Regional Agenda
World Economic Forum
on Latin America
Delivering Growth,
Strengthening Societies
Lima, Peru 23-25 April 2013
© World Economic Forum
2013 - All rights reserved.
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The views expressed are those of certain participants in the
discussion and do not necessarily reflect the views of all
participants or of the World Economic Forum.
REF 260413
Contents
3
Preface
4
News from Lima
6
Modernizing Economies for Dynamic Growth
Preface
The 2013 World Economic Forum on Latin America convened
the presidents of Mexico, Panama and Peru, numerous
prominent public and private sector leaders, and civil society
and academic experts to debate how to deliver growth and
strengthen the foundations of societies across the region. More
than 650 participants took part, representing young leaders,
social entrepreneurs, businesses, universities and governments
from across Latin America and around the world. The meeting
counted on the full support of President Ollanta Humala and the
Government of Peru.
14 Strengthening Society through Innovation
22
Building Resilience for Sustainable Development
32
Acknowledgements
33
Further Information
Marisol Argueta de
Barillas
Senior Director
Head of Latin
America
The meeting took place in a context of particular strength and
promise in most countries of Latin America. This year, the region’s
GDP is expected to grow at an average rate of nearly 4%, public
finances are sound and have demonstrated resilience in the wake
of stresses following the 2008 international financial crisis. Foreign
investment flows, economic diversification and tourism to the region
are increasing and Latin American countries are making significant
progress in reducing poverty.
The theme of the meeting, “Delivering Growth, Strengthening
Societies”, offered an opportunity to reflect, discuss and take
action at a time when most Latin American nations have been
experiencing satisfactory levels of economic growth; therefore, it
is timely to invest in human capital and implement visionary and
innovative policies to turn growth into long-term development with
social prosperity and environmental sustainability.
It is clear that economic progress without social development is not
sustainable, while social development without economic growth is
unviable.
However, Latin American governments, businesses and civil
society face significant challenges to maintain these successes
and advance towards sustainable growth and social cohesion.
Discussions included the sharing of novel and diverse practices to
address the existing social gaps, while it was acknowledged that
the impressive expansion of the middle class in the region in the
past five years creates new pressures for policy-makers to deliver
economic growth, quality public services and stronger institutions
that respond to the needs of an informed citizenry.
The lack of adequate urban planning in this most urbanized
emerging region places enormous stresses on natural resources
and accelerates the use of fossil fuels and environmental
degradation. The huge youth contingent – more than 150 million
Latin Americans are between 15 and 29 years old – requires
education and vocational training to maximize the potential for an
expanding and productive labour force.
The vast and diverse natural resources of Latin America, including
the enormous and fragile Amazon basin ecosystem, must be
safeguarded and preserved to assure sustainable economic growth
in the future. The region’s cultural heritage and biodiversity offer
promise for developing growth around tourism and agriculture,
but these unique resources need to be managed with caution and
sensitivity so that monuments and environments do not deteriorate.
Leaders and experts at the World Economic Forum on Latin
America described and exchanged best practices and success
stories for promoting steady, continued economic growth and
sound social and environmental development in Latin America.
Highlights of the meeting are described in this report.
Delivering Growth, Strengthening Societies
3
News from
Lima
Co-Chairs
Baroness
Valerie Amos
Undersecretary-General
for Humanitarian Affairs
and Emergency Relief
Coordinator
United Nations
New York
Michel M. Liès
Group Chief Executive
Officer
Swiss Re
Switzerland
Carlos Rodríguez-Pastor
Chairman
Intercorp
Peru
Arne Sorenson
President and Chief
Executive Officer
Marriott International
USA
Gérard Mestrallet
Chairman and Chief
Executive Officer
GDF SUEZ
France
First Social
Innovation Summit
Held in Lima
Three leading innovators were named
Latin America Social Entrepreneurs of the
Year 2013 at the World Economic Forum
on Latin America: Cybele Amado de
Oliveira, Chapada Institute for Education
and Research, Brazil; Mois Cherem,
ENOVA, Mexico; and Kurt Holle, Rainforest
Expeditions, Peru. The awards were
conferred by Hilde Schwab, Chairperson
and Co-Founder of the Schwab Foundation
for Social Entrepreneurship, in the presence
of President Ollanta Humala of Peru,
President Ricardo Martinelli of Panama
and President Enrique Peña Nieto of
Mexico. The winners were identified in their
respective countries for their outstanding
innovative and practical approaches
to benefit society through a selection
process involving the Foundation’s Partner
organizations – Fundacion Venezuela
Sin Limites, the International Labour
Organization, El Mercurio and Folha do
São Paulo. Since its inception in 2000, the
Schwab Foundation has been identifying
the world’s leading social entrepreneurs
and involves the community of more than
250 award winners in advancing the field
of social innovation in collaboration with
corporate, government and academic
stakeholders.
Download the policy guide: http://reports.
weforum.org/social-innovation-2013
4
World Economic Forum on Latin America
News from Lima
Smart Tourism
Responsible
Mining
Latin American
Social
Entrepreneurs
Lauded
Ministers of tourism and government
representatives from the tourism sector
of Peru, Colombia and Ecuador signed
at the World Economic Forum’s Travel &
Tourism Summit a Letter of Intent on Smart
Tourism to implement a joint electronic
visa system. The aim of the system is
to facilitate an easier and more secure
entry for visitors to the region. Adopting
such a “smart” system will maximize the
use of technology to improve efficiency
in existing visa processes and remove
obstacles facing the mobility of international
tourists. Moving to a smart visa policy is
also
expected to contribute to the growth
06
of the tourism sector and, by extension,
to economic development. During the
Summit, the Forum also launched The Peru
Travel & Tourism Competitiveness Report
2013, which highlights how the country’s
travel and tourism sector can contribute
to economic growth and job creation if
further investment is devoted to the factors
hindering the sector’s development.
Mining is a key driver of global economic
growth, capable of creating long-term
positive impact on lives, societies and
nations. Although it has the potential
to transform the economic prospects
of mineral-rich developing countries,
governments and communities are
increasingly questioning the role of this
sector. Launched in Lima, the World
Economic Forum’s Responsible Mineral
Development Initiative 2013 report
introduces the Mineral Value Management
(MVM) tool, designed to enhance mutual
understanding of the drivers of value
from mining, and to provide a means to
measure and communicate the needs
and expectations of various stakeholders.
The MVM is based on a number of
dimensions, including fiscal and regulatory
environments; employment and skills;
environment and biodiversity; local
supply chains; and infrastructure. The
report also features the results of a global
survey testing stakeholder expectations
of value creation. Findings show that in
Latin America there are big differences
between stakeholders on the importance of
infrastructure as a value driver.
Three leading innovators were named
Latin America Social Entrepreneurs of the
Year 2013 at the World Economic Forum
on Latin America: Cybele Amado de
Oliveira, Chapada Institute for Education
and Research, Brazil; Mois Cherem,
ENOVA, Mexico; and Kurt Holle, Rainforest
Expeditions, Peru. The awards were
conferred by Hilde Schwab, Chairperson
and Co-Founder of the Schwab
Foundation for Social Entrepreneurship, in
the presence of President Ollanta Humala
of Peru, President Ricardo Martinelli of
Panama and President Enrique Peña
Nieto of Mexico. The winners were
identified in their respective countries
for their outstanding innovative and
practical approaches to benefit society
through a selection process involving
the Foundation’s Partner organizations
– Fundacion Venezuela Sin Limites, the
International Labour Organization, El
Mercurio and Folha do São Paulo. Since its
inception in 2000, the Schwab Foundation
has been identifying the world’s leading
social entrepreneurs and involves the
community of more than 250 award
winners in advancing the field of social
innovation in collaboration with corporate,
government and academic stakeholders.
Download the report: http://wef.ch/ttperu
Read the report: http://wef.ch/mmrdmi
04
Learn more about the award winners:
http://wef.ch/schwabfoundationperu
Delivering Growth, Strengthening Societies
5
Modernizing Economies for Dynamic Growth
Reforms and Freer
Trade, at Last
Several Latin American countries have
started to reap the benefits of structural
reforms and trade liberalization efforts,
while regional GDP is expected to
expand on average by almost 4% this
year. At this rate, Latin America looks
poised to improve its performance, with
some “multilatina” companies already
becoming global challengers.
We have to get used to a
completely new image of
Latin America. The region
can be the hallmark for
inclusive growth policies.
Klaus Schwab Founder and Executive
Chairman, World Economic Forum
6
World Economic Forum on Latin America
Modernizing Economies for Dynamic Growth
01
02
Latin America has been laying the
foundation for strong and inclusive
growth following decades of
economic crises. Market-friendly
policies have been adopted in
various countries and some have
already engaged successfully on
the path of structural reforms,
which is due to boost the region’s
growth performance. A GDP
expansion of almost 4% on average
looks encouraging, but it is also
insufficient to meet the region’s
potential.
Latin America has an opportunity
to consolidate the modernization
of its economies. Some countries
are already showing the way, as
they pursue an ambitious reform
agenda. Peru, Mexico and Panama,
together with Chile and Colombia,
are examples that stand out.
Peru’s GDP has tripled in the most
recent decade, growing by 6%
on average, and inflation is one
of the lowest in the region. Seven
and a half million people have
been lifted out of poverty, which
is equivalent to one-quarter of the
population. This is symptomatic
of a new era of inclusive growth.
Social inclusion is also spectacular
in Brazil, where some 40 million
people benefited from conditional
cash transfers in recent years and
which is developing new projects
to continue building on its poverty
alleviation success.
In Peru, the main asset for
business has been predictability
and the ability to plan the future
after years of uncertainty. The
government is also committed to
diversifying its economy, which
01: Francisco J. Sánchez, US Undersecretary of
Commerce for International Trade; Enrique García
Rodríguez, President and Chief Executive Officer,
CAF - Development Bank of Latin America,
Caracas; Anabel González, Minister of Foreign
Trade of Costa Rica; Carlos de Vega, Senior
Correspondent, Anchor News and Talk Show
Host of Agenda, Deutsche Welle, Germany; Luis
Miguel Castilla Rubio, Minister of Economy and
Finance of Peru; and Arne Sorenson, President
and Chief Executive Officer, Marriott International,
USA
02: Klaus Schwab, Founder and Executive
Chairman, World Economic Forum; Ollanta
Moises Humala Tasso, President of Peru; Ricardo
Martinelli, President of Panama; and Enrique
Peña Nieto, President of Mexico
We are trying to build a
country of intellectual
capability, not just of natural
resources.
Ollanta Moises Humala Tasso President of
Peru
Delivering Growth, Strengthening Societies
7
has been dependent on mineral
commodities. “We need a greater
diversification of our production
and to enhance productivity in
the country,” said Ollanta Humala,
President of Peru. “We need to
democratize productivity in order
to increase growth and achieve
sustainable development.”
Mexico has also launched a vast
reform agenda backed by all
political forces. Its new government
has been active on several fronts
to seek greater competition in
telecommunications and energy,
while pushing for tax and financial
reforms to boost credit. “Peru
and Panama are the champions
of growth [in the region]. Mexico
does not want to lag behind,” said
Enrique Peña Nieto, President of
Mexico.
Ricardo Martinelli, President of
Panama, stressed the importance
of engaging the business
community to participate actively in
the transformation of the region to
deliver enhanced productivity and
sustainable growth. “I would ask
the business community to also
participate in politics – and not only
through donations,” he said.
On the trade front, an important
initiative has been spearheaded by
Mexico, Peru, Colombia and Chile:
the Pacific Alliance. While hosting
38% of the population of Latin
America and the Caribbean and
34% of its GDP, the group already
accounts for half of intraregional
trade, 50% of regional trade with
Asia and 42% of foreign direct
investment in Latin America,
according to the Inter-American
Development Bank. The free trade
agreement will lead to the removal
of 90% of tariffs between member
countries; there is a commitment
towards free movement of capital,
The conversation around
growth includes a
conversation around
inclusion.
Baroness Valerie Amos UndersecretaryGeneral for Humanitarian Affairs and
Emergency Relief Coordinator, United Nations,
New York; Co-Chair of the World Economic
Forum on Latin America
01
02
02
goods, services and people.
Panama and Costa Rica have said
they are eager to join the Pacific
Alliance, and several countries have
already applied for observer status,
including Canada, New Zealand,
Spain and Uruguay.
Momentum has clearly been built
and regional integration will favour
Latin American countries’ insertion
in the world economy. “Each
economy is too small on its own.
Integration is a condition for these
countries to participate in the global
economy,” said Rafael Roncagliolo,
Minister of Foreign Affairs of Peru.
The economic crisis in developed
02
economies also means that Latin
American countries need to
strengthen intraregional trade. At
present, only 20% of overall Latin
American trade is made among
Latin American countries, while
the similar proportion in Asia is
48%, according to Luis Alberto
8
World Economic Forum on Latin America
Modernizing Economies for Dynamic Growth
Latin America’s share of trade to North America has been decreasing over the last decade but still remains high
Latin America’s exports by region
Source: UNCTAD Statistics
Note: Regions as defined by UNCTAD. Export data was calculated in USD. Compound annual growth rates (CAGR) are calculated using total values of exports in constant USD
70%
Compound annual growth rate (2002-2011) of Latin America's total value of exports
to North America is 9.4% and 35.5% for its exports to China
60
% of total exports
50
North America
40
Intratrade
(Latin America
and Caribbean)
30
EU
20
ROW
China
10
0
Asia Pacific
ex China
2002
2003
2004
03
01: Børge Brende, Managing Director and Member
of the Managing Board, World Economic Forum; Luis
A. Moreno, President, Inter-American Development
Bank, Washington DC; Carolina Trivelli Avila, Minister
of Development and Social Inclusion of Peru; Michel
M. Liès, Group Chief Executive Officer, Swiss Re,
Switzerland; and Marcelo Côrtes Neri, Minister of
Strategic Affairs of Brazil
02: Klaus Schwab, Founder and Executive Chairman,
World Economic Forum; Hilde Schwab, Chairperson
and Co-Founder, Schwab Foundation for Social
Entrepreneurship, Switzerland; Nadine Heredia
Alarcon, First Lady of the Republic of Peru; and Ollanta
Moises Humala Tasso, President of Peru
03: Enrique García Rodríguez, President and Chief
Executive Officer, CAF - Development Bank of Latin
America, Caracas
04: Luis A. Moreno, President, Inter-American
Development Bank, Washington DC
05: Luis Videgaray Caso, Secretary of Finance and
Public Credit of Mexico
06: José Miguel Insulza, Secretary-General,
Organization of American States (OAS), Washington DC
2005
04
2006
2007
2008
2009
2010
2011
05
06
Delivering Growth, Strengthening Societies
9
The transitioning of poor/vulnerable populations has doubled Latin America’s middle
class in the last 15 years
Intragenerational mobility in Latin America, c.1995 and c.2010
Source: World Bank, ‘Economic Mobility and the Rise of the Latin American Middle Class’ (2013).
Note: Income levels on per capita basis in purchasing power parity terms at 2005 prices: poor = income <US$4/day; vulnerable =
income of US$4–US$10/day; middle class =income >US$10/day. Eighteen Latin American countries assessed - Argentina (1994
and 2009); Bolivia (1992 and 2007); Brazil (1990 and 2009); Chile (1992 and 2009); Colombia (1992 and 2008); Costa Rica (1989 and
2009); Dominican Republic (1996 and 2009); Ecuador (1995 and 2009); El Salvador (1991 and 2008); Guatemala (2000 and 2006);
Honduras (1994 and 2009); Mexico (2000 and 2008); Nicaragua (1998 and 2005); Panama (1994 and 2009); Peru (1999 and 2009);
Paraguay (1999 and 2009); Uruguay (1989 and 2009); and Venezuela (1992 and 2006). 100%
90
21%
80
45%
Each economy is too small
on its own. Integration is a
condition for these countries
to participate in the global
economy.
% of population
70
10
World Economic Forum on Latin America
Middle class
46%
24%
10
0
02
5%
36%
40
20
Rafael Roncagliolo Minister of Foreign Affairs of
Peru
Jordan
Kassalow Founder and Co-Chairman,
02
VisionSpring, USA; Social Entrepreneur
33%
41%
50
30
01
Solutions must have
economically viable
business models behind
them. There is not enough
charity out there.
60
50%
c
c.1995
1995
c.2010
c
2010
Vulnerable
Poor
Modernizing Economies for Dynamic Growth
Moreno, President, Inter-American
Development Bank, Washington
DC.
03
Latin America is becoming
more resilient thanks to stronger
companies. Several multinational
companies from Latin America (socalled multilatinas) that emerged in
recent decades have now become
global challengers – and not only in
commodity-related sectors. “There
is a broad range of industries
where Latin American companies
are becoming more competitive,”
said Hans-Paul Bürkner, Chairman,
The Boston Consulting Group, 01
Germany.
02
Besides the Brazilian oil and mining
giants Petrobras and Vale, other
global challengers include Mexico’s
Cemex, which is present in 36
countries, as well as food and
retail companies such as Brasil
Foods, Mexico’s Bimbo and Chile’s
Falabella. In the airlines industry,
Chile’s LAN and Brazil’s TAM have
joined forces to form Latam. Latin
American companies have ample
experience in dealing with crises at
home and are well prepared to deal
with volatile business environments.
But the future of the region will
also lie in the strength of its small
and medium-sized enterprises
and family-run businesses, which
can have greater participation in
regional growth in the future.
01: Bruce Mac Master, Director,
Department for Social Prosperity,
Colombia
02: Luis Miguel Castilla Rubio,
Minister of Economy and Finance
of Peru
03: Ollanta Moises Humala
Tasso, President of Peru;
Ricardo Martinelli, President of
Panama; and Enrique Peña Nieto,
President of Mexico
Latin America: Delivering Growth,
Strengthening Societies
President Ollanta Humala of Peru, President Ricardo Martinelli of Panama and
President Enrique Peña Nieto of Mexico called for inclusive growth in the region
through comprehensive reforms in a discussion on their approaches to ensure
sustained economic growth and regional progress.
Despite national differences, Mexico, Panama and Peru exemplify countries
whose governments are pushing comprehensive reform agendas and
implementing public policies to bring about economic growth and inclusive
prosperity at all levels of society. President Humala explained that his mission for
Peru is to grow economically and “distribute this growth throughout society”. His
credo of “social inclusion as a result of growth, and growth as a result of social
inclusion” was echoed by presidents Peña Nieto and Martinelli.
All three countries are implementing economic and financial reforms that
permit greater private sector competition domestically and draw growing
investment from abroad. Social policies in healthcare, nutrition and education are
contributing to better living standards, greater social mobility and more economic
opportunity, especially for the poor. A political system of participatory democracy
invites dialogue among different stakeholders on the nature of reforms and ways
to implement them successfully.
The sustained growth of Peru, Panama and Mexico, resulting from these policies
and their integration into the regional and global economies through tax treaties
and free trade agreements, is changing the status of Latin America in the
global context. Latin America is no longer a mere spectator but a player on the
international stage.
Delivering Growth, Strengthening Societies
11
01
I would ask the business
community to also
participate in politics – and
not only through donations.
Ricardo Martinelli President of Panama
New Engines of Growth
Economic growth in Latin America has proved to be resilient to the global
economic uncertainty, and the inclusion of the region in the global economy will
favour the emergence of new engines of growth. Most countries understand that
relying on commodities is not sustainable and are looking for ways to involve their
industries and develop new services to be inserted in the global value chain. The
spectrum is large, and opportunities have to be seized.
Massive investments are expected in information technology and
telecommunications. America Movíl, for example, a Mexican telecommunications
operator, said it is investing US$ 50 billion over five years to respond to growing
demand in broadband services. But traditional sectors also have a role to play
thanks to innovation and technology. This includes manufacturing and even
agriculture in countries such as Brazil, which has a strong export-oriented
agribusiness sector. Investors also expect a more favourable, market-friendly
business environment in order to boost competitiveness.
“Latin America should take advantage of the current stability to take the right
action and create the right business models for sustainable growth,” said Jordi
Botifoll, President, Latin America, Cisco Systems, USA. In the meantime, old
challenges such as skills shortages and the necessity of encouraging talent still
need to be addressed.
It is in a company’s interest
to work with the community.
This brings it long-term
benefits.
Arne Sorenson President and Chief Executive
Officer, Marriott International, USA; Co-Chair of
the World Economic Forum on Latin America
12
World Economic Forum on Latin America
01: Jose Luis Silva Martinot, Minister of Foreign Trade and Tourism of Peru
02: Ricardo Avila, Editor-in-Chief, Portafolio, Colombia; Alicia Barcena Ibarra,
Executive Secretary, United Nations Economic Commission for Latin America
and the Caribbean (ECLAC), Santiago; Carlos Danel, Co-Chief Executive Officer,
Compartamos, Mexico; Sandra Jovchelovitch, Professor of Social Psychology and
Director, MSc in Social and Cultural Psychology, London School of Economics and
Political Science, United Kingdom; Bruce Mac Master, Director, Department for
Social Prosperity, Colombia; and Sandy Macrae, Global Medical Officer, Takeda
Pharmaceuticals International, USA
03: Adam Blackwell, Secretary of Multidimensional Security, Organization of
American States (OAS), Washington DC; Jose Guardo, Co-Head, Latin America,
Clifford Chance, Spain; Roberta S. Jacobson, US Assistant Secretary of State for
Western Hemisphere Affairs; Juan Federico Jiménez Mayor, Prime Minister of Peru;
Alfredo Romero, Partner, Rosich Himiob Romero Law Firm, Venezuela; and Luis
Videgaray Caso, Secretary of Finance and Public Credit of Mexico
04: Hans-Paul Bürkner, Chairman, The Boston Consulting Group, Germany
Modernizing Economies for Dynamic Growth
02
03
We need to democratize
productivity in order to allow
for a sustainable growth.
04
01
Enrique Peña Nieto President of Mexico
Delivering Growth, Strengthening Societies
13
Strengthening Society through Innovation
Building on Success
Latin America has been an economic
success, but it can do better. The
diversity of its people and innovative
spirit show that further progress in the
region is possible. Education and
inclusion, flexibility and technology,
democratic values and social
entrepreneurship are the paths to a
modern and humane society.
Poverty does not create
violence. Social exclusion
does.
Oscar Adolfo Naranjo Trujillo Director, Instituto
Latinoamericano de Ciudadanía - ILC, Mexico
14
World Economic Forum on Latin America
Strengthening Society through Innovation
Latin America is one of the world’s
economic success stories. Most
countries are growing at a pace
well above the global average while
paying down debt and attracting
foreign investment. Some of this new
wealth is even reaching the bottom
of the pyramid: the poverty rate fell
to 28.8% in 2012 from 43.9% in
2002. But the region remains the
world’s most unequal. Uruguay, Latin
America’s most egalitarian country,
has the same GINI coefficient as the
Philippines, the most unequal nation
in Asia.
To build on past successes, close
the social gap and bring true human
development, Latin America must
now unleash its people’s creativity
and powers of innovation.
Education is the key to progress, but
the latest OECD global survey has
shown that every Latin American
country’s school system is in the
bottom third. Schools and universities
are not providing graduates with
the skills employers demand.
However, opportunity resides in this
01
shortcoming, as investment and new
educational policies can propel Latin
America forward.
Government policies must create
a culture that values mathematics
and science. Providing children with
technology will spark their interest
and prepare them for the modern
economy; the digital divide is an
opportunity divide. Companies must
cooperate with schools to close the
skills mismatch.
Teachers and students should
be measured; Mexico’s recently
implemented assessment system is
promising. Ineffective teachers must
be offered training and, if necessary,
retired. Panama is collaborating with
businesses, including Microsoft and
Intel, to provide schools with up-todate technology and to train teachers
to use them.
One of Peru’s largest companies,
Intercorp, is operating schools and
a university, while the government is
increasing education spending and
offering scholarships for international
02
Students today want to
learn in a new way, not just
by sitting and listening to a
teacher.
Lucy Molinar Minister of Education of Panama
01: Marisol Argueta de
Barillas, Senior Director,
Head of Latin America,
World Economic Forum
02: Carlos García Moreno
Elizondo, Chief Financial
Officer, América Movil,
Mexico
03: Jorge Humberto
Merino Tafur, Minister of
Energy and Mining of Peru
03
Delivering Growth, Strengthening Societies
15
In Latin America, women on average
complete more years of schooling
than men, but they work less, earn
less and are less likely to advance to
leadership positions.
Government policies must ensure
women’s rights, ranging from
reproductive rights to the right to
open a bank account and start a
small business. Larger businesses
must understand that gender
discrimination is putting them at a
competitive disadvantage, as they
are excluding the continent’s most
educated workers.
Latin America currently has a
demographic “bonus” with a young
workforce, but unless this human
capital receives the necessary
intellectual tools, its potential will
be wasted. Latin America should
prepare now for when this population
ages. Life-long training opportunities
and preventive healthcare can keep
people productive well into old age.
The services sector contributes more than half of GDP and employment in selected
Latam countries
Contribution to GDP and employment by sector, 2009
Source: World Bank, PwC Analysis
Note: The seven largest Latin American economies were determined by largest values of 2012 GDP in current prices USD. All
data as of 2009 (latest available) except for employment data for Venezuela (2008). Total employment rate is calculated based on
unemployment rate, defined as share of the labour force that is without work but available for, and seeking, employment. Definitions
of labour force and unemployment differ by country. Value added is the net output of a sector after adding up all outputs and
subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and
degradation of natural resources. Industry comprises value added in mining, manufacturing, construction, electricity, water and gas.
Services includes value added in wholesale and retail trade (including hotels and restaurants), transport, and government, financial,
professional, and personal services such as education, health care, and real estate services. Also included are imputed bank service
charges, import duties and any statistical discrepancies noted by national compilers as well as discrepancies arising from rescaling.
Agriculture includes forestry, hunting, and fishing, as well as cultivation of crops and livestock production.
100%
90
% of GDP and % of total employment
postgraduate study. “We are trying
to build a country of intellectual
capability, not just of natural
resources,” said Ollanta Humala,
President of Peru.
GDP sector
80
Agriculture
70
Industry
Services
60
Employment
sector
50
Agriculture
40
Industry
Services
30
20
10
0
Argent
Argentina
entina
Brazil
Br
raz
razil
Chil
Chile
hile
e
Ecuador
Ecu
uad
dor
Mexi
Mexico
exic
co
Per
Peru
eru
u
Venez
Venezuela
ezu
uela
01
Flexible labour markets, an open
economy and a stable, transparent
legal framework will facilitate
investment and entrepreneurship.
Tax breaks can encourage not
only corporate research and
development, but also financing for
social entrepreneurs who seek to
earn profits while serving the poor.
Governments need long-term
strategic plans that will last beyond a
single administration, giving business
the confidence to invest. Transfer
programmes such as Brazil’s Bolsa
Familia have lifted millions from
poverty and established structures
that social entrepreneurs and NGOs
can also use.
Companies and individuals must not
be afraid of failure. Legal protections,
such as the separation of assets
between individuals and companies,
will encourage productive risktaking. Government policies should
16
World Economic Forum on Latin America
01: Gabriela Frias, Anchor, CNN en Español,
USA; Alvaro Rodriguez Arregui, Co-Founder
and Managing Partner, IGNIA Partners,
Mexico; Marcelo Côrtes Neri, Minister of
Strategic Affairs of Brazil; Jordan Kassalow,
Founder and Co-Chairman, VisionSpring,
USA; Carolina Trivelli Avila, Minister of
Development and Social Inclusion of Peru;
and Michel M. Liès, Group Chief Executive
Officer, Swiss Re, Switzerland
02: Gary Coleman, Managing Director,
Global Industries, Deloitte, USA
03: Carolina Trivelli Avila, Minister of
Development and Social Inclusion of Peru
04: Participants in the session on The
Innovation Ecosystem
Strengthening Society through Innovation
02
03
Closing Latin
America’s Gender
Gap
The World Economic Forum’s Global
Gender Gap Index 2012 measures the
gender gap of 135 countries in four
areas: economic participation, education
attainment, health and survival, and
political empowerment.
How well did Latin America do on the
overall Index? By 2012, the region had
closed 69% of its gender gap (100%
represents perfect equality between the
sexes). This compares, for example, with
59% in the Middle East and North Africa
in 2012.
04
Leading the way is Nicaragua, which
came in 9th in the global rankings. This
impressive top-10 ranking is largely a
result of scoring well on the political
empowerment sub-index, where it
came in fifth. In Nicaragua, 40% of
parliamentarians are women and 46% of
ministers are women.
Coming in 19th place is Cuba. The
country has a high proportion of women
among professional and technical
workers (60%). It is also the country
with the highest percentage of women
parliamentarians among the 135
countries surveyed (45%).
incentivize dispersed ownership for
corporations, as family companies
are often conservative and nepotistic
instead of ambitious and creative.
Financial inclusion, especially through
microfinance, gives individuals the
tools to create their own jobs.
make the informal economy formal,
with legal rights and obligations.
“Poverty does not create violence.
Social exclusion does,” said Oscar
Adolfo Naranjo Trujillo, Director,
Instituto Latinoamericano de
Ciudadanía - ILC, Mexico.
Latin America, with only 9% of the
world’s population, is responsible for
46% of the world’s violent deaths.
Drugs fuel much of this violence, but
the term “war on drugs” is part of an
old policy framework. New and better
solutions exist.
Individuals and businesses in Latin
America spend on aggregate more
on security than governments do.
Successful security programmes
will transfer some of the private
sector’s funding and knowledge
to the public sector. Colombia, for
example, has instituted a special
security tax on high net worth
citizens. This extra funding channel
has transformed security and given
businesspeople an opportunity to
demand accountability. Business
leaders can collaborate by sharing
Public security must become a
democratic value, focused on
protecting citizens as well as the
state. A holistic approach must
include not only anti-poverty
programmes, but programmes to
Thanks to an increase in women holding
ministerial positions, Barbados moved
up six places to 27th. The Caribbean
nation is also one of the three countries
from the region (along with Brazil and the
Bahamas) that have closed the gender
gap in both the education attainment and
health and survival sub-indexes, and is
the best performer on literacy rates and
holds the region’s highest position in the
wage equality survey.
With 39% of parliamentarians being
female, Costa Rica came in 29th place,
and is one of four countries from the
region that have closed the educational
attainment gender gap. Following right
behind is Bolivia, which shot up an
impressive 32 positions to 30th place, the
greatest increase for a Latin American
country. The move is predominantly due
to a significant increase in the percentage
of women in ministerial positions (from
20% to 45%).
Read the Global Gender Gap Report 2012:
www.weforum.org/reports/global-gendergap-report-2012
Delivering Growth, Strengthening Societies
17
More women than men are enrolled in tertiary
education in Latin America
01
Net enrolment rate in tertiary education by gender in Latin America
Source: World Economic Forum
42%
33%
good management practices.
Security forces, with their size and
complexity, are a management
challenge.
Preserving democracy is the starting
point on any debate and that is the
key at the moment in Latin America.
Above and beyond voting and the
rule of authority, it is important to
make the economy more inclusive
and more open to the people. If
development does not provide
opportunities for growth for the
majority, it cannot be sustained. And
if it is not sustained, then democracy
itself will be in jeopardy.
Building institutions is important
and will become more and more
of a reference. Future investment
will not be decided as clearly on
ratings, but on the strength of
institutions. Nations that create
powerful, transparent, clean and firm
institutions will be those that have
credibility and stability, and therefore
will attract investment.
Whether in security, social
entrepreneurship or education,
collaboration between the private and
public sectors can provide the space
for innovation to flourish in Latin
America, making the next decade not
only one of growth, but also of social
inclusion and human development.
18
World Economic Forum on Latin America
Everyone must be involved
in improving education. This
is a 20-year investment.
Carlos Rodriguez-Pastor Chairman, Intercorp,
Peru; Co-Chair of the World Economic Forum
on Latin America
Closing the gender gap is an
enormous opportunity for
Latin America, since women
are more educated than
men.
Ricardo Hausmann Director, Center for
International Development, Harvard Kennedy
School, Harvard University, USA; Global
Agenda Council on New Economic Thinking
01: Ricardo Hausmann, Director, Center for
International Development, Harvard Kennedy
School, Harvard University, USA; Mari Elka
Pangestu, Minister of Tourism and Creative Economy
of Indonesia; Gary Coleman, Managing Director,
Global Industries, Deloitte, USA; Kátia Abreu,
Senator from Tocantins, Federal Senate, Brazil, and
President, Brazilian Confederation of Agriculture and
Livestock – CAN; Carlos García Moreno Elizondo,
Chief Financial Officer, América Movil, Mexico;
Jon Azua, President and Chief Executive Officer,
Enovatinglab, Spain; and Jordi Botifoll, President,
Latin America, Cisco Systems, USA
02: Participants in the session on Old Problems,
New Solutions
03: Børge Brende, Managing Director and Member
of the Managing Board, World Economic Forum;
Monica Flores Barragán, Regional Managing
Director, Latin America, ManpowerGroup, Mexico;
Janet Longmore, Founder and Chief Executive
Officer, Digital Opportunity Trust (DOT), Canada;
Susan L. Segal, President and Chief Executive
Officer, Council of the Americas, USA; Carlos
Rodriguez-Pastor, Chairman, Intercorp, Peru; Lucy
Molinar, Minister of Education of Panama; and
Elizabeth Tinoco, Assistant Director-General and
Regional Director, Latin America and the Caribbean,
International Labour Organization (ILO), Lima
Strengthening Society through Innovation
01
02
Turning Poverty into
Profits
Paul Polak, Founder, International
Development Enterprises, USA, leads a
firm that is on its way to bringing clean
water to hundreds of millions of people
while providing jobs and making a profit.
“Conventional development has failed,”
Polak said in a one-on-one session
during the World Economic Forum
on Latin America. “Charity does not
move people out of poverty. Corporate
social responsibility is for the most part
cosmetic. We need a new model.”
03
Polak is aiming at a giant and
underserved market: the 2.7 billion
people who live on US$ 2 or less a day.
With radically affordable technologies
and large-scale, economic distribution
models, entrepreneurs can profit from
this market. In India, Polak’s firm Spring
Health developed a device the size of
a breadbox that costs US$ 200 and
can purify 50,000 litres of water a day.
In partnership with small local stores,
motorcyclists and rickshaw drivers,
Spring Health is charging an average
of 1 cent a litre to deliver clean water to
homes in small villages in eastern India.
That price is enough for stores, drivers
and Spring Health to make a profit.
Polak is already working on three other
companies, two in energy and one in
affordable nutrition. Within 10 years, all
these companies should have at least
100 million low-income customers and
US$ 10 billion in annual sales while
generating enough profit to attract
investors.
Delivering Growth, Strengthening Societies
19
01
02
Before, workers went were
the companies were. Now
companies go where they
can find qualified
employees.
Monica Flores Barragán Regional Managing
Director, Latin America, ManpowerGroup,
Mexico
01
03
20
World Economic Forum on Latin America
04
01: Roberto Salas, Chief
Executive Officer, Masisa,
Chile; Juan Carlos CastillaRubio, Chief Executive
Officer, Planetary Skin
Institute, USA; Ivonne
A-Baki, Secretary of State
for the Yasuní-ITT Initiative of
Ecuador; Nicolas Ibarguen,
Publisher and Editor,
Poder Magazine, USA;
and Virgílio Maurício Viana,
General Director, Fundação
Amazonas Sustentável,
Brazil
02: Enrique Acevedo,
Anchor, Univision, USA;
José Miguel Insulza,
Secretary-General,
Organization of American
States (OAS), Washington
DC; Oscar Adolfo Naranjo
Trujillo, Director, Instituto
Latinoamericano de
Ciudadanía - ILC, Mexico;
Michael Botticelli, Deputy
Director, National Drug
Control Policy, USA; and
Washington de Oliveira
Rimas, Director, Cultural Afro
Reggae, Brazil
03: Diego Molano Vega,
Minister of Information
and Communications
Technologies of Colombia
04: Edwin Bernbaum,
Principal, Peak Paradigms:
Leadership & Teamwork,
USA; and Arturo Condo,
President, INCAE Business
School, Costa Rica
01: Participants in the session on The Innovation
Ecosystem
02: Francisco J. Sánchez, US Undersecretary of
Commerce for International Trade
03: James S. Turley, Chairman and Chief Executive
Officer, Ernst & Young, USA; Gail Becker, Chair,
Canada, Latin America and Western Region, US,
Edelman, USA; Hernando de Soto, President, Instituto
Libertad y Democracia, Peru; Augusto de la Torre,
Chief Economist, Latin America and the Caribbean,
World Bank, Washington DC; Karl Lippert, President,
SABMiller Latin America, USA; and Marcelo Côrtes
Neri, Minister of Strategic Affairs of Brazil
04: Tatyana Orozco, Vice-Minister of Tourism of
Colombia; and Freddy Ehlers Zurita, Minister of
Tourism of Ecuador
05: Angelica Fuentes, Chief Executive Officer, Grupo
Omnilife-Chivas, Mexico
06: Hilde Schwab, Chairperson and Co-Founder,
Schwab Foundation for Social Entrepreneurship,
Switzerland; and Nadine Heredia Alarcon, First Lady
of the Republic of Peru
01
02
03
04
03
05
03
06
Delivering Growth, Strengthening Societies
21
Building Resilience for Sustainable Development
Shepherding
Nature’s Bounty
and Forging Wider
Societies
Latin America is the most inequitable
and highly urbanized emerging region in
the world. Can it manage its commodityrich industries and natural resources
while reducing income inequality to
make society more inclusive and nations
more viable?
You need stability because
with inflation you won’t have
a middle class.
Luis Miguel Castilla Rubio Minister of Economy
and Finance of Peru
22
World Economic Forum on Latin America
Building Resilience for Sustainable Development
Latin America is home to Earth’s
lung, the Amazon forest, a vast
basin rich in biodiversity and water
resources that extends across nine
South American countries. Latin
America also contains vast mineral
wealth and oil and gas reserves. At
the same time, the region holds the
dubious distinction of being the most
inequitable part of the world, and
is the most highly urbanized of the
emerging regions.
01
The twin challenges of sustainable
development in Latin America,
therefore, are to foster greater
inclusion in the inequitable, urbanized
societies of the region, and to protect
its natural endowments.
Climate change and deforestation
threaten the Amazon ecosystem;
20% of the Amazon has been
deforested and, if current trends are
not reversed, the tipping point for
the Amazon will be reached in 2050
when temperatures are expected to
rise 2.5 ºC above pre-industrial levels.
Latin American governments,
civil society actors and research
institutions are playing an increasingly
active role in shepherding the
global asset which is the Amazon.
Fortunately, strong and effective
actions have been taken to stop
deforestation. In Brazil, for example,
the Sustainable Amazon Foundation
works in more than 500 communities
promoting proper forest and fisheries
management with a single strategy:
to make the forest worth more
06
standing
than cut. But so much more
needs to be done, especially when
faced by unsustainable development.
However, businesses leading
mining, hydroelectric and consumer
goods operations are increasingly
integrating sustainable practices
into their strategies. A leading
power company, for example,
now invests 10% of the total cost
of a hydroelectric plant in social
programmes and environmental
protection.
A mining firm develops
04
Building Resilience to Natural Disasters
With extreme weather events come more exposure and vulnerability, especially
in developing nations with growing urban populations. Some 52% of the world’s
population lives in cities; 82% of Latin America is urbanized.
Many of the people who have moved to cities live in poorly planned and high-risk
areas, such as on hillsides susceptible to landslides, along coastal areas prone
to flooding or in poorly constructed buildings at risk of earthquakes. To better
prepare for a natural disaster, countries urgently need early warning systems. If
early warning systems are developed, then the private sector – such as utilities
and energy generators – can prepare risk management. Currently, they do not
have the data to prepare properly.
But, some countries are taking action. In Brazil, after more than 1,200 people
01
were killed in floods, a scientist was hired to create an early warning system. More
early warning systems are crucial to avoiding and ameliorating damage caused
by natural disasters.
In the hours and days after a disaster, security and safety is paramount. It
is important to evacuate if necessary, and evaluate immediate risks such as
aftershocks and tsunami. It is also important to keep the population calm; clear
and concise communication is vital. After that, businesses and government
must be ready to resume activities. The quicker they do, the easier it is to return
to a sense of normalcy. The private sector can encourage that by adopting a
business-as-usual attitude.
01: Participants in the session on Building Resilience to Natural
Disasters
Delivering Growth, Strengthening Societies
23
Large-scale Amazon dieback could occur
in the next half of this century due to climate
01
change and deforestation
Tipping points for Amazon forest dieback
Source: International Panel for Climate Change (IPCC); National Institute for Space Research (INPE); PwC estimates
Note: Amazon forest dieback refers to climate-induced threats to the area’s ecosystems and biodiversity. Timescale for the temperature
threshold based on IPCC’s middle-case scenario (circa 2090); the IPCC envisions the threshold to be reached circa 2070 in its worstcase scenario and sometime during the next century in its best-case scenario. Timescale for deforestation threshold estimated based
on historic INPE estimates of Brazilian Amazon deforestation rates.
Temperature increase
1°C above pre-industrial level
Present
20% deforestation
Tipping point for Amazon:
temperature increase
2.5°C above pre-industrial level
2050
Tipping point for Amazon:
40% deforestation
its operations in such a way that its
infrastructure – roads, information
technology and electricity networks
– can be accessed by local
communities to increase production
and marketing opportunities.
The commodities boom and growth
have lifted 70 million Latin Americans
out of poverty in the past decade.
New entrants into the middle
class are enjoying higher levels of
consumption than ever before, but
this creates added pressures on
assuring sustainable development.
Maintaining these people in the ranks
of the middle class requires constant,
high levels of growth, as much as
6% per year, said Luis Miguel Castilla
Rubio, Minister of Economy and
Finance of Peru.
Despite the progress of bringing
millions out of poverty, Latin America
faces an enormous challenge to
reduce the deep income inequality
that plagues the region. In many
countries, a majority of the population
lives below the poverty line, and there
are many regions of Latin America
where the standard of living is similar
to levels in African nations, according
to Hernando de Soto, President,
Instituto Libertad y Democracia,
24
World Economic Forum on Latin America
2100
Peru. Latin American societies will
not be viable until those living in
poverty are fully incorporated into
civic and economic life.
How to combine private
sector ingenuity and public
sector scale, this is the
challenge.
Marcelo Côrtes Neri Minister of Strategic
Affairs of Brazil
There are financial mechanisms that
can promote inclusion. In recent
years, conditional cash transfers
designed to support poor families
so they can keep their children in
school and have regular health
check-ups have helped to boost
incomes and upgrade nutrition and
opportunities among the socially
excluded. Transfers are typically given
to mothers as they more reliably
distribute the benefits to the family.
This is a “revolution”, emphasized
Marcelo Côrtes Neri, Minister of
Strategic Affairs of Brazil.
The quality of growth in Latin
America and its potential for fostering
social inclusion, however, remain in
doubt. A lack of jobs is common in
many economies, although a few
countries such as Brazil and Panama
have experienced full employment
in recent years. In Colombia last
year, 80% of economic growth
was attributed to the banking and
minerals sectors, which contribute
very little to generating jobs. There
is a perception that benefits of
growth are not being distributed to all
sectors.
Microfinance institutions, for
example, are well developed in Latin
America. They provide small credits
and other financial products to a
clientele of micro-entrepreneurs and
small businesses, which generate
employment. Governments and
banking institutions are focusing on
making more credit available to small
and medium businesses.
There is a greater chance of
a system collapsing through
social disturbances than through
exhaustion of natural resources, and
this calls for renovation of institutions
and greater human progress. A
warning in this regard is sounded
by the recently released Social
Progress Index. Its findings show that
resource-rich countries, particularly
energy-rich and mining nations,
have the lowest levels of social
programmes.
Building Resilience for Sustainable Development
Tax incentives are seen as a
means of stimulating sustainable
development. In Peru, the
government offers a tax deduction
to companies for their investments
in community services. Designing
tax and financial measures to
promote sustainability requires close
attention. And revenues received by
national governments from extractive
industries must be distributed
efficiently to local governments to
mitigate environmental impacts and01
upgrade services and opportunities in
their communities.
01
A Vision for Peruvian Cuisine
World-renowned chef Gastón Acurio wants his country, Peru, to be known as
more than just about ceviche, quinoa and pisco sours; he wants a gastronomic
revolution that puts Peruvian cuisine on the global culinary map.
For Acurio, the revolution starts at home, by opening up restaurants with locally
and sustainably sourced foods and products and involving local farmers and
fishermen. He wants Peruvians to be proud of their culture and identity through
food and then let the world know about it.
Getting stakeholders together –
government, civil society and the
private sector – will be an essential
first step to reshape development
processes in Latin America.
Achieving a meeting of the minds
will allow all parties to take action to
assure a sound future for the natural
habitat and all groups of citizens in
the region.
Since opening his first restaurant in 1994, Acurio has gone on to oversee an
empire that provides jobs and serves thousands of meals a day. Today, he has
restaurants throughout South America as well as in Europe and the United
States.
One of the fundamental ingredients for elevating Peruvian cuisine, says Acurio, is
through optimism and “creativity with a commitment”. For him, cooking should
be used as a tool to effect change and empower people, especially children
living in poverty through improving school meals. He also actively encourages the
cooperation between chefs, food suppliers and customers.
Acurio was awarded the Global Gastronomy Award 2013 for developing a rich
local gastronomy, which uses traditional ingredients from throughout Peru – the
Pacific Ocean, the Andes and the Amazon – and for his involvement in training
young Peruvians in the art of cooking. “I want the next generation not to just cook
food, but cook stories, the Peruvian story,” says Acurio.
01: Gastón Acurio, Founder and Chef,
Gastón & Astrid Restaurants, Peru
We used to demand a high
risk premium to invest in
Latin America, and decided
there was no country risk in
Europe. Now, to some
extent, the continents have
switched places.
Gérard Mestrallet Chairman and Chief
Executive Officer, GDF SUEZ, France;
Co-Chair of the World Economic Forum on
Latin America
Delivering Growth, Strengthening Societies
25
01
To have a long-term win, we
have to have an economic
victory – to make the forest
more valuable standing than
cut.
02
Virgílio Maurício Viana General Director,
Fundação Amazonas Sustentável, Brazil
03
04
05
26
World Economic Forum on Latin America
01: Carlos Danel, CoChief Executive Officer,
Compartamos, Mexico
02: Alfredo Capote,
Managing Director, Head
of Investment Banking,
Mexico, Citi, Mexico;
Ian Woods, General
Manager, Rio Tinto Minera
Peru, Peru; Roberto
Artavia, President,
VIVA Trust, Costa Rica;
Juan Mario Laserna,
Senator of Colombia;
Jorge Humberto Merino
Tafur, Minister of Energy
and Mining of Peru;
and Gérard Mestrallet,
Chairman and Chief
Executive Officer, GDF
SUEZ, France
03: Alex Fort, Director,
Breca, Peru
04: Oscar Adolfo Naranjo
Trujillo, Director, Instituto
Latinoamericano de
Ciudadanía - ILC, Mexico;
and Rafael Fernández
de Castro, Chair,
International Studies
Department, Autonomous
Technological Institute of
Mexico (ITAM), Mexico
05: Juan Federico
Jiménez Mayor, Prime
Minister of Peru
Building Resilience for Sustainable Development
Most people live, and much of LAC GDP is generated, in net commodity exporting
countries
Share of population and GDP, LAC commodity exporters v importers
Source: Emily Sinnott, John Nash and Augusto de la Torre, ‘Natural resources in Latin America and the Caribbean: Beyond booms
and busts?’, The World Bank (2010)
7
100
3
90
90
80
80
70
70
60
50
60
93
97
50
40
40
30
30
20
13
20
10
15
10
0
Share of LAC
population, 2008
Share of LAC
GDP, 2008
Number
of countries
Number of countries
Share of LAC population/GDP, %
100
Net
commodity
importer
countries
Net
commodity
exporter
countries
Success in Latin America
depends on inclusion.
0
01
Michel M. Liès Group Chief Executive Officer,
03
Swiss Re, Switzerland; Co-Chair of the World
Economic Forum on Latin America
02
05
01: Alicia Barcena Ibarra,
Executive Secretary,
United Nations Economic
Commission for Latin
America and the
Caribbean (ECLAC),
Santiago; Felipe Larraín
Bascuñán, Minister of
Finance of Chile; Michael
R. McAdoo, VicePresident, Strategy and
International Business
Development, Bombardier
06
Aerospace, Canada;
Rafael Roncagliolo,
Minister of Foreign Affairs
of Peru; and Woods
Staton, President and
Chief Executive Officer,
Arcos Dorados, Argentina
02: Mauricio Cárdenas,
Minister of Finance and
Public Credit of Colombia
04
Delivering Growth, Strengthening Societies
27
01: Luis Miguel Castilla
Rubio, Minister of
Economy and Finance
of Peru; Juan Federico
Jiménez Mayor, Prime
Minister of Peru; and
Marisol Argueta de
Barillas, Senior Director,
Head of Latin America,
World Economic Forum
02: Schwab
Foundation for Social
Entrepreneurship
presents the 2013
Latin American Social
Entrepreneurs of the Year
03: Klaus Schwab,
Founder and Executive
Chairman, World
Economic Forum; Ollanta
Moises Humala Tasso,
President of Peru; Ricardo
Martinelli, President of
Panama; and Enrique
Peña Nieto, President of
Mexico
04: Rodrigo Pérez
Mackenna, Minister of
Housing and Urbanism
and Minister of National
Property of Chile
05: Hernando de Soto,
President, Instituto
Libertad y Democracia,
Peru
01
01
02
03
04
28
World Economic Forum on Latin America
05
01
01
01: Alvaro Rodriguez Arregui,
Co-Founder and Managing
Partner, IGNIA Partners, Mexico
02: Felipe Larraín Bascuñán,
Minister of Finance of Chile
03: Adam Blackwell, Secretary
of Multidimensional Security,
Organization of American
States (OAS), Washington DC
04: Anabel González, Minister
of Foreign Trade of Costa Rica;
and Carlos de Vega, Senior
Correspondent, Anchor News
and Talk Show Host of Agenda,
Deutsche Welle, Germany
05: Rossana Fuentes-Berain,
Vice-President, Expansion,
Mexico
06: Religious leaders at the
World Economic Forum on Latin
America
07: Marcelo Côrtes Neri,
Minister of Strategic Affairs of
Brazil
08: Martin Burt, Minister, Chief
of Cabinet to the President of
Paraguay
09: José Graña Miró ,
Chairman, Graña y Montero,
Peru
10: Peter Foyo, President,
Nextel México, Mexico
02
04
03
05
05
03
06
07
08
08
08
09
10
Delivering Growth, Strengthening Societies
29
01
01
01: Hernando de Soto, President,
Instituto Libertad y Democracia,
Peru; Baroness Valerie Amos,
Undersecretary-General for
Humanitarian Affairs and Emergency
Relief Coordinator, United Nations,
New York; Michel M. Liès, Group
Chief Executive Officer, Swiss Re,
Switzerland; Gérard Mestrallet,
Chairman and Chief Executive Officer,
GDF SUEZ, France; Luis A. Moreno,
President, Inter-American Development
Bank, Washington DC; and Carlos
Rodriguez-Pastor, Chairman, Intercorp,
Peru
02: WorkStudio scribing
03: Michael Botticelli, Deputy Director,
National Drug Control Policy, USA
04: Eric Parrado, Professor, University
Adolfo Ibáñez, Chile
05: Arturo Valenzuela, Professor of
Government and Director, Center for
Latin American Studies, Georgetown
University, USA
06: Michael R. McAdoo, Vice-President,
Strategy and International Business
Development, Bombardier Aerospace,
Canada
02
03
03
08
30
04
World Economic Forum on Latin America
05
06
01
01
02
04
03
03
05
05
07
06
06
07
01: Augusto de la Torre, Chief Economist,
Latin America and the Caribbean, World
Bank, Washington DC
02: Hans-Paul Bürkner, Chairman, The
Boston Consulting Group, Germany;
Patricia Menendez-Cambo, Chair, Global
Practice Group, Greenberg Traurig, USA;
Ingo Ploger, President, Brazil, Business
Council of Latin America (CEAL), Brazil;
and Luis Fernando Salcedo Ponce De
León, Chief Operations Officer, Belcorp
International, Peru
03: Roberta S. Jacobson, US Assistant
Secretary of State for Western
Hemisphere Affairs
04: James S. Turley, Chairman and Chief
Executive Officer, Ernst & Young, USA
05: Alexandre Kalache, President,
International Longevity Centre, Brazil; and
Akio Hosono, Director, JICA Research
Institute, Japan
06: Elizabeth Tinoco, Assistant DirectorGeneral and Regional Director, Latin
America and the Caribbean, International
Labour Organization (ILO), Lima
07: Mario Martin Delgado Carrillo,
Senator of Mexico
08: Alicia Barcena Ibarra, Executive
Secretary, United Nations Economic
Commission for Latin America and the
Caribbean (ECLAC), Santiago
09: Woods Staton, President and Chief
Executive Officer, Arcos Dorados,
Argentina
10: Marcos Bulgheroni, Executive ViceChairman and Board Member, Bridas
Corporation, Argentina
08
09
10
Delivering Growth, Strengthening Societies
31
Acknowledgements
The World Economic Forum wishes
to thank the Government of Peru for
the efforts it has put forth to host the
2013 World Economic Forum on Latin
America, which contributes to enriching
current discussions on Latin America’s
agenda.
Regional Partners
The Forum would like to particularly thank
the Presidency of Peru, the Ministry of
Economy and Finance of Peru, and the
Ministry of Foreign Affairs of Peru as
partners in organizing this meeting, and
PromPeru.
Compartamos
Greenberg Traurig
The Inter-American Development Bank
Interproteccion
Nextel Mexico
OHL México
The World Economic Forum wishes to
recognize the support of the following
companies as Partners and Supporters
of the World Economic Forum on Latin
America.
Corporación América
Intercorp
Meeting Supporters
Host Broadcaster
TVPeru
Service Provider
Strategic Partners
Fleishman-Hillard Inc.
04
ABB
The Abraaj Group
Accenture
AUDI AG
Bombardier
The Boston Consulting Group
BT
Cisco
Clifford Chance
Deloitte
The Dow Chemical Company
Ernst & Young
Goldman Sachs
Jones Lang LaSalle
Kudelski Group
ManpowerGroup
Marsh & McLennan Companies (MMC)
Morgan Stanley
Nestlé SA
NYSE Euronext
Old Mutual
PepsiCo
Petroleo Brasileiro SA – Petrobras
Qualcomm
Renault-Nissan Alliance
SABMiller
Siemens
Swiss Re
Takeda Pharmaceutical
Tata Consultancy Services
Thomson Reuters
32
World Economic Forum on Latin America
Other Contributor
Group of Fifty (G50)
05
The World Economic Forum also thanks
PwC for its help in preparing data and
statistics for the 2013 World Economic
Forum on Latin America.
Further Information
Contributors
Marisol Argueta de Barillas, Senior
Director, Head of Latin America
The report was written by Lucy Conger,
Dan Horch and Thierry Ogier. The Forum
would also like to thank the summary
writers for their work at the World
Economic Forum on Latin America:
Andrew Downie and Dorit Sallis.
Editing and Production
Helena Halldén, Senior Editor
Kamal Kimaoui, Director, Head of
Production and Design
Mark Schulman, Editor
The event page of the World Economic Forum on Latin America provides access
to a richer level of content from the meeting, including videos, photographs,
session summaries and webcasts of selected sessions:
http://wef.ch/la13
Photographers
Jakob Polacsek
Benedikt von Loebell
Regional Agenda
World Economic Forum
on Latin America
Delivering Growth,
Strengthening Societies
Lima, Peru 23-25 April 2013
This report is available to download: http://wef.ch/la13report
Delivering Growth, Strengthening Societies
33
Upcoming Meetings
World Economic Forum on Africa
Cape Town, South Africa 8-10 May 2013
Delivering on Africa’s Promise
With an expected annual growth of 5% in 2012-2013, sub-Saharan Africa continues its transformative
journey from a developing continent to a hub of global growth. According to the World Bank, almost
half of Africa’s countries have attained middle-income status. At the same time, the continent’s positive
outlook is threatened by fluctuating commodity prices, rising inequality and youth unemployment. To build
on its achievements, Africa’s leaders need to strengthen the continent’s competitiveness, foster inclusive
growth and build resilience in a volatile global environment. Accelerating economic diversification, boosting
strategic infrastructure and unlocking talent are critical success factors in this new leadership context.
For more information, please visit: http://wef.ch/africa13
World Economic Forum on the Middle East and North Africa
Dead Sea, Jordan 24-26 May 2013
Advancing Conditions for Growth and Resilience
The current Middle East and North Africa context is of fundamental importance for shaping the economic,
social and governance systems of the future. Home to youthful populations, energy endowments and
some of the fastest-growing economies globally, the region as a whole has formidable assets to drive
positive outcomes. Two years after the start of the transitions in North Africa, this promise is compounded
by a clear urgency for decision-makers to deliver development and prosperity throughout the populations.
For more information, please visit: http://wef.ch/mena13
World Economic Forum on East Asia
Nay Pyi Taw, Myanmar 5-7 June 2013
Courageous Transformation for Inclusion and Integration
After a series of bold economic and political reforms in Myanmar, this meeting will be the first leading
international gathering of senior decision-makers from industry, government, academia and civil society to
be held in the country. The meeting will be an unrivalled opportunity to understand and shape Myanmar’s
ongoing reforms and reconciliation process. As Myanmar assumes the chairmanship of ASEAN in 2014,
it will have a critical role in guiding the bloc’s 10 member economies towards the planned economic
integration in 2015. The meeting will provide value not only to participants from the ASEAN region, but
also to those who see in ASEAN an important evolving geopolitical and geo-economic pillar of the global
economy.
For more information, please visit: http://wef.ch/ea13
For a full list of upcoming meetings, please consult the World Economic Forum’s website: www.weforum.org.
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