attract an estimated 12 thousand 600 million dollars every year.
Likewise, by allowing more foreign investment in the telecommunications
sector, we have reduced the rates of telephone service, both fixed and
mobile, improving its quality and coverage.
Since micro, small and medium enterprises are the main economic
engine of Mexico, we are incorporating digital tools to expedite the
opening of new businesses, while facilitating entrepreneurs’ access to
credit from commercial banks. In this regard, the Young Credit
Program offers loans of up to $9,000; and for those looking to build their
business, this amount could increase to $150,000.
The third key factor for preparing our economy, as we approach the
Fourth Industrial Revolution, is connectivity. Mexico is one of the few
countries in the world that has formally recognized the right of access to
broadband Internet. So far during this administration, we have
connected 65,000 public spaces such as schools and libraries. This
helps to achieve our goal of enabling 70% of households and 85% of
micro, small and medium businesses to have access to high speed
Internet.
However, connectivity is not only digital, physical infrastructure is also
essential. Mexico is currently a manufacturing powerhouse and one of the
leading exporters of flat screens, vehicles, auto parts, computers and cell
phones. State-of-the-art infrastructure will enable us to add value and
diversify our export industries.
We are therefore channeling more than $460 billion USD for the
construction and modernization of thousands of kilometers of roads
and highways, as well as to expand and improve our mass transit
networks. Other large-scale projects include the new Mexico City
International Airport and the development of port projects to nearly double
our capacity in the Pacific Ocean and the Gulf of Mexico. In the long term,
we will convert Mexico into a world-class logistics platform.
Mexico remains committed to promoting free trade, a powerful engine of
growth. In the past three years, we have expanded our network of trade
agreements with the Pacific Alliance and more recently the Trans-Pacific
Partnership. As a result, we will have a total of 13 agreements that
provide preferential access to 52 countries, with a potential market of 300
billion consumers.
My government has taken strategic steps to strengthen the Mexican
economy and address the major challenges of the future, such as an
increasing demand for specialized professionals in a wide range of areas
of expertise, and an urgent need to strengthen connectivity, especially in
more remote rural areas (where 9% of Mexicans live). We must provide
the necessary tools for every Mexican and every business to be able to
seize the opportunities offered by the Fourth Industrial Revolution, and
ensure that future generations can also develop their full potential in an
increasingly changing world.
[1] http://www.weforum.org/agenda/2015/09/which-country-mostengineering-manufacturing-and-construction-graduates/