Alem Tedeneke, Media Manager, World Economic Forum; Tel.: +1 646 204 9191, Email: ated@weforum.org
Medellín, Colombia, 16 June 2016 – Latin America is at a crossroads, as the region faces the twin challenges of lower commodity prices and the Fourth Industrial Revolution. But innovative policies in many countries show that the continent is preparing to return to growth, and to make that growth sustainable and inclusive.
Klaus Schwab, Founder and Executive Chairman, World Economic Forum, told the opening plenary of the 11th World Economic Forum on Latin America in Medellín, Colombia, that the Fourth Industrial Revolution would have consequences and opportunities for the region, particularly in terms of required skills. Speaking through a video connection from Geneva, Schwab praised the region’s many initiatives to prepare for the future, especially in Medellín itself. “Medellín is a role model for the world, based on the integration of its citizens and its future-oriented policies,” he said.
Colombia’s innovative policies led to growth of over 3% last year, despite the plunge in oil revenues. The expectation is that growth will continue at a similar rate this year, making the country one of the fastest growing in the region. Juan Manuel Santos, President of Colombia, said the peace process will help that growth rise further.
“Colombia is transitioning from war to peace. It hasn’t been easy, but this transition is one all Colombians are committed to,” he said.
Santos cited the over 8 million victims the war has created, mostly displaced persons who not only suffer a personal tragedy, but also are unable to contribute as much to the country’s economy as they could when at home. “Parts of Colombia haven’t grown at all for years because of the conflict and the absence of the state. When peace comes, we expect they’ll grow at rates of 8, 10, or even 12%, and help the rest of the country grow faster too.” The civil war’s end should also drive an increase in tourism and investment, he said.
Mauricio Macri, President of Argentina, said his country is now leaving behind populist policies to invest in the future. “We are opening to the world,” he said, adding that Argentina expects to soon announce new foreign investments that would bring the country’s total to more than $20 billion for the year.
To attract this investment, Argentina is lowering trade barriers and striving to create clear rules, and credible and reliable institutions that inspire trust. The country is also seeking to be better integrated with the region and the world. “Integration is the path to creating a better quality of life in all our countries,” Macri said.
The benefits of Argentina’s greater openness are already evident: agricultural output is surging, and a recent auction of rights for thermal power generation attracted seven times more bids than expected.
Santos also agreed on the need for openness to foreign investment. “We are fervent believers in the need to receive foreign investment. Right now we have the highest foreign investment in our history. We want to maintain it and increase it.”
Both presidents also emphasized the importance of education for achieving sustainable growth and taking advantage of the Fourth Industrial Revolution.
“Education is the most important factor for social mobility in any society,” Santos said. Colombia has already brought broadband to all its municipalities and it now working to connect every school in the country.
“The fundamental pillar to overcome poverty is employment, which is based on education,” Macri said. “We have to invest heavily in education and be bold, not fearful of innovation.”
Macri closed the opening plenary by inviting participants to join him in Buenos Aires in 2017, when Argentina will host the 12th World Economic Forum on Latin America.
More than 550 participants are taking part in the 11th World Economic Forum on Latin America in Medellín, Colombia from 16 to 17 June 2016. The theme of the meeting is “Reigniting Latin America’s Inclusive Growth”.
The Co-Chairs of the World Economic on Latin America are: Carlos Julio Ardila, Chief Executive Officer, Organización Ardila Lülle, Colombia; Ilene S. Gordon, President and Chief Executive Officer, Ingredion Incorporated, USA; Francesco Starace, Chief Executive Officer and General Manager, Enel SpA, Italy; Brian Gallagher, President and Chief Executive Officer, United Way Worldwide, USA; and Carlos Salazar Lomelin, Chief Executive Officer, FEMSA, Mexico.
Notes to Editors
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