Latin America’s problem is low productivity
CAF's executive president believes Latin America must improve its productivity levels in order to compete with the world’s major economies, and to do so, it needs to attract more foreign investment and improve infrastructure efficiency.
During the Empresas Multilatinas meeting, held at the Menéndez Pelayo International University (UIMP), in Santander, Spain, the executive president of CAF—development bank of Latin America—Luis Carranza claimed that achieving a more prosperous, inclusive and competitive Latin America requires increasing productivity rates.
Carranza has made it clear that “whether we like it or not, the prevailing reality is that, by critical mass, we will have China as a dominant player in the upcoming years,” and zeroed in Latin America’s problem: low productivity. “Regardless of its causes—infrastructure, lack of adequacy and inequality, among others—the main feature of Latin America is low productivity. Compared to different regions, we've been lagging behind since the 1950s,” said Carranza.
According to CAF executive president, the region needs a political pact for productivity, in which some fundamental pillars have already been set in areas such as infrastructure and foreign investment, and creation of a favorable business climate.
The opening session of the 6th Empresas Multilatinas Meeting featured Josep Piqué, president of the Ibero-American Business Foundation (FIE) and former Minister of Industry; José Carlos García de Quevedo, president of ICO; Rebeca Grynspan, Secretary General of the Ibero-American General Secretariat, María Luz Morán, rector of UIMP, and Gema Igual, Mayor of Santander. The meeting will be held until Friday, July 19.
The 6th Empresas Multilatinas Meeting has been organized by the Ibero-American Business Foundation (FIE), the Ibero-American General Secretariat (SEGIB) and the State Secretariat for International and Ibero-American Cooperation (SECIPI).
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