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A contribution of the Inter-American Competitiveness Network (RIAC)

OAS Cataloging-in-Publication Data


Signs of competitiveness in the Americas, 2013 : A contribution of the Inter-American Competitiveness Network (RIAC) to the Region / Executive Secretariat for Integral Development. v. ; cm. (OAS official records ; OEA/Ser.D) ISBN 978-0-8270-6060-9 1. Competition--America. 2. Competition, International. 3. America--Commerce. 4. America-Economic policy. 5. Industrial productivity--America. I. Organization of American States. Executive Secretariat for Integral Development. Department of Economic and Social Development. Competitiveness, Innovation and Technology Section. II. Inter-American Competitiveness Network. III. Second Signs of competitiveness in the Americas report - 2013. IV. Ten General Competitiveness Principles. V. Series. OAS official records ; OEA/Ser.D. OEA/Ser.D/XXVI.8 2013 Reproduction of part or all of this work without permission may be a violation of applicable laws. The Executive Secretariat for Integral Development, in its capacity as Technical Secretariat of the RIAC, supports the dissemination of its work and will normally grant permission to reproduce. For permission to photocopy or reprint any part of this work, please send a written request with complete information to: Section on Competitiveness, Innovation and Technology, Department of Economic and Social Development, Executive Secretariat for Integral Development 1889 F Street, N.W., Washington, DC 20006, USA , Fax: 202-458-3561 www.oas.org/sedi secretaria@riacnet.org The complete report is available at www.riacreport.org/2013 This publication was designed by Juan Sebastin Fonseca De la Espriella. The individual documents, photographs and links to websites which were provided as inputs for this Report are property of each partner institution and member of RIAC.

Message from the RIAC Chair Pro Tempore - 2013

Kristelle Getzler

As the 2013 Chair Pro Tempore of the Inter-American Competitiveness Network (RIAC), I would like to recognize the tremendous work carried out by the 34 countries and 10 support institutions which participate in the Network. The technical inputs and more than sixty experiences presented in this Second Signs of Competitiveness in the Americas Report are a testament of the level of commitment and efforts that each RIAC member has undertaken to strengthen our regions productivity. All our countries have made great strides to implement programs and projects under the framework of the 10 General Competitiveness Principles of the Consensus of Santo Domingo in order to develop the necessary competitive advantages to confront the challenges we face as a region. During 2013, and with the support of the OAS as RIAC Technical Secretariat, we have facilitated the exchange of best practices and cooperation between countries, expanded knowledge and exchanged lessons learned, consolidated spaces for specialized collaboration- such as the Group of Experts on Subnational Competitiveness, national forums, technical missions, dialogue sessions, as well as through the use of channels and tools in electronic media, including the electronic version of the Signs of Competitiveness Report www.riacreport.org-, virtual information meetings and the renovated RIAC web portal www.riacnet.org-, among other things. Competitiveness is a countrys capacity to reach high levels of sustained GDP growth per capita, which translates into greater prosperity for its population. We believe that RIAC encourages member states to share best practices and serve as models for others, making progress working together. We encourage all of you to continue strengthening this platform of collaboration and collective learning as a regional public good. With great satisfaction, there is nothing left for me to do but to thank you for the opportunity to serve as the Chair, finding the synergies which are the key to building a more innovative and competitive region. We are certain that Trinidad and Tobago will provide us with excellent leadership next year and we are committed to continue our collaboration in this important initiative.

KRISTELLE GETZLER Executive Secretary Secretariat for Economic Affairs and Competitiveness Ministry of the Presidency of the Republic of Panama RIAC Chair Pro Tempore - 2013

Message from the RIAC Technical Secretariat

Jos Miguel Insulza

In a region that aspires to continue on the path of economic and social progress for its citizens, there is an abundance of knowledge and experiences that countries can share to collectively boost and enrich their efforts. The Signs of Competitiveness in the Americas Report contributes, in its second edition, to present a regional vision of the landscape of infrastructure and its challenges towards the future, in addition to collecting more than sixty initiatives aimed at creating more innovative, competitive and prosperous States, in the framework of the ten General Competitiveness Principles of the Americas. The wealth of this Report is not as a compilation of case profiles between two covers but rather in the transformative power of an instrument that can be used through joint hard work to achieve the cooperation proposals and requests included in the experiences of this Report. No matter the size of the economy, all our countries have lessons to share and space to learn and improve. As RIAC Technical Secretariat, I express our great commitment to continue to support the exchange of knowledge and experiences among countries. I am convinced that if we move forward together we can participate under improved conditions in a global economy that is ever more competitive, and we will be better equipped to face future challenges. My most sincere congratulations to the Republic of Panama for its leadership this year as Chair Pro Tempore of the RIAC and for making possible the preparation of this Second Report on the Signs of Competitiveness in the Americas 2013 with the collaboration of OAS Member States and the institutions that support the work of the RIAC (Development Bank of Latin America, CAF; Economic Commission for Latin America and the Caribbean, ECLAC; Inter-American Development Bank, IDB; Central American Bank for Economic Integration, CABEI; Compete Caribbean Program; Global Federation of Competitiveness Councils (GFCC), TEC de Monterrey, and CIFAL Atlanta). And special appreciation also to Canadas Department of Foreign Affairs, Trade and Development for supporting the ongoing work of the RIAC.

Jos Miguel Insulza Secretary General Organization of American States

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EXECUTIVE SUMMARY LANDSCAPE OF INFRASTRUCTURE IN THE AMERICAS

-Economic Commission for Latin America and the Caribbean (ECLAC) -Tecnolgico de Monterrey, Mexico -Interview with Robert Puentes, Brookings Institution -Interview with Chelsea White, National Chair of Transportation -Barbara Kotschwar, Peterson Institute for International Economics (PIIE) -Interview with Manuel E. Bentez, Panama Canal Authority -National Innovation Council for Competitiveness (CNIC), Chile -Interview with Jamil Salmi, Expert on Higher Education -Interview with President Arturo Condo, INCAE Business School, Costa Rica -Orkestra- Basque Institute of Competitiveness and Deusto Business School -Strategy of the Central American Bank for Economic Integration (CABEI)
and Logistics at Georgia Tech, Atlanta, United States

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EXPERIENCES PRESENTED BY THE RIAC MEMBER STATES


Progress in the 10 General Competitiveness Principles

-Inclusion of Urban Transport through Aerial Cable - Colombia -Industrial Infrastructure in the City of Rochelle, Illinois - United States -Development of a Modern, Efficient, and Well-Maintained Infrastructure - Grenada -Expansion of the Panama Canal - Panama -Construction of the Metro in Panama - Panama -Urban renovation, Curund Project - Panama -Developing Infrastructure in Deprived Communities in East Port of Spain - Trinidad and Tobago -Infrastructure Development in the Western Peninsula - Trinidad and Tobago -Tourism Benchmarking and Competitiveness Strategy - St. Lucia -Port Logistics Center, Caucedo - Dominican Republic -Georgia Tech Logistics Innovation and Research Center - Panama -Direct Domestic Optical Fiber - Uruguay -National Competitiveness Council - Jamaica -Creation of the Council for National Competitiveness and Productivity - St. Lucia -Strengthening National Metrology Institutes in the Hemisphere - United States -Bicycle Sharing: An Option for Urban Mobility - United States

50 - INFRASTRUCTURE

-Comprehensive Support for Entrepreneurship - Guatemala -National Institute for Entrepreneurship - Mexico -Start-Up Chile - Chile -Enterprise Development Center to Support MSMEs - Trinidad and Tobago -Driving the National Innovation and Competitiveness Agenda through the Idea 2 Innovation (i2i) Program - Trinidad and Tobago -BioGenerator - Comprehensive System for Bioscience Enterprise Creation in St. Louis - United States -Rutgers Food Innovation Center - United States -Manufacturing Solutions Center, North Carolina - United States -Center for Entrepreneurship and Technology Incubator, Northern Arizona - United States -Clemson University International Center for Automotive Research - United States -Science and Technology Program - Peru -Development Center for Micro and Small Enterprises - El Salvador -CrecES MIPYMES - El Salvador -Ms PYMES - Dominican Republic -Fund for Small and Medium-Sized Enterprises - Suriname -Business Ethics in Export Sectors Relevant to APEC SMEs - United States -Telesur Multimedia Innovation Lab - Suriname

59 - SMEs, INNOVATION, AND ENTREPRENEURSHIP

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69 - DEVELOPMENT OF HUMAN CAPITAL


-International Creativity Park - Colombia -Supporting Inclusive Businesses in Value Chain Competitiveness - United States -Education Enhancement through Information Technology - St. Lucia -Basic Education Enhancement Project - St. Lucia -Skills for Inclusive Growth Project - St. Lucia -Infoplazas- Panama

73 - REGULATORY FRAMEWORK, BUSINESS CLIMATE, AND TRADE


-Business and Investment Climate - El Salvador -Support for Regulatory Improvement Projects - Mexico -Fund of Funds - Mexico -MiEmpresa: Online Services and Transactions - El Salvador -Rapid Business Openings Portal - Mexico -One-stop Window for Construction Projects - Guatemala -Support Platform for Exports, PAEX - Bolivia -Exportar Ms - El Salvador -Western Hemisphere Border Management Reform - United States -Single Registry for Secured Transactions RUG - Mexico -Development of a National Competitiveness Strategy - Honduras -Competitiveness Agenda 2012-2013 - Peru -Second Congress of the Dominican Industry - Dominican Republic -Microcredit Program - Suriname

-Energy for Sustainable Development - Belize -Development of Renewable Energy, Energy Efficiency, and Electricity - Suriname

81 - ENERGY

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EXPERIENCES PRESENTED BY INSTITUTIONS AND PROGRAMS

-Contribution of the Inter-American Committee on Ports (CIP / OAS) Port Expansion Plan - Colombia Logistics Model for the Port of Valparaso - Chile Port Security and Development - Haiti Monitoring System for Quality Brands - Mexico Inclusion of Women in Ports-Related Work - Peru Biological Monitoring Project in Four Pilot Ports - Venezuela -Radical Innovation Summit, OAS-ARTCA Project -Pan-American Advanced Studies Institute (PASI), OAS-ARTCA Project -Compete Caribbean Program -CAF Sustainable Cities Program -Mesoamerica Project - LAC Flavors Event -Juventud Emprendedora Queretaro, Mexico -Center for Economic Development Innovation Inspired by Technology, Puerto Rico

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MESSAGE FROM TRINIDAD AND TOBAGO


RIAC Chair Pro Tempore 2014

ACKNOWLEDGMENTS

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A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG/2013

EXECUTIVE SUMMARY
The second edition of the Signs of Competitiveness in the Americas (SCA) report is a product of the collaboration between Authorities and Councils on Competitiveness of the Americas and the institutions that support the work of the Inter-American Competitiveness Network (RIAC). It is comprised of two main sections, one which offers a panorama of infrastructure, the challenges and opportunities we face as a region; and a second, which includes more than sixty experiences of countries and institutions related to the ten general principles of competitiveness. The Competitiveness Decalogue forms part of the Consensus of Santo Domingo approved by representatives from thirty countries in October 2011 during the Annual Meeting of the RIAC. The Meeting took place within the framework of the V Americas Competitiveness Forum (ACF) in the Dominican Republic and adopted the Consensus and its principles as a central element to the 2020 vision for the Americas. The Secretariat for Economic Affairs and Competitiveness in the Ministry of the Presidency of the Republic of Panama, as Chair Pro Tempore of the RIAC and host of the VII ACF, chose the theme of infrastructure as a priority for 2013. Therefore, the institutions that support the work of the RIAC as well as other collaborators have prepared special contributions for the report, the majority of which focuses on the central theme of VII Americas Competitiveness Forum: Infrastructure and Technology: Shaping the Countries of Today. The multilateral and academic institutions that contributed technical documents and experiences for the report are the Economic Commission for Latin America and the Caribbean ECLAC, Tec de Monterrey, the Central American Bank for Economic Integration CABEI, the Development Bank of Latin America CAF, and the Compete Caribbean Program. The National Council of Innovation for Competitiveness (CNIC) of Chile and Orkestra Basque Institute of Competitiveness Deusto Business School, as well as Barbara Kotschwar from the Peterson Institute for International Economics (PIIE), also produced documents on infrastructure. Some of the speakers of the Americas Competitiveness Forum in Panama shared their expertise through interviews for this section. They are the international specialist in Higher Education, Jamil Salmi; the Director of the Metropolitan Policy Program at the Brookings Institution, Robert Puentes; the President of INCAE Business School in Costa Rica, Arturo Condo; the Schneider National Chair in Transportation and Logistics at George Tech in Atlanta, Chelsea White; and the Sub-Administrator of the Panama Canal, Manuel Benitez. The contribution of the Economic Commission on Latin America and the Caribbean (ECLAC) demonstrates that investment in infrastructure projects contributes and increases coverage and quality of public services, access to markets for goods and inputs, and welfare in general. Therefore, the development of infrastructure constitutes a central element of the economic system of a country. ECLAC confirms that the reduction in infrastructure investment in the region has caused a growing deficit of infrastructure and related services, and with the exception of telecommunications, the provision of services is below that of developed countries and other emerging economies. The result of this delay becomes a reduction in productivity of economic agents and of competitiveness of industries and economies in the region. Amongst the main challenges for Latin America and the Caribbean is the lack of comprehensiveness in addressing policies regarding infrastructure and services, institutional and regulatory barriers , lack of sustainability criteria, and limitations on access to finance, as well as the lack of effective public-private partnerships.

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SIGNS OF COMPETITIVENESS IN THE AMERICAS REPORT - 2013

Tec de Monterrey indicates that the development and competitiveness of Latin American economies cannot have a solid and sustainable basis for the long-term if there is no viable infrastructure that is functional and sustainable. It is argued that the true sense of infrastructure should be centered on its function. Infrastructure in this context is key, not only for economic growth but also for its impact in overcoming poverty and inequality. As part of the strategies to address the needs in infrastructure, the Tec de Monterrey recommends also investing in soft infrastructure, i.e. institutional development and human capital, as an integral part of infrastructure programs to advance hand in hand with investment in big projects. The National Council of Innovation for Competitiveness (CNIC) of Chile highlights that those technological systems we know as infrastructure are the structures over which the collective lives of people are organized. As technologies evolve they generate possibilities for growth and opportunities for some players while producing loss of power and obsolescence for others. This reflection from the CNIC tells us that any current infrastructure project has to come with a greater degree of consciousness over its impact and resulting technologies in peoples lives. Hence the importance of, beyond resolving technical problems, taking charge of human concerns, the implications of coexistence, for the environment and the changes it is undergoing. Amongst the considerations from the CNIC are proposals for fundamental change in policy, in the way we understand and develop technology, in the type of education for engineers. The end goal should consider new forms of learning and generate development from schemes more closely linked to the concerns and values of communities. Barbara Kotschwar from the Peterson Institute for International Economics (PIIE) provides a comparative view between the conditions of infrastructure development in Latin America and the Caribbean and some Asian countries, and provides evidence on the impact that costs and deficiencies in infrastructure represent in terms of trade for regional partners. She discusses three important roles for infrastructure: as a platform for development, as a factor in the promotion of trade, and finally as enhancing competitiveness, especially for MSMEs. Among the findings she indicates that inadequate infrastructure is a barrier to trade, growth and competitiveness. ORKESTRA Basque Institute on Competitiveness talks about knowledge infrastructure, characterizing innovation as a social process. The paper focuses on two key elements: the production and dissemination of knowledge, and on education, skills generation, and training. On the role of universities in the innovation process, they indicate that in addition to education and research, its third mission - transmission of knowledge - has evolved to include technology transfer activities, creation of new businesses, and management of intellectual property and knowledge. They recommend that universities in emerging countries have a differentiated strategy, with a basis on profiles adjusted to the economic and business structures of their country or of the region. Amongst the new type of research institutions that have recently been created, you find more flexible organizations with interdisciplinary specialties centered on the goal of resolving concrete problems and less concerned about the advancement of knowledge in itself. Knowledge infrastructure is a key component to all innovation systems. The editorial section of the report also features interviews with distinguished experts in infrastructure, education and logistics, who contributed their ideas to the VII Americas Competitiveness Forum. Jamil Salmi emphasizes that there exists no world-class universities in Latin America or the Caribbean, no excellence in teaching, no research and scientific production. He identifies the governance of public universities as one of the great challenges and recommends focusing on talent creation and the transformation of teaching and learning methods to improve quality. The Director of the Metropolitan Policy Program at the Brookings Institution, Robert Puentes reflects on the importance of infrastructure development to support economic growth and prosperity. He explains the concept of global fluency of metropolitan areas and provides recommendations on how to promote competitiveness through urban planning. The Schneider National Chair in Transportation and Logistics at George Tech in Atlanta, Chelsea White analyzes the evolution of value chains and the position of countries in the Americas amongst the world in terms of logistics and competitiveness. He also discusses the importance of attracting and retaining creative talent as an economic development strategy. The President of INCAE Business School in Costa Rica, Arturo Condo, points out that the three main weaknesses of education in Latin America and the Caribbean are quality , quality and quality in three dimensions . He offers proposals on

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A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG/2013

how to experiment with new forms of governance in schools through greater localization of management and the involvement of parents and communities. He also offers some thoughts and ideas as to why entrepreneurs are not seen as role models or heroes in the social and professional mind frame of the countries of the region. The Deputy Administrator of the Panama Canal, Manuel E. Bentez comments on the impact the expansion of the Panama Canal will have on international trade and logistics. He also shares some lessons that Panama has accumulated as part of the learning and experience that has been generated with the Panama Canal expansion project. Other institutions of the RIAC contributed their programs and practices which are included in the second section of this report, after the profiles of experiences of countries. CAF, Development Bank of Latin America shares with us an update on its Competitive Cities Program in Cuenca, Ecuador, Fortaleza in Brazil, and in Barranquilla, Colombia, cities which have achieved, based on productive development strategies and publicprivate partnership, substantive progress in innovation and entrepreneurship. The Compete Caribbean Program describes the latest developments of their experiences in the design of a donor coordination effort to address competitiveness priorities in the Caribbean and the important results achieved so far. The Mesoamerica Project contributes an initiative with support from the Inter-American Development Bank (IDB) called LAC Flavors, which is involved primarily in the promotion of trade in the food sector for SMEs in the Mesoamerican region. The Inter-American Committee on Ports presents a group of initiatives and experiences in six countries in the region focused about the promotion of port competitiveness. The OAS-ARTCA Project shares collaborative efforts in science and technology to promote education and collaborative innovation in the Americas. The section on Experiences in the Americas of this report provides an overview of the initiatives developed by eighteen countries: Belize, Bolivia, Chile, Colombia, Dominican Republic, El Salvador, Grenada, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru, Suriname, St. Lucia, Trinidad and Tobago, United States and Uruguay. The experiences that are included in this section refer to the 10 General Competitiveness Principles and in particular to the central theme of VII Americas Competitiveness Forum; principle number five regarding the development of infrastructure - across and within countries - modern and efficient. The experiences presented by countries are grouped into five subsections: (i) Infrastructure; (ii) SMEs, Innovation, and Entrepreneurship; (iii) Development of Human Capital; (iv) Regulatory Framework, Business Climate, and Trade; (v) Energy. In general, the content in the summary of each experience refers to its primary objective, relevance, results and highlights specific opportunities that exist for collaboration with other members of the RIAC. In every experience we indicate what each institution can offer (i.e. information sharing, technical assistance, or experts), and what would be desirable to receive from other countries (i.e. knowledge about similar experiences and successful methodologies that add / or supplement to components of the program, etc.). This process seeks to increase the impact of projects in each country and to provide feedback on the work and mechanisms needed to ensure the success of regional cooperation initiatives. The original text of the experiences reported by countries and institutions is available in the full version of the Signs of Competitiveness in the Americas report - www.riacreport.org/2013 -.

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SIGNS OF COMPETITIVENESS IN THE AMERICAS REPORT - 2013

LANDSCAPE OF INFRASTRUCTURE IN THE AMERICAS

DIAGNOSIS AND CHALLENGES OF INFRASTRUCTURE AND TRANSPORTATION IN LATIN AMERICA AND THE CARIBBEAN

ECONOMIC COMMISSION FOR LATIN AMERICA AND THE CARIBBEAN Prepared by the Infrastructure Services Unit ISU/NRID/ECLAC
The adequate availability of infrastructure, as well as the efficient provision of related services, represents one of the most important aspects of development policies. By virtue of demand for greater competitiveness in international markets and economic and social development, via an increase in the productivity of economic agents, countries need to expand and modernize their infrastructure in accordance with international technological standards. This also includes achieving adequate levels of coverage in every territory and effectively satisfying needs related to the provision of infrastructure services at the national as well as regional levels. By reducing costs associated with mobility, investments in infrastructure projects contribute toward increasing coverage and quality of public services (for example, healthcare, lifetime education, recreation), thereby improving access to goods markets and consumables provided to the population, creating an ideal environment for increasing general welfare. Services in networks of energy, transportation, telecommunications, and potable water and sanitation infrastructure constitute a linchpin of the economic structure of territories and their markets. They are concrete mechanisms for coupling national economies with the rest of the world, making the transportation of cargo and passengers possible, as well as transactions within a specific geographic and economic space. In this way, the development of adequate and efficient infrastructure constitutes a central element for the integration of a countrys and a group of countries economic and territorial system, increasing collaboration and interaction between different markets, businesses, and institutions, and generating economies of scale as well as economies of agglomeration, which translate into greater productivity of the factors of production. This is related to the advantages of specialization that a country can obtain in the segmentation of the productive process, in accordance with the new parameters of economic organization the process of globalization has disseminated internationally. Alongside this, infrastructure allows a country to alleviate a possible deficit in the supply of certain natural resources, it facilitates the development of new comparative advantages (generating new activities), and it grants greater dynamism to tourism. The presence of problems in the provision of infrastructure services in Latin America and the Caribbean generates a large field of action to improve implementation and maximize the positive effects previously noted.

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SIGNS OF COMPETITIVENESS IN THE AMERICAS REPORT - 2013

I. The stress of economic infrastructure in Latin America Economic infrastructure in Latin America has been exposed to high levels of stress in the last decades, especially due to the volatility and decline of investments directed toward the sector amidst continued growth in their demand. A decrease in infrastructure investments has caused two types of effects: a) An increasing lag in the supply of infrastructure and related services involving not only developed countries but also other developing economies, which in the early 1970s exhibited levels of service provision below the average of Latin American countries. b) With the sole exception of telecommunications, service provision has been deficient compared to that observed in other emerging economies. Total investments in infrastructure in Latin America decreased from an annual average of 3.5% of GDP, in the 1980s to an average of 2.2% of GDP in the 2000s. As a consequence, infrastructure in general, in particular transport infrastructure, presents important deficiencies. One of the reasons explaining this lag is that the total investment in transportation in the region was cut by half during the last two decades and GDP represented less than two thirds of its level in the mid-80s, unlike that of Asian countries, which during this period increased their investment in infrastructure. See graph 1.

GRAPH 1 LARGEST ECONOMIES OF LATIN AMERICA: INVESTMENT IN INFRASTRUCTURE, 1980-2010 (As a percentage of GDP)

Source: ISU/NRID/ECLAC based on data by Perrotti and Snchez, 2011.

According to the ISU/NRID/ECLAC, the region needs an average annual expenditure of 6.2% of its GDP to reach required infrastructure investment flows and satisfy the final needs of businesses and consumers during the period 2012-2020. That is, if the region continues to invest 2.2% of GDP, there will be an undefined gap of 4%. This delay in the availability of infrastructure (and the efficient provision of services) has reduced the productivity of economic agents, the competitiveness of industries, and of the regions economies, translating into important limitations in advances toward economic development. Also, the inadequate development of transport infrastructure, upon interfering with the physical integration of territories and markets, has weakened the diverse initiatives undertaken for the purpose of regional integration, which often lack institutional support for implementation. An important part of the problem is the result of policies applied at the end of the 1980s when public investment in infrastructure took on a passive role, which meant, in most cases, public investment was visibly reduced and

1 Based on an update by Perrotti, Daniel and Ricardo J. Snchez (2011), La brecha de infraestructura en Amrica Latina y el Caribe, Serie Recursos Naturales e Infraestructura, N 154, ECLAC, Santiago de Chile.

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A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG/2013

responsibility for the development of the sector was awarded to private parties who focused on the most profitable segments of the activity and were far from contributing financial resources demanded by the countries and development needs. The weakening of the public sector meant not only a decrease in public investment but also represented the States mitigated use of instruments and tools for strategic planning. In the last decade, the situation seems to be turning around since the issue of infrastructure and the efficient provision of related services has become of great relevance in the discussion of development policies, in development agendas, and in cooperation on regional integration. II. Coverage and quality of infrastructure services Beginning in the mid-80s, coverage and quality of services related to the availability of physical infrastructure and telecommunications networks improved in most countries of Latin America. The expansion was stunning, for example, in the cellular phone and Internet market, reaching one of the highest development indexes at the global level. Coverage of electrical, water and sanitation services also grew, and diverse port reforms were implemented whose concessions made way for an important modernization of the principal ports of the region (see box 1). Nevertheless, the roads sector, despite improvements in the provision of trunk highways, did not experience major changes, while the railway sector has deteriorated; the lag in these areas continues to be a factor of great concern.

Road transportation infrastructure has become a complex scenario characterized by difficulties related to a growing demand for transportation infrastructure and a stalled supply, and to the appearance of numerous bottlenecks, among which stand out: lack of ground interconnections in the main corridors; insufficient ground transportation from the main production centers to markets of transformation, consumer markets and export markets; physical limitations in the capacity of bridges; access problems to the main cities; and physical and organizational deficiencies at border crossings. Also, the sectors development faces problems related to what has been called cream skimming, a term that alludes to the concentration of private investment in the most profitable segments of the network and mainly in activities and improvements of the existing network, which has repercussions for the slow growth in the sectors capacity. Furthermore, there are problems of delinquency and violence against the security of persons, equipment and goods (highway piracy), high levels of accidents, problems of funding, and almost no operational capacity for the preservation of tertiary roads, which are stressed by diverse 2 irregular practices.

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2 Snchez, Ricardo J. y Gordon Wilmsmeier (2005), Transportation Services Infrastructure in Latin America: Recent Experience and Problems, Natural Resources and Infrastructure Series, No. 94, ECLAC, Santiago de Chile.

SIGNS OF COMPETITIVENESS IN THE AMERICAS REPORT - 2013

Box 1: Technological performance of container terminals in Latin America


An analysis of performance, out of a sample of 16 container terminals, in nine countries of Latin America and the Caribbean for the period 2005 2011, shows that a majority of terminals has increased their productivity during this period due to an improvement in their technological efficiency and efficiency of economies of scale. The increases in technological efficiency have their origin in port reforms that facilitated the implementation of technological advances, especially in port superstructure and important management changes. Figure 1 Evolution of productivity and efficiency in container terminals of ALC 2005-2011

Malmquist Productivity Index and breakdown


2005/2006

Changes in technological efficiency and breakdown


2005/2006

E ch

Tfpch 1.20 Techch

2006/2007
1.20

Sech

E ch

2006/2007

Pech

1
0.90 0.80 0.70

1
0.90 0.80 0.70

2010/2011

2007/2008

2010/2011

2007/2008

2009/2010

2008/2009

2009/2010

2008/2009

Source: Wilmsmeier, Tovar and Snchez (2013).

The change in total productivity of factors measured through the Malmquist Index (tfpch) was observed to correspond on average to some 3% of the increase in total productivity of the factors in the period of seven years. The growth of the tfpch arises as a consequence of two movements: an improvement in technical efficiency (effch) of 4.5%, as well as a reduction in the effects of technological change (techch) of some 1.4% (border offset). An improvement in effch is, in turn, the result of two movements, on the one hand an improvement in efficiency of scale (sech) of 3.8% (businesses have been approaching their minimum efficient scale) and an improvement of pure technical efficiency (pech) (management) of 0.6%. Nevertheless, changes in performance also reveal important differences between the different terminals under study, strictly related to the different levels of investment in infrastructure and management, and with the location and role of every terminal within the regions port system.

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Similarly, on matters of port infrastructure and services, it is relevant to highlight the following: i) the region shows a contrast between the continued growth of traffic supported by increases in asset productivity and scarce growth or improvements in sea access infrastructure, logistics, and inland connectivity; and ii) the main ports in Latin America and the Caribbean present, in general terms, an adaptation to the evolution of economic activity in recent years, though a certain slowness in the completion of necessary reforms has been observed with concern to make its development sustainable toward the future. In comparison, the inland connectivity of countries presents setbacks and failures in organization that increase overall logistics costs and pose an obstacle to improving competitiveness and the productivity of regional economies. The insufficient development of transportation infrastructure is translated into elevated logistics and transportation costs. Various studies have conducted the exercise of estimating these costs. On one hand, the World Bank and the Inter-American 3 Development Bank (2009) estimate that the logistics costs in countries of Latin America are between 16% and 25%, which contrasts negatively with the average of 9% registered in OECD countries. Both organizations recognize these costs are greater than traditional trade barriers (for example, tariffs), which erode the competitiveness of Latin American producers and increase the cost of access to imported goods. Thus, for example, it is noted that ad valorem tariffs in the area of foodstuffs oscillate between 3% and 12%, but when the product reaches the end consumer, the logistics component. The problems that affect road infrastructure are not the only ones present in transportation infrastructure. It is possible to identify other problems such as: regulatory restrictions in all modes of transportation and intermodal transport, connectivity problems, deficiencies and missing links in railway networks, inability of the railway network to support the weight of trains employed

in full capacity, or to operate trains of greater size or greater speed; insufficient ground access in the main ports of the region, combined with inadequate depth and shortage of yards.4 Similarly, on matters of port infrastructure and services, it is relevant to highlight the following: i) the region shows a contrast between the continued growth of traffic supported by increases in asset productivity and scarce growth or improvements in sea access infrastructure, logistics, and inland connectivity; and ii) the main ports in Latin America and the Caribbean present, in general terms, an adaptation to the evolution of economic activity in recent years, though a certain slowness in the completion of necessary reforms has been observed with concern to make its development sustainable toward the future. In comparison, the inland connectivity of countries presents setbacks and failures in organization that increase overall logistics costs and pose an obstacle to improving competitiveness and the productivity of regional economies. The insufficient development of transportation infrastructure is translated into elevated logistics and transportation costs. Various studies have conducted the exercise of estimating these costs. On the one hand the World Bank and the Inter5 American Development Bank (2009) estimate that the logistics costs in countries of Latin America are between 16% and 25%, which contrasts negatively with the average of 9% registered in OECD countries. Both organizations have highlighted that these costs have reached a greater weight than traditional trade barriers (for example, tariffs), eroding the competitiveness of Latin American producers and increasing the cost of access to imported goods. Thus, for example, it is noted that ad valorem tariffs in the area of foodstuffs oscillate between 3% and 12%, but when the product reaches the end consumer, the logistics component sometimes surpasses 50% of the final price. The economic agents most affected by elevated logistics costs are small businesses (those

3 World Bank and Inter-American Development Bank (2009), A Renewed Agenda for Regional Cooperation: Infrastructure, Energy Efficiency and Integration, Policy Note, Second Meeting of Finance Ministers, July 3, 2009, Via del Mar, Chile. 4 Op. cit. 5 World Bank and Inter-American Development Bank (2009), A Renewed Agenda for Regional Cooperation: Infrastructure, Energy Efficiency and Integration, Policy Note, Second Meeting of Finance Ministers, July 3, 2009, Via del Mar, Chile.

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that stand out for their importance to job creation), representing 48% of the total value of their sales. On the other hand, according to Gonzlez, Guasch 6 and Serebrisky (2008) the logistics costs in Latin America vary between 18% and 32% of the value of the product while in the United States it is around 9.5% and in Singapore 8.5%. Finally, a more recent study (Martinez Rivas, 2010), estimates logistics costs between 10 and 15% of the final product; nevertheless, the author calculates that in the case of developing countries this figure may exceed 20%. Development of transportation and trade is not always held back by inadequate infrastructure; some analyses of the obstacles to international overland transportation of freight within MERCOSUR have concluded that the relative weight of institutional problems was greater than that caused by the physical infrastructure shortcomings. Among these institutional problems are red tape, delays and uncertainty over international clearance, the lack of continuity in public organizations and public servants, multiple and overlapping national standards, non-compliance with sub-regional regulations, the buildup of overtime and extra costs in border operations and loading and unloading operations in the points of origin and destination, varying degrees of professionalism among transport companies in different countries, the excessive number of freight transshipments at borders, one-way highly seasonal traffic and with frequent ballast-only return trips, and asymmetrical tax treatment and tax pressures among countries. III. Main Challenges Upon contrasting the marked importance of the efficient and adequate provision of infrastructure services for economic and social development with the size of the infrastructure deficit in the region, it turns out to be of utmost importance for the different countries and integration group efforts to occupy themselves with aligning infrastructure policies and maximizing their effects in relation

to development. It is necessary and ever more urgent that countries devote their efforts to the creation, preservation, and expansion of transport infrastructure and the sectors support activities, especially in relation to transport infrastructure. To maximize the contribution of infrastructure services to the development agenda, the main challenges facing the region can be summarized as follows: The physical limitations in the provision of infrastructure and services. The dispersal and multiplicity of public views with respect to infrastructure and services, and the resulting lack of comprehensiveness in policy approaches in their different processes (conception, design, implementation, follow-up, financing, and evaluation). The presence of institutional and regulatory failures or obstacles in the administration of policies and the organization of markets. The absence of sustainability criteria in infrastructure services policies, especially transportation. Access to financing, the quality and success of public-private partnerships, the regulation of institutions and accounting, and the conditions of operation and maturity of infrastructure markets complete the range of questions that must be reviewed. Finally, it is of utmost importance that investments in infrastructure and related services be analyzed and executed taking into account the following: i) the level of coverage provided: ii) the quality of services; iii) sustainability; iv) coordination with complementary infrastructure services (in the case of transportation, inter-modality). Also, it is important to consider that investments in infrastructure must take into account not only the expansion of capacity but also its upkeep.

6 Gonzlez, Julio, Jos Luis Guasch and Toms Serebrisky (2008), Improving logistics costs for transportation and trade facilitation, Policy Research Working Paper No. 4558, World Bank, Washington, D.C.

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INFRASTRUCTURE FOR COMPETITIVENESS: BUILDING LATIN AMERICAS FUTURE


This year, the VII Americas Competitiveness Forum and the Inter-American Competitiveness Network focus their attention on infrastructure and technology as key elements for the future development of the countries of the region. This decision is not trivial, it is the full acknowledgement that the development and competitiveness of Latin American economies and the whole world cannot have solid foundations if they cannot rely on a viable, functional, and sustainable infrastructure, and as a result progress will not be sustainable in the long term. Competitiveness and Infrastructure The changing international financial situation has forced the reassessment of strategies for promoting the sustainable development of countries. Those actions that refer to the promotion of competitiveness are not exempt from doubts about their effectiveness: in the last decade, international institutions such as the World Economic Forum (WEF) and the Institute for Management Development (IMD) have been adjusting their definition of what competitiveness is. Even more importantly, they have conducted important analyses about what indicators are to be used to measure it. An important question arises: To what extent will promoting competitiveness achieve sustainable growth and bring acceptable levels of wellbeing to the population? The latest reports on the global economic performance show that, contrary to what was expected, emerging countries have entered a deceleration phase. According to projections by the International Monetary Fund (IMF), the prognosis for global growth for 2013 (WEO report, July 2013) is about 3%, a similar rate as in 2012. This is due in large part to the lower rhythm of growth of some emerging nations that are considered key in global markets that have felt the negative impact of the slow recovery of advanced countries, credit restrictions (given the volatility of financial markets), and the uncertainty in the price of assets. According to the Inter-American Development Bank (IDB), in the case of Latin America growth projections for 2013 fell in Brazil (0.2%), Chile (0.2%), Mexico (0.2%), Paraguay (0.1%), and Peru (0.1%), and they held steady in Colombia and Guatemala. Among the factors that cause this negative effect, according to IMF analysts, are: the lack of infrastructure to support the risks of a volatile economy; high dependence on external demand; a reduction in prices of raw materials; and vulnerability before internal policies that do not respond to the new fiscal and monetary needs. Faced with this landscape, a paradigm to consider is to make emerging countries more competitive by translating this objective into productivity and investment attraction. However, recognizing that competitiveness is a complex concept that encompasses diverse dimensions (the WEF measures it in 12 pillars, broken down into 333 variables and opinion surveys, while the IMD does it using 4 critical integrating factors with more than 300 variables and opinion surveys), it is difficult for decision makers to select the most urgent route to follow. Whichever definition is selected to measure competitiveness, the infrastructure component appears as the platform on which to conduct economic, political, and social activities to make possible, in a framework with other critical elements, the creation of an environment that fosters productivity and generates wealth.

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According to an analysis conducted for Mexico in 2008 by the Social Studies and Public Opinion Center of the House of Representatives (Working paper No. 60, 2008), a very close relationship was found between a countrys global competitiveness ranking in the WEF and IMD indexes and its infrastructure sub-index. It is worth mentioning that the components of both indexes differ conceptually, since to IMD infrastructure includes indicators such as healthcare and education, in addition to basic, technological and scientific infrastructure, while to WEF healthcare and education constitute a separate pillar that includes general infrastructure in addition to electricity, highways, and telephone communication. When developing the methodology to build the Subnational Competitiveness Index of Mexican States, Tec de Monterrey decided to follow the approach of the IMD. This approach has a broader definition of infrastructure which better matches the characteristics of Mexico as an emerging country its high geographic heterogeneity that causes the portfolio of resources of every region to be different, coupled with a cultural diversity that makes more difficult the implementation of standardized public policy actions. The concept of infrastructure adopted by Tec de Monterrey alongside the other 3 critical factors generated an approach that made it possible to have a methodology to identify the competitiveness profile of each State in Mexico and locate their relative position. Additionally, Tec de Monterrey index built in 2012 seeks to identify the factors that determine the competitiveness of the States in the long term, defining 19 indicators that explain 90% of the shift in the Global Competitiveness Index. These factors represent the competitiveness (infra) structure of the states. Infrastructure for competitiveness Infrastructure is where competitiveness and the effective operation of economies is founded and sustained. As such, the concept is part of the

different measurements and competitiveness indexes that are built at the national as well as the subnational levels, but as has been already noted with different meanings. The IMD positions infrastructure as one of its four competitiveness pillars and includes elements that go beyond basic infrastructure, by including technology infrastructure, scientific infrastructure, healthcare systems, environment and education. In the Global Competitiveness Report, the WEF considers infrastructure as one of its twelve pillars, but only includes physical elements (highways, railways, airports, telephone services, etc.), while other elements such as education, healthcare, and innovation are included in different pillars. Before this landscape, it was necessary to define what we refer to by infrastructure, and what infrastructure is essential to achieve development and wellbeing. The dictionary of the Real Academia Espaola defines infrastructure as the set of elements or services considered necessary for the creation and operation of any organization in our case, the economies of Latin America. If we follow this definition, we see that to ensure the development and operation of an economy, much more than steel and concrete is needed. The true meaning of infrastructure must be based on its function. Infrastructure is key not only for economic growth, but also for its impact on overcoming poverty and inequality. The fulfillment of the Millennium Development Goals, for example, would not be possible without adequate infrastructure, physical as well as organizational and institutional. At the other extreme, innovation and technological development will not be possible without a solid base that includes not only laboratories and research centers but also human capital and institutions for development.

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Functional Infrastructure It is necessary to understand infrastructure as something functional, whose goal is to facilitate the production and distribution of goods, services, and the transportation of people. What is required for this is not just physical structures, but a set of elements that include human resources, institutions, and rules that determine policies, administrative practices, and operations to interact in the market while defining transaction costs. Infrastructure includes hard and soft elements. Hard infrastructure refers to traditional elements (steel and concrete) such as highways, ports, airports, dams, ducts, canals, bridges, etc., while soft infrastructure refers to human capital as well as the institutions that make possible the operation of economies, and they include social and cultural systems, the financial system, economic regulation and the system of government (administration of justice, safety, etc.), as well as healthcare, social safety and educational systems. FUNCTIONAL INFRASTRUCTURE

and a third still comes from hydrocarbons such as oil and natural gas (WB, World Development Indicators). After decades of low investment in Latin Americas infrastructure, a slight recovery has begun in recent years. That is, however, not enough: most countries range from 1.5 to 4.5% of GDP, and most of it continues to be public investment (CAF 2012, Infrastructure in the Integral Development of Latin America). On the other hand, spending on research and development in Latin America barely reached 0.78 of GDP between 2005-2010 (WB, World Development Indicators). Faced with this situation, growth also has been less than expected for most emerging countries. It has been argued that one of the factors to blame is the lack of adequate infrastructure. At the same time, progress in infrastructure projects as important as the expansion of the Panama Canal must be recognized. This represents, from a functional approach, not only a physical structure but also a set of institutional, organizational, and governance factors that are ultimately going to influence global trade. Finally, challenges on matters of urban development cannot be left out. With a growing population in urban areas, the subject of mobility, sustainability, the provision of public services (water, energy, etc.) will become essential. Planning of urban densification must accelerate and the growing global risks derived from climate change must be taken very seriously. The search for resilience in productive and urban systems must become a priority.

Landscape in Latin America Latin America represents an important challenge on matters of infrastructure. It comprises more than 22 million square kilometers and almost 600 million people. According to data from the World Bank, 79% of the population lives in urban areas and only 21% of roads are paved; only 4.4% of electric power generation is from renewable sources, while 54% is generated by hydropower

Some Recommendations for the Development of Infrastructure To better solve the needs of transportation, energy, access to potable water, communication, healthcare, education, etc., sizable investments of public and private resources are needed. So, to simply recommend greater investment becomes naive. The challenge is to come up with new strategies to solve the problem

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of transportation, improve the systems of sanitation and public health, foster innovation, among others. Faced with this panorama, the new publicprivate investment frameworks represent an opportunity to increase participation by private investors for the development of hard infrastructure. As emerging economies, the region also has access to resources and support from international organizations that foster the development of infrastructure. Nevertheless, the challenges facing Latin America in infrastructure for innovation, technology and competitiveness in general must also be directed to the development of so-called soft infrastructure. Large works of infrastructure, like the expansion of the Panama Canal or the InterAmerican highway, for example, are necessary. But we must not lose sight of the function of infrastructure in the development of economies this is why the development of institutions and human capital must go hand in hand in setting the foundations of a competitiveness that is characterized by true social sustainability.

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Interview with Robert Puentes

Senior Fellow, Brookings Institutions Metropolitan Policy Program

Keynote Speaker, VII Americas Competitiveness Forum Panama City, Panama


Presents his perspective on key components of competitive infrastructure in Latin America and the Caribbean, specifically regarding the Panama Canal and the construction of commuter trains.
Robert Puentes Director of the Metropolitan Infrastructure Initiative at the Brookings Institution. Has written multiple articles on transportation and infrastructure, urban planning, growth management, and housing.

What are some components of competitive infrastructure that could serve as a platform for enhancing productivity and prosperity? Goods trade is the exchange of physical products. It is one of the single most important processes to create the modern economies in which we live. Without goods trade, communities would be forced to subsist solely on the goods it could produce from local inputs, whether they be raw materials or manufactured products. Goods trade allows markets to compare their own inputs and products to what is available among all of their trading peers. We talk about trade all the time in terms of national deficits and trade balances. What we dont talk about is metropolitan areas and how they connect to, and trade with, one another. So, the infrastructure conversation really should be derivative of a larger economic goal: the stimulation of trade. In this way, we should think about infrastructure in service of economic growth and prosperity. If the economic ambition is to increase goods trade, exports, or to create a more productive economy, that leads to a series of infrastructure investments. In terms of a metropolitan areas exchange of goods, this means freight infrastructureroads and rails, ports and everything in between. Understanding goods trade relationships is the first step.

Within your work at Brookings, you often refer to the term global fluency when you talk about U.S. Metropolitan areas. Is this term applicable to countries in Latin America and the Caribbean? It is certainly applicable. As economies become more global, and as the trade of goods and services becomes a central component of how metropolitan economies function, global fluency is important. This refers to the level of global competence, practice, and of reach, that metropolitan areas exhibit in an increasingly interconnected world economy. It helps you to better adapt a city to optimize benefits of globalization. I do think it matters beyond the United States because of the changing global dynamic and the rapid growth in Latin America. Understanding global connections is a big piece of global fluency and the global orientation of markets is vital. How do you view the expansion of the Panama Canal in terms of its impact on trade and logistics in the hemisphere? All along the Atlantic coast, metropolitan areas are in an arms race to expand their ports and to increase access to their ports from roads and rails. The expansion of the Canal promises bigger ships and better cargo loads. But what

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is lost in that arms race is what this newly expanded canal means for the larger economy. We cannot simply assume that all metropolitan areas will immediately acquire new freight business when the Canal opens. These are billion dollar assumptions that ignore fundamental questions like: What does it mean for goods trade? Building infrastructure itself does not necessarily mean an increase in economic growth competitiveness. Its less predicated on ship size and more focused on economy size or economy orientation. What are your thoughts on commuter trains and on how to build infrastructure that would improve life quality and efficiency in the next ten years? Today, transportation analysts increasingly consider accessibility to be a better measure of system performance than traditional mobility. It is at least as important for metropolitan residents to be able to access a range of activities, such as jobs, via the transportation system, than it is for systems to simply move vehicles faster and reduce travel times. One important way workers get to work is via public transit - a metropolitan train system or commuter train. So we have to start thinking about these investments as a way to start improving access to economic opportunity. The challenge in many areas is getting low-income residents from out on the suburban fringe into the urban core, where jobs and education opportunities are. What key lessons on urban planning that promote competitiveness can you draw from good practices in the United States and around the world? The number one lesson we have learned is places have to build on existing strengths. This means cities and metropolitan areas need to focus on what they already do well, and they need to improve these processes rather than merely chasing the economic development idea of the day. Second, in light of the recession, we are reminded of the need to focus on a productive, rather than consumption

economy. This means a clear focus on boosting manufacturing, advanced industries, global trade, and technological innovation. The third thing, related to that, is a need to trade globally. Trade is becoming increasingly important to global and national economies, thanks in part to the growth of metro areas in Latin America and Asia. Lastly, we need to focus on transformative investments. People must not be afraid to make large investments, especially when it comes to infrastructure. The Panama Canal is a perfect example of a large-scale investment that has proven to be a driving factor for the economy.

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Interview with Chelsea (Chip) White III, Ph.D.

Schneider National Chair in Transportation and Logistics, Georgia Institute of Technology

Keynote Speaker, VII Americas Competitiveness Forum Panama City, Panama


Presents his perspective on logistical development and the impact of information technology on infrastructure in Panama and the greater region of Latin America.
Served on the faculties of The University of Virginia (19761990) and UM (1990-2001). Director of The Trucking Industry Program and former Executive Director of The Logistics Institute at GIT. Serves on the boards of directors for Conway, Inc. (NYSE: CNW), The Logistics Institute: Asia Pacific, The Industry Studies Association, and the Bobby Dodd Institute. Former member of the board of ITS America and the ITS World Congress.

Chelsea White

In terms of logistics, what priorities do countries need to address to be more competitive in coming decades? Competitiveness involves more than just logistics. It involves a lot of other things, including both physical and information infrastructures for moving goods and information. In many Latin American countries there is a need for physical infrastructure improvements. We see a trend in supply chain management that involves realtime control, based on real-time data. Ultimately, we also need an information infrastructure in place to support this trend. Let me also mention the innovation ecology, the laws and regulations that affect the movement of goods in and out of a country and more generally the capacity to innovate. In order to make use of an efficient logistics industry, you need goods to move both imports and exports. An advantage Latin America has is the increasing wage structure in China. Supplier footprints for supply chains for U.S. and European markets are moving to Mexico, the Caribbean, and Latin America. These regions need to provide a healthy supplier base for the rest of the world. This also requires an investment in people and in an educational process that develops innovative-savvy skills.

In terms of the value chain and logistics, what are Latin Americas key strengths and weaknesses? An advantage is the regions proximity to sea shipping. That does not reduce the need for good road or rail infrastructure, which is certainly a weakness in some parts of the region. Latin America also has an advantage just because it can be a fun place to be. It can become a hub for innovation and investment if it can attract and retain the creative knowledge worker. An obvious strength that Panama has is the Panama Canal, a potential place for valueadded innovations. A weakness that Panama has is also the Panama Canal. It is easy, with a resource that can create wealth due to a commodity or special location, not to feel the need to continuously innovate. The Panama Canal is possibly a double-edged sword in that sense.

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How do the Americas compare themselves with the rest of the world? North America and the EU have a lot of regulations and political climates that are relatively consistent across the region. Latin America is different: it is more diversified in terms of access to water, climate, and in terms of tax structures. Also, there is a lot of variability in terms of the countries being easy to do business with, in labor market efficiency, the economic bases of the country, and industries that generate the most GDP. Another distinction is that many Latin American countries are small, which suggests all kinds of interesting challenges. The need for cooperationparticularly from an economic perspective- is much stronger than the need for cooperation from a country with a large land mass. In your experience, what models and practices should be considered by Latin America and the Caribbean to both improve existing value chains and generate new opportunities? There are two ways of looking at economic development. The first approach involves figuring out what industries will create jobs and wealth in the future, and then investing in those. The second approach involves investing in people. Why dont we work on turning our country, our place in the world, into an interesting place to be for creative, highly-educated individuals and then let them chose the industries? This means finding, attracting, and retaining the talent and providing the enabling venture capital and infrastructures.

Taking into account the rapid advance of technology and communications, what are some priorities you recommend to high level authorities and competitiveness councils of the region for the next decade? Excluding Brazil, Latin American countries are relatively small. In terms of regional interactions, I recommend developing a coordinated body to oversee both sea and land transport for the region. Further, I recommend developing an intermodal network. There is a need for coordination and cooperation in terms of moving goods, money, and information. What are two areas in which you think it is possible to advance through cooperation among private and public actors from various countries in the region? To speed up policymaking processes is a challenge everywhere. The first area I would like to see advanced is physical and information infrastructure. The second area I would like to see advanced is in the investment of peopleinnovators, entrepreneurs, and those who can generate wealth not only for themselves but for society. If you gave me a third issue, I would say innovation ecologythe legal system, the tax system, the economic incentive system in place that will attract not only companies and organizations, but also creative knowledge workers.

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Latin America and the Caribbean infrastructure: Building Blocks to Competitiveness Summary for the 2013 RIAC Signs of Competitiveness Report

Barbara Kotschwar

Peterson Institute for International Economics September 24, 2013

Latin America stands at a crossroads. A decade of favorable international economic conditions has spurred significant growth in many of the regions economies. Sound macroeconomic policies and targeted programs have lifted more than 73 million Latin Americans out of poverty, growing 7 the middle class by 50%. As Chinas growth has started to moderate and commodity prices have curbed their climb, those tailwinds have started to turn. Latin Americas challenge is to find a strategy that will prepare it to maintain and build upon the gains from the last decade while confronting headwinds in a highly competitive international economy. One of the regions key challenges in competing in a tightly globalized international economy is a major infrastructure gap. This was recently underlined by Brazilian President Dilma Rousseff who, in a speech launching a major railway upgrade, declared Brazilian railway 8 infrastructure to be two centuries behind. The spirit of this statement (even if the magnitude is somewhat exaggerated) applies to the entire region. Inadequate infrastructure remains a key barrier to trade, growth, and development for Latin America. In this paper we focus on the infrastructure most directly connected to trade. The means for getting goods to marketrail, roads, airports and ports and electrical grids are the physical or hard

component. The soft component encompasses the networks of policies and regulations that are a necessary supplement for the system to perform well. If done properly, improvements in infrastructure can have a significant positive impact on trade, growth, and development. A panorama of Latin American infrastructure For most Latin American countries, transport costs are a greater barrier to foreign markets than import tariffs. The Inter-American Development Bank (2008) in a seminal study has calculated that, on average, a 10% cut in trade costs would raise exports by more than 60%. Table 1 illustrates a number of competitiveness indicators that illustrate how the region performs in terms of transport infrastructure-related outcomes, compared to East Asian countries. A full version of Table 1, with data by country, is included in the Appendix which is available in the full version of this paper in the RIAC portal.

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7 According to World Bank statistics. 8 Quoted in Leahy, Joe.2013. Brazil risks lost decade as it bungles infrastructure boost: Transport investment still lags far behind other large economies, Financial Times, September 22.

SIGNS OF COMPETITIVENESS IN THE AMERICAS REPORT - 2013

Table 1. Trade-related Transactions Cost Indicators, 2012

Table 2. Hard infrastructure quality An immediate takeaway from this table is the significant difference in the cost of transporting a 20-ft container from Latin America versus developing East Asia. On average it takes USD$1279 to export and USD$1633 to import a container from Latin America than from Asia. This cost takes into account customs fees, administrative and other fees and inland transport. Table 2 examines quality of transport infrastructure indicators from the World Economic Forums Global Competitiveness Index. Disaggregating hard infrastructure into its different components, a few results become apparent. First, Latin America performs poorly compared to developing East Asia and to the OECD average. Second, the performance is poorest in rail and roads, the latter being one of the main modes of transport for goods.

These figures make a compelling case for placing an upgrade of Latin Americas infrastructure front and center on the public policy priority agenda. Better infrastructure increases the ability to move goods, services, and ideas within countries and to exchange goods, services, and ideas from one country to another. It decreases transportation costs, reduces inventory and logistical costs, thereby expanding markets. Improved infrastructure benefits producers and consumers and makes the region more attractive to foreign direct investment (FDI). Improved infrastructure also allows for a more equitable distribution of benefits by enhancing

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the populations ability to take advantage of important health and education services essential for development. Infrastructure has an important role to play in reducing rural poverty; by connecting farmers and/or small business owners in isolated geographic pockets to mainstream markets, infrastructure helps combat their social and economic exclusion. Infrastructure plays three main roles: Infrastructure as a development platform Economists have found a positive link between improved infrastructure and growth. Various studies have pointed to the quality and quantity of infrastructure as an important factor in explaining the growth differential between East Asia and other developing countries. Caldern and Serven (2004) find a positive growth impact from improving the quality and quantity of infrastructure. Effectiveness in the use of infrastructure was found to explain about a quarter of the growth differential between Latin America and East Asia and more than 40% of the differential between low and high-growth countries. Infrastructure supports growth and poverty reduction both directly, by serving as a production factor and indirectly, by facilitating technological progress. An increase in the stock of infrastructure capital has a direct impact on the increase in the productivity of other factors 9 (Straub and Terada-Hagiwara (2011). Improving infrastructure can also have an equity boost. Better access to roads and sanitation can lower a countrys Gini coefficient. Improving transport infrastructure increases access to economic activity, thereby mitigating income inequality not an insignificant offering in a region marked by highly unequal income distribution. If all Latin American countries were to upgrade their infrastructure to match the regional infrastructure leader, they could augment their growth by an estimated 1.1 and 4.8 percentage point per annum and reduce their Gini 10 coefficients by between 0.02 and 1.0. Reaching the standards of a median East Asian country

would provide even greater gainsgrowth boosts of between 3.2 and 6.3% per year and Gini reductions of 0.05 to .13. Infrastructure as a trade booster Global supply chains have become more integrated over the past decades, and production is increasingly segmented across countries and continents. Poor quality infrastructure may effectively exclude some countries from supply chains of time-sensitive, highly complex manufactures, which tend to have a higher added value. Hummels (2007) has calculated the tariff equivalents of trade delaysthe delays related to customs and inland transport, the time goods spend waiting in portsand finds that Latin Americas tariff equivalent of time is 8.9%, versus the applied tariff of 7.0%; for East Asia and the Pacific it is 6.9% over an applied 11 tariff of 5.6%. The Inter-American Development Bank estimates that transport costs are more than four times greater than tariff costs in Latin America. Mitigating or eliminating these cost differentials will help reduce the cost difference between Asian and Latin American goods. Bolstering infrastructure can be a big step to helping increase the regions integration into the global supply chain, a goal of, among others, the Pacific Alliance. Infrastructure as a competitiveness enhancer Finally, infrastructure improvement will most directly help enhance the competitiveness of the firms who use that infrastructure to get their goods and services to market. For example, the IDB estimates that a 10%cut in freight costs could boost plant productivity in Brazil and Chile by 0.5 and 0.7%, respectively. Hummels explains that the cost of delays is not only in the barriers to trade in existing products, but in the opportunity cost of products that are not exported as a result of the costs of transporting the goods.

9 Straub and Terada-Hagiwara find that the growth impact is mainly through the direct effect of factor accumulation rather than through enhanced productivity. 10 The Gini coefficient is an indicator of the equality of a countrys distribution of income. It ranges from the extreme equality value of zero, where all members of the system have the exact same income, to extreme inequality at 1.00 (where only one person has all the income). 11 These delays are attributed to the hard as well as soft aspects of infrastructure: In addition to physical transport infrastructure, Hummels mentions other factors that may contribute to these delays, including land size and distance of ports from economic activity, customs delays due to poor coordination, communication and information management, low skill level of customs and inspection staff, and corruption.

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Enhanced infrastructure could have a sufficient cost reduction effect to make internationalization possible for more companies, particularly smaller ones that had been previously excluded from the market. This is particularly important for Small and Medium Enterprises (SMEs), which often operate on very thin margins. SMEs are essential to competitiveness and growth. SMEs are an important force in most economies. A robust set of SMEs helps to stimulate competition, diversify economic activity, provide jobs for local people, and ideally, bolster innovation by providing local entrepreneurs entry into the global economy. Generally they employ about 35-45% of the workforce and contribute 30-40% of national value added (DHL). Infrastructure is important for SMEs, particularly those that are or have the potential to internationalize. According to a recent study conducted by DHL, 80% of SMEs with 50 to 249 employees and 66% of SMEs with 10 to 49 employees are international, meaning that they engage in export, import, foreign investment, subcontracting, technical or commercial cooperation activities.12 According to this study, inadequate transport infrastructures and insufficient supply of private distribution and logistics services will constrain competitiveness by limiting efficient product and service delivery. SMEs are normally less well equipped to overcome inefficiencies in public infrastructures than larger companies. For that reason, the development of services in transport, packaging and distribution, as part of a set of policy measures directed at fostering a well-functioning business environment, is particularly important to SMEs internationalization and growth.

In sum, infrastructure upgrades can spur growth, stimulate trade and help firms reach their full competitiveness potential. Inadequate infrastructure, on the other hand, is an obstacle to trade and growth, presents market distortions that decrease efficiency and reduce competitiveness. Many Latin American governments have pledged large-scale infrastructure programs to upgrade lagging roads, ports, airports and railroads. This is an important first step. Individually, and across borders, countries and institutions should make closing Latin Americas infrastructure gap a main priority.

12 Technical cooperation is defined as, for example, sharing know-how, technologies etc. Commercial cooperation is defined as marketing, distribution, among others.

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Interview with Manuel Bentez


Sub-Administrator of the Panama Canal

Keynote Speaker, VII Americas Competitiveness Forum Panama City, Panama


Presents his perspective on the expansion of the Panama Canal and the effect this will have on competitiveness in the region.
Appointed as Sub-Administrator of the Panama Canal in August of 2012. Holds a degree in Electromechanical Engineering from the Technological University of Panama and is a graduate of the Executive Development program at Cornell University. Previously served as Executive Vice-president of Operations for the Panama Canal.

Manuel Bentez

What do you expect to be the most important impact as a result of the expansion of the Panama Canal on trade and logistics in the Americas and the world? The expansion of the Canal will affect the capacity of countries in Latin America and the world to access principal markets in a more competitive manner. The Canal will permit the passage of a new generation of container ships that promise, through economies of scale, a tremendous reduction in unitary costs of transporting merchandise, as well as an important reduction in CO2 emissions per unit of transported product. There is much interest in the expansion of the Canal, from a wide range of countries but especially from countries in Asia and South America. At the same time the United States is undergoing an energy revolution with the use of natural gas, which also has a positive impact on the environment as it replaces the two other types of fossil fuels that we use today such as bunker (fuel oil) and diesel. Natural gas is 25 percent cleaner than other fossil fuels in terms of CO2 emissions. The Panama Canal will allow for the first time the passage of LNG (liquefied natural gas) carriers to markets in Asia and South America. This will grant access to countries in the region to this new type of fuel coming from the United States.

When you consider the impact of infrastructure, it is not just about the construction of the work itself. What other components have you considered in the interior of Panama as complementary in order to benefit from the expansion of the Canal as a catalyst for improvement in regards to productivity, innovation, and quality of life in your country? When we designed the program to expand the Panama Canal we identified a need for human capital formation in Panama. At that moment, we succeeded in having the national government create a National Institute of Professional Formation and Training for Human Development (INADEH) to attend to the need for an increase in the number of qualified individuals. It is interesting to see how the project of the expansion of the Canal has produced economic development across the country. Demand today for trained human resources comes not only from the expansion of the Canal but also from other projects that have sprung up around it. We are referring to investments in logistics: the expansion of the airport, construction of other airports, ports, and highways. These investments require trained human capital. In this sense, I think that the formation of human capital, which is multiplied as the expansion of the Panama Canal advances, is part of the added benefits of this project.

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One of the big questions in terms of infrastructure has to do with the mechanisms to measure the impact of public goods with a return on investment sufficiently attractive for the private sector. From the experience of the Panama Canal, do you have any methodologies or lessons to share in this regard? The need to invest in the formation of human capital is very important. We simply dont have enough engineers. We have to focus on investing in the formation of human resources in order to have specialized technicians. We sometimes dont see this type of investment as an investment. Governments and states often times see it solely as expenditure as there is no immediate return. However, when you enter into a project of this magnitude, in 6 or 7 years we can already see and measure a multiplier effect. The country sees the benefits; there is a greater capacity to create employment, greater economic development, and an increase in GDP. We have experienced this in Panama in the last couple of years. That is why it is essential to invest in the formation of human capital. It is an investment that needs to be done and where the benefits will be seen. In my opinion this is one of the key lessons that I have taken away from this project. With advancements in technology and mass media, the traditional schemes for commerce and value chains are evolving rapidly and at all levels. Bearing in mind these developments and the changes generated by the expansion of the Canal, what would be the five priorities that you would recommend high authorities and councils of competitiveness to focus on in the region during the next ten years to take advantage of these opportunities? There are several countries that are making improvements in their infrastructure to take advantage of the additional capacity that the expanded Canal will offer them. At the same time, there are some countries within Latin America that are changing to different types of infrastructures. Chile for example has strategically decided to change to natural gas and in this manner, through the Panama

Canal, acquire new routes to import natural gas. Likewise, the United States is looking to commercialize its production of natural gas through the Panama Canal. Each country is preparing its infrastructure and their strategies. In this sense we can say that the expansion of the Panama Canal is a game changer, as it offers new opportunities to different countries, whether they are consumers or producers, thereby changing the conditions of competitiveness in various chains. Could you indicate to us if you see any other complementary sector where there might exist opportunities for collaboration between Panama and other countries in the region? The experience that we have gained in Panama in terms of construction of infrastructure and managing large projects can be shared with other countries. I also think that our region should make use of technology to allow us to operate in a more integrated manner. This is something that would help the competitiveness of the region and make the movement of goods more agile. Therefore, I think that to the extent we can integrate in terms of customs and logistics, using technology, the region could be more competitive. Latin America produces a lot of goods and it is important that we integrate and act as a region in a coordinated manner.

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A NEW WAY OF TAKING CHARGE OF INFRASTRUCTURE AND TECHNOLOGY


NATIONAL COUNCIL ON INNOVATION FOR COMPETITIVENESS, CHILE

We may understand technology as a set of artifacts that serve a human purpose, that create in us some measure of satisfaction, that help us in our jobs, or allow us to expand our capabilities. The truth is we could not understand humans apart from the technologies that have shaped them throughout history: the wheel made it possible to move things which, until that moment, were impossible to drag along; the use of nails and hammers changed the way in which wood was assembled; and power plants, as well as transmission and distribution systems, opened new possibilities for life in cities. We speak of technological systems to refer to that organized set of components and artifacts which subject to norms, regulations and legal systems in harmony with each other are inseparable from the social life of people, because they make such life possible, they order or simplify it. Transportation, electricity, and telecommunications are daily examples of these systems and that is why we also understand them as the structures upon which the rest of our shared lives are ordered, like the infrastructure in permanent evolution of our social systems. A retrospective look shows us that different stages of technological development have brought along ever more complex social systems and new forms of economic organization. If there is something we may recognize in those technologies we call infrastructure, it

is that they always come with the possibility for growth and development for some while bringing obsolescence to others. And thus, we see that new practices arise alongside these technological systems, as well as new services and expectations, but also tensions or conflicts of varying degrees that require new social agreements, new common or legal norms, and new economic and political arrangements. Today, our societies and technologies have reached a stage in which any engineering project or public infrastructure work has sociopolitical implications. This is not to say that such conflicts did not exist before: What happens today is that such tensions between the State and its citizens, between large businesses and communities, between the public and private sectors, are evidence of a greater awareness of the impact of technology and the unforeseen and sometimes undesirable consequences that it may have on people and the planet. The last two centuries marked an era of engineering for the manufacture of tools for technological systems. But today we are living a different time in history. The supremacy of experts and specialists no longer sufficiently guarantees that a society is more informed, participatory, and jealous of its rights and needs. Thus, we must recognize that in the unsettled world in which we live, the development of technological systems and infrastructure is more complex than ever before.

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Beyond the logic of resolving technical problems, it is necessary to take charge of human concerns, of those preoccupations that seize all of us who share this historical moment, characterized by globalization and competitiveness, life in a plural and interconnected world, and a concern for the environment and sustainable development. This logic forces us to tune ourselves to local spaces and concerns, to address how technology and infrastructure can transform our surroundings, affect our shared lives and the everyday. It is also necessary to understand the historical meaning of artifacts or technological systems, because the spaces of possibility in which our society evolves depend in large measure on directions or decisions taken a long time ago. Without going farther, when the civilization of oil and automobiles arose in the 19th century, nobody imagined that in the 21st century we would be faced with problems caused by the effects of fossil fuels on the weather or quality of life in our cities. Yet it is these complications that constitute entrepreneurial opportunities for green energies or technologies that could not have arisen in a different time. A change of direction like the one we propose in the ways of understanding and developing technology itself demands fundamental changes in policy, which must cultivate a logic of dialogue concerned with the local and the individual, and give greater space to the tentative and the exploratory, with the understanding that every design, be it a device for personal use or a great work of infrastructure, is symbolic, creates identity, and always constitutes an intervention; a mutation of practices with ethical consequences. Another requirement is to create a profound change in education, as it is not only necessary that authorities are open to dialogue and participation but that professionals engineers and designers listen to others concerns, identify them with certain historical narratives, and connect them to ways to create value in a community.

In the face of these challenges we can act with deaf ears, feel overwhelmed or angry. But we can also participate, think, and be open to the enormous possibilities of trying new ways of learning and innovating in the ways we do development.

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Interview with Jamil Salmi


Interview with Jamil Salmi Keynote Speaker, VII Americas Competitiveness Forum Panama City, Panama
Presents his perspective on educational development and challenges for Latin America and the Caribbean.
Economist and expert on higher education. Jamil Salmi In the past 22 years, has provided policy advice to governments and university leaders in over 80 countries. Served as Coordinator of Higher Education in the World Bank from 2006 until 2012 Has published 8 books and numerous academic journals on education.

When we talk about the importance of academic excellence and counting on world class universities as an indispensable element of competitiveness, in your experience, what do you consider the three principal strengths and weaknesses of countries in Latin America and the Caribbean? In terms of strengths, in Latin America there are diversified higher education systems; that is, in general there is a good balance between public and private universities, as well between universities and non-universities such as technical institutes and schools of applied sciences. I see this as a strength in the higher education system. Additionally, I see a growing number of countries pay attention to the needs of the poor and groups of disadvantaged students. This is also equally important. Not just in terms of social justice but also in terms of economic efficiency. In all of these societal groups there are very talented people and without access to education on behalf of these disadvantaged groups, an important part of the talent in the country and the economy could be lost. Secondly, there is a good experience with accreditation systems, despite some problems and limitations. Thirdly, some countries already have a good experience in the evaluation of academic achievement at the higher education level; something that does not exist in many countries around the world. Colombia, Brazil, and Mexico are good examples, as is Panama, where they too have now started performing these measurements. Additionally, some countries have begun an important development; that of labor market observatories.

Academic achievement exams in conjunction with labor market observatories are good instruments to evaluate the impact of higher education. In terms of weaknesses, I dont see excellence in teaching, or in research and scientific production. There are islands of excellence, such as the University of Sao Paulo and private universities such as the Catholic University of Chile, Los Andes in Colombia, or Tec de Monterrey. But in a general sense, if one compares Latin America with other parts of the world, there really isnt excellence nor are there world-class universities. For me it is scandalous that the University of Sao Paulo is not amongst the hundred best universities in the world. Another big problem in Latin America is governance of public universities and insufficient funding. Beyond the problem of insufficient funding, the fundamental problem is that of inadequate governance with corporate interests and a lack of long-term vision. I dont see that countries in Latin America hold education in general, and higher education in particular, as a pillar of competitiveness as is the case in East Asia. In your publications you mention that on occasion it is easier to create a world-class university from scratch rather than try and transform already existing institutions. How do we take on a transition towards modernity and higher levels of quality in public and private universities when there is not necessarily an incentive to do so? We should look at the experience of Portugal and what Chile is doing with its performance contracts. That is, to not force all institutions to undertake a profound change all at once, but rather through

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strong financial incentives the government can convince some universities to participate voluntarily in pilot programs for transformation of their governance, with greater exposure to experiences from other countries as well as academics from other countries. I find it surprising how countries like Chile or Colombia have a foreign head coach for their national soccer teams because it is important to reach the World Cup. However, the idea of having a university president or distinguished academic from abroad is not very common in Latin America. In many countries universities are very closed off, and an academic from another city cannot move up to become university president, much less one from another university in the same country, and even less one from another country. These I believe are powerful elements to improve and transform universities in the region. What are the five priorities that you would recommend to achieve an educational framework linked to research experience and the competitiveness priorities of the region? Talking once more about the issue of longterm vision, there first has to be in place a project or plan for economic development and transformation of countries in the region that is for the future. The exploitation of natural resources alone is not enough. We have to bear in mind that in the future the great differentiator between countries will be their talent pool. Partnerships with the private sector, something that academics in many universities see as dirty or bad, as well as working with the productive sector is important. We must also have good telecommunication systems and broadband. The biggest and best ally of the Education Minister has to be the Telecommunications Minister, as with this technology it is possible to work in networks abroad in countries that possess sophisticated systems, and in this manner develop joint experiences. We must also transform teaching and learning methods and redesign them in a more interactive manner to improve the quality of teaching and have interested youth with an inclination towards research who are very motivated and well prepared.

What recommendation would you make to competitiveness authorities and what advice on innovation in the region would you give thinking forward to the next ten years? I would say to invest in telecommunication systems and laboratories. To promote collaborative networks at the national and regional level to develop a critical mass of talent in a few strategic areas linked to countries comparative advantages or strategic competitive advantages they wish to develop. It is difficult for every university in small countries to achieve a critical mass. The key is to create these collaborations to strengthen networks in areas where real investment in excellence will take place. Could you please elaborate on why it is important to combine capacities in humanities and science? Some years ago I discovered an institution called Olin College of Engineering. It is a new engineering school at the undergraduate level south of Boston. It seems to me a fantastic institution for the 21st century. Its goal is to prepare engineers that are not only specialists in engineering, but also entrepreneurs with a sense of social responsibility. Thats to say, they seek to find solutions to present and future problems that improve conditions for mankind. The theme of social responsibility and the need to join the sciences with humanities and values is something I find very important. How do you promote more participation and opportunities in conditions of equality for women in engineering education for example? Work on that has to begin from primary and secondary school and depends more heavily on creating links between universities and schools to draw youth and make them aware of less traditional models and schemes such as the traditional view that women must study nursing and men are engineers. I think that today we should showcase models and roles different from the traditional ones, whether it is through social media, social networks, movies, or soap operas.

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Interview with Arturo Condo


President of INCAE Business School Keynote Speaker, VII Americas Competitiveness Forum Panama City, Panama
Presents his perspective on the challenges in the education system in the region.
President of INCAE Business School since 2007. Obtained a PhD in Business Administration from Harvard Business School. Specializes in strategy, international business, and competitiveness.

Arturo Condo

Dr. Condo, education is identified as being one of the pillars of competitiveness by authorities and councils on competitiveness in the Americas. What do you consider the three principal strengths and weaknesses of countries in Latin America and the Caribbean? Firstly, in the past two decades in Latin America we have seen an increase in the rate of schooling; the participation rate has increased, both in primary school and secondary schools, as well as in higher education in a sustained manner. This I see as a strength; we have increased the coverage and this has been a good achievement. A second strength is that all countries in the region have the principle of state-run education as free, at least at the primary school level. This is a strength because it leads to an education distribution channel. The third strength is that average spending on education has increased in the past ten years in Latin America. It has gone from 4.2% to 5% of GDP. The three weaknesses in education in Latin America are quality, quality, and quality in three dimensions. The first is quality in a more universal sense, which is academic quality. Not all countries participate in the measures of the indices of Pisa. Those that do participate, typically those countries that are better positioned than others in the region, are nonetheless ranking low globally. Second, quality in terms of relevance. There is a divide between what students need to be taught for productive reasons and what is actually taught in school. For me this is a factor of quality

that is crucial and explains in big part dropout rates in secondary school, as a young person is not a better worker when he finishes his studies. The third dimension is the gap between state and private. It is a quality deficiency as education is assumed to be the key factor and most important lever for social mobility. Under these conditions education becomes a system of even greater social preference. Speaking of this gap, what do you consider to be some of the actions that can be taken to reduce it? I am thinking of this in two dimensions. The first is a bit more pragmatic and the second a bit more philosophical. The first is that we need to innovate, find, and experiment with new financing methods and institutional governance models. In many countries parent-teacher associations work well. Anecdotal evidence suggests to me that there is great potential when parents, community leaders, and of course, schools administrators and teachers work together. When all these agents become involved there is even sometimes investment in school infrastructure on behalf of the community. The most important part of this, however, is supervision on behalf of locals that generates an important demand and changes the dynamic within a school; this constitutes a change of governance. A more drastic change is the issue of school administration at the level of school districts, regions, or zones. In big countries, a national school system is fundamentally unable to respond to the needs of kids and adolescents

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in the Amazon, in Sao Paulo, or in Rio de Janeiro, where the economy thrives off tourism. For it to work there needs to be a change in the structure of state education towards school districts that have state supervision but combined with participation from parents and the community. Private schools are by definition, regional. They have their own strategies, requirements, and respond to their communities and environment. A third is the concept of charter schools, which are used in parts of the United States. In this system the government has the funds for the school and a group, either an NGO or a private non-profit organization (similar to parent-teacher associations, but much more empowered) run the school on behalf of the government and respond to a committee. They have the right to manage and their management has a right to hire principals, teachers, etc. The issue of hiring and firing teachers is one of the great limitations in countries in Latin America and indeed, the world. In many of our countries this process is very much politicized, as Teachers Unions tend to be an enormous political force. A fourth step that is even more revolutionary would be to use a voucher system, a concept similar to charter schools, but instead of transferring funds to a school or organization, each student manages directly his funds and decides which school to register in. It is complicated but I believe that there is a need to experiment. It could be considered for example as a partial scholarship to a private school. I think we lack innovation. The last thing I want to propose is a system of scholarships from civil society. My perspective coming from a business school is very business oriented, and despite the fact that businesspeople in Latin America are very averse to paying more taxes, when there is a good cause that makes sense to them, time and time again they contribute. A dramatic example is that of Colombia when the peak of violence hit the country. During this time Colombian businesspeople accepted paying a specific tax for security-related purposes in exchange for it to be managed separately in an independent fund. They did this and it contributed immensely to the improvement in the security situation. With that same logic we could propose to business people a tax, or maybe we could call it a scholarship, for people of their city, from their communities,

who meet certain standards and performance requirements; that would be revolutionary. It would be the equivalent of an educational voucher paid by the private sector. The second, which is more philosophical, is to not confuse public education with state education. We call public education what is in fact state education, and what public education should be is people, rich or poor, attending the same school. Costa Rica has a good track record in education. In their private schools they have international baccalaureate programs. Some years ago a group of businesspeople helped support the implementation of international baccalaureate programs in state schools. The state pays for the cost of the program and a foundation covers the technology transfer. In this manner you create a public good. Presently there are twelve state schools in Costa Rica with international baccalaureate programs, something that was unheard of some time ago. How has the training profile changed in order to have more entrepreneurs in the region contribute to economic development of the countries and be seen as professional role models? We are lacking entrepreneurship in Latin America. Three ideas we worked on as part of the group of Young Global Leaders from Latin America during the World Economic Forum were: First, is the issue of attitudes, this is not a region where businesspeople are heroes and is a region where heroes are not businesspeople. Heroes are singers, football players, politicians; sometimes even bad people are heroes. Secondly, Latin America is a region that does not have a high level of financial literacy. Basic financial tools and instruments involving money and the importance of savings, etc. from an early age is an important issue because without this it is very difficult to connect effort and rewards within the business context. Another basic tool is business training to 12-13 year old boys and girls, who are generally in secondary school, in order to teach them how to build their own business. This is something that is offered in the United States as part of a general education with a methodology that is completely

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adoptable by all schools, whether state or private, wherever. Another space that requires an even deeper change in education, and goes far beyond attitudes towards businesspeople, is the approach toward the management of creativity and learning methods. In Latin America education is very much based on memorization and not sufficiently creative. We have in all of Latin America a paradigm that says that it is wrong to be wrong. The paradigm of creativity is that being wrong and trying several times is part of the process. Youre never going to find the solution on the first try. This big cultural change implies new learning methods. That dimension of creativity has to be taken advantage of with the connectivity that exists in todays world. We can bring together a kid from any part of Latin America with technology entrepreneurs in whichever part of the world. Doing so would be a nice way to go about changing the culture and paradigms and in the process create new heroes. Do you think there is any room to encourage talent or skills initiatives in the region? There are two things that would make a big difference. First is the accreditation of universities. A regional accreditation system would allow us to set standards based on quality and not in the interest of protection. This is a viable project albeit one that would take years to get. The second, which is a bit more difficult but can be started on, is the international mobility of university graduates. The lack of mobility acts to slow competitiveness and talent itself.

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KNOWLEDGE INFRASTRUCTURES: A REFLECTION FOR THE LATIN AMERICAN CONTEXT MIKEL NAVARRO AND EDURNE MAGRO
INSTITUTE OF COMPETITIVENESS AND DEUSTO BUSINESS SCHOOL

In the last 25 years of the 20th century, the Innovation Economy has made it clear that it must not be understood as the result of the isolated actions of an individual or enterprise, but that innovation is before anything else a social process. Its this conviction that the innovative capacity of an organization depends on the system in which it is immersed that led to the appearance, in the decade of the 1980s, of the trend in innovation systems. This trend assumes that knowledge infrastructures constitute a fundamental part of said system. It is not surprising, therefore, that the content and characterization of these knowledge infrastructures depends on the understanding their authors have of innovation systems. Thus, there is a whole series of authors (Nelson, Winter, Niosi) who with the goal of not encompassing too large a number of organizations, institutions or functions, and focusing on what they consider most decisive to economic development direct their studies to organizations and institutions organized around R&D and technological innovation. Other authors (Lundvall, Asheim, Cooke) believe the aforementioned is only one of the different types of knowledge necessary for economic development, and that other types of knowledge and innovative activities are also necessary, especially in sectors that are not high technology, in SMEs, in services activities

and in countries that are not at the forefront of scientific knowledge. Precisely because of Latin Americas level of development, and the types of activities and businesses that predominate there, the innovation system perspective (and related infrastructure) that is most pertinent to the region is that which does not limit the knowledge needed for conducting innovation to R&D. For these reasons, governments should consider the development of knowledge infrastructures, and not just R&D infrastructures. The importance and content attributed to knowledge infrastructures has been changing throughout time. The literature and policy begin to explicitly address knowledge infrastructures and justify their existence basically after the Second World War, and these are limited in large measure to scientific infrastructure. Technology infrastructure is added to these in the 1960s and 1980s of the last century. And in the mid1990s the literature begins to concern itself with non-technological knowledge infrastructure (the so-called knowledge-intensive business services), which Den Hertog called secondary knowledge infrastructures. From among the different definitions of knowledge infrastructure found in the literature we consider particularly appropriate that of Smith (1997 and 2000), for whom knowledge infrastructures are composed of the whole of public and private organizations and institutions whose role consists in

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the production, maintenance, distribution, administration and protection of knowledge, and which possess certain specific characteristics (economies of scale, indivisibility, multiple users and externalities). Smith disaggregates the general function contained in his definition into the following categories: Production and dissemination of knowledge Education, training, and creation of skills Standards, regulation and protection of technical activities Business creation Maintenance, access and dissemination In this brief piece, we will focus on organizations that seek to provide the first two of these. Traditionally, the literature and policies concern themselves with three types of organizations: universities, public research organizations, and technology centers. From a broad perspective of innovation systems and knowledge infrastructure, knowledge-intensive business services and professional training centers must be added to these. Beginning with the university, the literature recognizes three basic missions of this infrastructure: education, research, and knowledge transfer (also called third mission). In all countries, higher education is a function unequivocally assigned to this type of organization. Something different happens with research, since some countries (such as France, Germany, Italy, Spain, or the so-called transition economies of the European Union) chose to develop it in public organizations dedicated practically exclusively to research, and separate from the university. Nevertheless, this model is in decline, and there is growing agreement that, except in specific circumstances, it is preferable that basic research be developed jointly alongside teaching, due to the number of positive

spillovers that benefit society (especially in the training of researchers). Lastly, the implication in the third mission via the creation of knowledge transfer offices, intellectual property administration, startup and spinoff creation by universities is a relatively recent phenomenon that has made greater progress in the economy of the United States than in European ones. What is most worth highlighting for Latin American countries, regarding this type of organization, is that every university should have a differentiated strategy, and that figures like the Shanghai rankings are only of reference for a certain type of global university (with a strong focus on international research) that may not be found in an emerging or developing country. It may be essential to adjust its university profile to the economic and business structures of the country or region, as well as to develop a line of research and third mission connected to its territory. To develop such strategies, universities require financing and autonomy. With respect to financing, the literature is conclusive on the positive impact that spending on education has on competitiveness. In exchange for the autonomy that universities must have to be able to adopt strategies adapted to their circumstances and not limited by multiple administrative regulations, there must be greater accountability made possible through changes in governance to allow entry to social and business representatives, so the universitys strategy and missions may effectively respond to the interests of the territory where it is located. Regarding public research organizations, the literature points to two fundamental types: some with a more generic character and a more academic orientation (such as the Max Planck institute in Germany, CNRS in France, CSIC in Spain), and others that operate in more specific environments, to make possible the development of a specific mission, and are frequently dependent on a specific government

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ministry or department. In general, public research organizations have been losing a certain relative weight in innovation systems and have been increasing financing from competitive sources. Simultaneously, they have been adopting legal forms to acquire greater autonomy and give greater consideration to socio-economic problems in the research they conduct. What is more, the changes that have been made in the modes of production of knowledge (the ever more multidisciplinary character required for scientific-technological progress, the need to combine knowledge from different agents) have led to the appearance of hybrid research organizations, with much more flexible administrative structures and with the presence of different types of actors in their government bodies. Their research tends to have a multidisciplinary character, developed in cooperation with researchers belonging to organizations of a different nature, with the objective of resolving problems and not merely with the goal of advancing knowledge for its own sake. Paradigmatic examples of these new types of hybrid organizations are cooperative research centers, competency centers, and centers of excellence that initially arose in the United States, expanded to the rest of North America and Australia, and later to an important number of European countries (Sweden, Austria, and the Netherlands). While the abovementioned organizations are oriented in large measure towards basic and strategic research, technology centers that have shown large growth in the world since the decade of the 1980s are generally characterized as nonprofit institutions that conduct applied research for the development of their own capabilities through R&D activities largely financed through public funds. Based on capabilities thus generated, they later sign contracts with businesses to develop projects of a different type: in some cases R&D and in other cases technical services (measurement,

tests, standards, certification), diffusion (demonstration, information and databases), consultancy, training, etc. This is a more flexible organization to set up than the university, and easier to adjust in the short term to the needs of the local productive tissue, which is why governments (especially regional ones that sometimes lack the necessary competencies in the university environment) frequently resort to this to cover the technological knowledge needs of businesses. The strategic positioning carried out by the center is also key in this case: whether it is going to focus on R&D activities or incorporate softer elements (technical services and consultancy) in its products menu; whether it is going to specialize in a sector or technology or opt for multi-sector or poly-technological approaches; what type of business is it going to assist (only large and medium-large, or also small); and in what geographic area is it going to operate (regional, national or international). What is essential from the point of view of leaders is to form the connection of this figure with the rest of the systems agents and especially with businesses. A key element of that interconnectedness is the mobility of research personnel. As such, a centers job rotation policies (such as those of the Fraunhofer institutes in Germany) and the creation of tight links with the university are particularly effective in achieving this connectivity, as well as in achieving an effective transfer of knowledge from these organizations to businesses. In many places, a reductionist understanding dominates the types of knowledge necessary for innovation (one even equates innovation with R&D), and that coincides with a very industrialist vision of the economy and of innovation. An additional fact is that as we distance ourselves from basic research and move closer to production and commercialization on the chain of innovation, market and system failures that

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justify public intervention are fewer (and of a different type). As a result, knowledge-intensive business services (KIBS), which are generally private organizations whose main function is to provide and frequently co-create such knowledge with user businesses, have long been forgotten by the literature and are still forgotten by policies. Authors like Miles, Den Hertog and Tether, who reclaim the key role of this type of organization, began to correct this in the 1990s. Thus, today there are various classical authors of innovation systems (Lundvall, Jensen, Edquist, Soete) who note that KIBS fulfill a similar function to that of capital goods in the past in propelling or transferring innovation throughout the system. When we speak of KIBS we are referring to information services companies, engineering businesses, design services, management consultancies, market research and advertising companies, and architecture. The significance of these organizations has grown to the extent that not only is the greatest part of the population in all countries already occupied in the services sector, but even in industrial businesses competitive success relies more on incorporating or integrating advanced services into their products, and offering integral solutions instead of only goods. Furthermore, in line with the growing importance acquired by open innovation models, businesses seek to obtain knowledge not based on R&D from external agents (in this case, from KIBS). Latin American leaders must be aware of the capital importance of a vibrant KIBS sector for the competitiveness of businesses, especially SMEs, which are those that make up the greatest part of business. When it comes to boosting their development, they must take into account the polarization and specialization tendencies found in such organizations, as well as the implications in terms of geographic concentration of these activities on urban centers and metropolitan capitals to facilitate access to such services from different parts of the territory.

Lastly, another organization often forgotten by the literature and innovation policies despite its major significance (as the German case makes clear) is the center for professional training. In addition to early professional education (that is, education designed to provide youth with the studies that incorporate theoretical and practical learning for specific jobs, prior to their incorporation into the labor market), these centers offer, in some places, occupational professional education (aimed at the unemployed with the goal of helping them back into the labor market), and continuing professional education (aimed at active workers who wish to acquire new skills to remain permanently up to date). Generally, centers that offer these last two types of education offer more advanced programs adjusted to the requirements of the productive world, so that it becomes desirable to move towards integral education programs. In some places, professional education centers have gone beyond and have begun to fill a hole that the remaining knowledge infrastructure organizations did not wish or did not know how to fill: support services for innovation of small businesses, whose demands are not sophisticated enough or large enough to attract the interest of organizations such as technological centers or research centers, or that remain far from the reach of small businesses because of culture, language, or even physical proximity. In general, small businesses depend more on local surroundings, and organizations such as professional education centers, which are more spread out in the territory, may have a role in the production of knowledge or its dissemination, and in mediation with other agents. Among the services that professional education centers may provide, the international experience points to R&D functions that are not sophisticated, technological services (access to equipment and plants, metrology, experiments and tests with materials), technological observation and guidance, the role of mediation with other agents, fomenting business cooperation, incubation or entrepreneurship, and fomenting clusters.

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In sum, knowledge infrastructures are a key part of every innovation system. It is advisable that all countries and regions contemplate the role of these infrastructures in their strategies, and that it be done from a broad perspective of innovation and with the necessary knowledge to achieve it, so that knowledge infrastructure may not be limited to R&D. Beginning from a systemic perspective means that the role of every component cannot be evaluated without taking into account the remaining components: a specific function (e.g. basic research) can be fulfilled by more than one agent; and every agent can carry out more than one function. Thus, it is important to undertake the analysis and design of knowledge infrastructures from a systemic perspective. In particular, the systems performance depends more on the relationships between different components, rather than on how every component is organized or operates. And above all, it is not worth laying out a knowledge infrastructure policy from an offer-only perspective, that is, without taking into account the characteristics and absorptive capacity of businesses, who are those that in the end innovate and transform knowledge into value. In this sense, there are no policies or knowledge infrastructure frameworks valid for all territories (one size does not fit all), though in this brief work we have tried to highlight a few general principles that may guide the contextualization required by every R&D, strategy, and policy.

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ESSAY ON THE COMPETITIVENESS OF THE CENTRAL AMERICAN BANK FOR ECONOMIC INTEGRATION
IN THE SECTORS OF ENERGY INFRASTRUCTURE, PRODUCTIVE INFRASTRUCTURE, AND SOCIAL INFRASTRUCTURE Project Formulation Department

Since it was founded in 1960, the Central American Bank for Economic Integration (CABEI) has become one of the main sources of financial resources and technical assistance for the creation of national and regional initiatives in the areas of competitiveness, integration, and sustainable development in the Central American Isthmus, positioning itself as the main source of multilateral funding for the Region. In this context, CABEI has been implementing its Institutional Strategy 2010-2014: Competitiveness with Integration and Social Development, within which it seeks to increase impact on development, support fulfillment of millennium goals, and contribute to the economic reactivation of the Central American region. The strategy is framed within three fundamental axes: Social Development, Competitiveness, and Regional Integration; they are linked by the cross-cutting axis of Environmental Sustainability, with the goal of guaranteeing that outputs from the main axes have long-term environmental sustainability. CABEIs Mission, as expressed in its Constitutive Agreement, establishes that the Bank will have for an objective to promote the economic integration and the balanced economic and social development of the founding countries. Additionally, the vision of CABEI is: To be a

strategic partner for improving the quality of life of Central Americans through the sustainable development of the land and its resources. The Institutional Strategy 2010-2014 establishes six focus areas so that CABEI resources granted through credit approvals, programs, and technical cooperation will have a direct impact on the objectives embodied in the strategic axes. The of Energy Infrastructure, Productive Infrastructure, and Social Infrastructure sectors correspond to three of the principal focus areas found within the strategy, which represent jointly 87% of total approvals by CABEI in 2012, which grew to USD$1.5201 billion. It is important to highlight that the initiatives framed within the sectors of productive, energy, and social infrastructure have a direct impact on the competitiveness, integration, and social development of the Central American region. In its more than 50 years, CABEI has approved more than USD$4.967 billion for the focus area of Productive Infrastructure, a figure that represents 27% of total approvals in the Banks history. Among the initiatives of greatest impact in the productive infrastructure sector at the regional level in which CABEI is participating are: The Rehabilitation and Expansion of 240 Kilometers of Route CA-2, West and East in Guatemala, that is part of the pacific corridor in

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the International Network of Highways (RICAM) and that along its course will benefit more than 2.4 million of the countrys residents; the Construction of the Logistics Corridor Villa de San Antonio Goascorn, Sections I, II and III in the Republic of Honduras, which is part of an inter-oceanic corridor in the RICAM to join the ports of La Unin in El Salvador with Puerto Corts in Honduras, benefitting more than 500,000 residents in its zone of influence; the IV and V Project of Highway Rehabilitation and Maintenance of the Republic of Nicaragua, using intensive labor, according to the method of the World Banks Concrete Block Road Program (MCA), creating more than 1,762 jobs at the local level and regionally benefitting more than 340,000 residents in more than 36 marginal communities; among others. With the goal of continuing to drive investment to productive infrastructure, CABEI has a sector support strategy with two strategic guidelines: i) To design, develop, and implement financial solutions that incentivize the development of the Regions infrastructure; and ii) To incentivize, in coordination with other stakeholders, the development of a favorable investment climate to invest in the development of infrastructure in the Region. Every one of the guidelines has a group of programs that include financial solutions for the public sector as well as the private sector, promoting a favorable business climate to attract investment from both sectors. Regarding the energy sector, since its founding, CABEI has approved more than USD$3.560 billion in energy infrastructure investment projects, a figure that represents 20% of total approvals by the Bank. Of the total financial resources directed toward the focus area of energy, around 81% has been destined to electricity generation projects, and the remaining 19% of resources were oriented toward the financing of rural electrification projects, transmission lines, electrical substations and distribution networks that have contributed to the integration and

sustainable development of Central American countries. It is important to highlight that of funds awarded for energy generation projects, 79% has been destined toward the development of generation projects with renewable resources, contributing to the creation of more than 8,000 jobs, generating savings in the importation of about 20 million oil barrels, and contributing to the reduction of more than 30 million tons of CO2 in the region. Recently, CABEI approved the Strategy for supporting the Central American energy sector, created with the general objective of Providing financial solutions to promote energy efficiency, driving the development of renewable energy sources and reducing dependency on nonrenewable energy sources in Central America. In this context, CABEI has participated in the funding of the energy infrastructure projects of greatest reach in the region, among which stand out the Central American Electrical Interconnection System (SIEPAC); the Hydroelectric project Reventazn and the Geothermal Plant Las Pailas in Costa Rica; the Wind Farms of Cerro de Hula and Amayo in Honduras and Nicaragua, respectively; the Hydroelectric project Xacbal in Guatemala; the expansion of the Hydroelectric Plant 5 de Noviembre in El Salvador; among others. On the other hand, as part of the infrastructure sector, the Banks focus are in the human development and social infrastructure sector. In this sense, CABEI has continued to support this area through the implementation of projects in healthcare, education, public housing, water and sanitation, and citizen security. According to approvals projections for the year 2013, 34% - that is, more than USD$675 million will be destined to these areas. Strong support is expected this year for the strengthening of the healthcare networks of Guatemala, Nicaragua, Costa Rica, and Panama, approving about USD$470 million to improve, expand, and build hospitals and

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healthcare centers. In the education sector, the Government of Honduras will receive support with a school infrastructure improvement program, an investment of USD$30 million, to benefit more than 400 educational centers with preschool, elementary, and secondary education. In the water and sanitation sector, approvals of up to USD$168 million are intended in 2013 for projects seeking to improve water quality, increase coverage, and improve energy efficiency in countries like El Salvador and Costa Rica. Finally, CABEI has faced strong challenges in providing access to funding for public housing and urbanism; nevertheless, since the end of the previous decade until now more than USD$180 million has been geared towards the improvement, expansion, and construction of public housing, benefitting more than 21,300 families throughout the Central American region.

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EXPERIENCES
SHARED BY

MEMBER COUNTRIES
Progress in the 10 General Competitiveness Principles
The following section contains more than sixty experiences shared by the member countries of the RIAC and provided by their public, private and public-private institutions responsible for promoting the competitiveness agenda of each country. The experiences are projects and initiatives that have been undertaken or are being undertaken by each country to become more innovative, productive and competitive. The experiences included in this section are related to the 10 General Competitiveness Principles, and in particular to the main theme of the VII Americas Competitiveness Forum, principle number five referring to the development of a modern and efficient infrastructure within and among countries. The experiences are grouped into five subsections: (i) Infrastructure; (ii) SMEs, Innovation and Entrepreneurship; (iii) Development of Human Capital; (iv) Regulatory Framework, Business Climate and Trade; (v) Energy. The shared experiences represent collaboration opportunities for countries, and include what each institution is willing to offer and what it requires from its counterparts in other countries to enrich and/ or replicate some initiative. It is worth noting that this section contains a summary of the experiences. The complete and original information shared by the institutions is available at www.riacreport.org/2013, including the specific contact person inside each institution that can provide further details, if necessary.

RIAC

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INFRASTRUCTURE

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Inclusion of Urban Transport through Aerial Cable


MetroCable Project Improves Quality of Life for City Residents Country: Colombia
Experience: Inclusion of Urban Transport through Air Cable Institution: Valle de Aburr Mass Transport Enterprise Lmtd Metro of Medellin Lmtd Date: 2006 present Webpage: www.metrodemedellin.gov.co - The MetroCable Project is a passenger transport system by air cable that connects the outlying areas of the city of Medellin with the Metro system. - MetroCable makes it possible to reach neighborhoods located in the mountains of Medellin, reduces transportation costs by operating on an integrated fare with the Subway and bus system; offers enhanced security and institutional presence, time-saving and environmental benefits. - This experience has improved the quality of life for residents and become an economic booster for the citys integral development, resulting in public and private sector investments in complementary infrastructure in key aspects such as health, education, recreation and public spaces. - Savings for MetroCable users have reached 10 million dollars and its construction has generated 604 direct jobs and 1,450 indirect jobs. In addition, homicide rates in Medellins communes 1 and 2 have decreased by 60%. - There are currently three cable lines and two more under construction that will be integrated into the streetcar system. Collaboration Opportunities Supply: Visits by experts from other countries to Medellin make presentations at events and conferences, technical assistance according to the available human and financial resources, consulting services. Demand: Similar experiences in other countries and innovative strategies to promote social transformation from a city transport network.

Industrial Infrastructure in the City of Rochelle, Illinois


Industrial Infrastructure Supports Business Development Country: United States
Experience: Industrial Infrastructure in the City of Rochelle, Illinois Country: United States Institution: Greater Rochelle Economic Development Corporation/City of Rochelle Date: 2007 - present Webpage: www.cityofrochelle.net - As the manufacturing sector in the region of the City of Rochelle lost thousands of jobs a year, the Greater Rochelle Economic Development Corporation (GREDCO) and the City of Rochelle saw an opportunity to reinvigorate the manufacturing sector by building infrastructure to support 21st-century industries. - The objective is to build infrastructure that supports the development of businesses related to: manufacturing, technology, renewable energy, logistics, agriculture and food packaging/processing. - Through the design and construction of the local rail and road systems, the City provides superior access to multiple transit opportunities that create north-south/east-west corridors to major markets from Canada to Mexico and coast to coast. - Since the initiative began, $1.5 billion has been invested in industrial capital and more than 2000 jobs created in this community of 9,754 people. Opportunities for collaboration Supply: To host visits from RIAC Members and share a short video titled, A Decade of Success. Demand: Knowledge on how private businesses and industries collaborate/interface with local, state, and federal units of government in other countries, and how other countries or units of government create economic incentives to attract and maintain businesses and industries.

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Development of a Modern, Efficient, and Well-Maintained Infrastructure


CARCIP Will Stimulate Growth through the Development of ICTs Country: Grenada
Experience: Development of a Modern, Efficient, and WellMaintained Infrastructure and Information Technology Institution: Ministry of Communications, Works, Physical Development, Public Utilities & ICT Date: 2007-2015 Webpage: www.carcip.gd/ - In response to the effects of the global financial crisis and a national employment rate approximating 30%, the Government of Grenada has undertaken the Caribbean Regional Communications Infrastructure Program (CARCIP) to stimulate growth through the development of Information Technology and Communications (ICTs). - The objective of CARCIP is to foster the development of a modern, efficient, and well-maintained infrastructure and to increase access to regional broadband networks and advance the development of an ICT-enabled services industry. - The program is expected to foster the development of the Grenada Information Technology Industry, contribute to improved government efficiency and transparency, develop a cadre of skilled and certified ICT professionals, and create employment opportunities in ICT. Opportunities for collaboration: Supply: The team of CARCIP in Grenada can be of great assistance when time has to come to share its experiences and lesssons learned with other countries. Demand: The ACP would benefit from learning about the experiences of other members on topic 6 (innovation and entrepreneurship position) as a driver of competitiveness and value creation.

Expansion of the Panama Canal


Expansion of Panama Canal Will Bring Greater Transportation Efficiency Country: Panama
Experience: Expansion of the Panama Canal Institution: Panama Canal Authority (PCA) Date: 2007- 2015 Webpage: https://micanaldepanama.com/ ampliacion-del-canal-de-panama/

- The Expansion Program of the Panama Canal involves the construction of a third set of canal locks with the capacity to move new vessels. - The expanded Panama Canal will double the tonnage capacity of the interoceanic waterway and will be a factor of change in maritime trade patterns, in the economies of the different routes, and the origins of the merchandise. - By making possible the use of larger vessels, the expanded route will be shorter and more efficient for ships with larger cargoes at lesser costs, which will result in a reduction of emissions and greater energy efficiency along the logistics chain.

- Currently the program is more than 60% complete and is expected to begin operating in 2015. - Estimated total investments are of B/.5,250 million. Opportunities for Collaboration Supply: Exchange of best practices and lessons learned in the process with members of the RIAC. Demand: The PCA would benefit from learning about the experiences of other members on principle 6 (innovative positioning and entrepreneurship) as a motor for competitiveness and value creation.

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Construction of the Metro in Panama


Metros Line 1 to Cover Demand and Growth of Metropolitan Area Country: Panama
Experience: Construction and Commission of the New Metro in Panama Institution: Country Date: 2010-2014 Webpage: www.elmetrodepanama.com

- In 2009, the Government of Panama defined as one of its primary goals the provision of a modern, efficient, safe, and environmentally friendly mass transportation system aligned with the needs of the Panamanian people. - With this objective in mind, the citys and metropolitan areas future Metro network was designed, including four Metro lines. - Currently the construction project is being carried out and Line 1 of the Metro is being inaugurated, with 92% progress, and the system is expected to start running in March 2014. Its total cost is USD $ 1.880 billion.

- The Metro system is integrated physically and in terms of rates with the rest of the collective public transportation system of the City of Panama. - The Panama Metros Master Network is expected to be operating in 2035, so its implementation will depend on future government administrations. Opportunities for Collaboration: Supply: Sharing of information on the experience, through work sessions or presentations on the project. Demand: Exchange of similar best practices in other member countries of the RIAC.

Urban Renovation, Curund Project


Urban Project Provides Housing, Lowers Crime and Creates Opportunities Country: Panama
Experience:Urban Renovation, Curund Project Institution: Ministry of Housing and Land Management Date: 2009 - 2013 Webpage: www.miviot.gob.pa

- The Curund Project consists of adequate housing complexes for a population of 5,000 people who were living in the Curund settlement devoid of minimal health standards and opportunities. - Beneficiaries are involved in the planning, construction and maintenance of this project; they receive training on construction as well as technical education that has allowed them to be included in other important projects in the country. - The project has provided technical training and incentives to return to school for staff members who had dropped out, and it has generated multiple community workshops and support for starting businesses.

- To date, the Curund Project has provided 1,008 apartments with basic services; 2,000 square meters of commercial areas for residents; 3,000 square meters of institutional areas; 12 sports fields, 6 playgrounds; an 80% reduction in crime; more than 800 new jobs, and new micro-entrepreneurs. Opportunities for Collaboration: Supply: Share information related to the experience of the staff involved with this work. Demand: Exchange of similar best practices in other RIAC member countries.

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Developing Infrastructure in Deprived Communities in East Port of Spain


Developing Infrastructure to Improve Quality of Life Country: Trinidad and Tobago
Experience: Developing Infrastructure in Deprived Communities in East Port of Spain Institution: East Port of Spain Development Company Limited Date: ongoing Webpage: www.eposdctt.com

- With the goal of improving the quality of life of residents of East Port of Spain, the East Port of Spain Development Company is leading an effort to develop and execute a spatial development strategy for building physical and social infrastructure. - The development of such infrastructure will facilitate the production of goods and services, the movement of products to markets, access to opportunities, services and employment, and poverty alleviation. - The objectives of the Companys Infrastructure Development Project include the creation of a network of sustainable communities that are safe and secure; an increase in economic activity, investment and jobs; and the establishment of a high-quality physical environment that ensures the health and wellbeing of residents.

- To date, 32 infrastructure projects have been executed (with an additional 12 projects ongoing and 10 projects to commence shortly) with the goal of improving the quality of life of residents and enhancing citizen security. - The Company has also begun installation of 13 nodes in nine locations to provide free wireless Internet access to residents of East Port of Spain and increase access to IT services. Opportunities for collaboration: Supply: Company personnel are available to share experiences. Demand: The Company will benefit from exchange of best practices and experiences in similar situations in other countries as well as knowledge of project implementation strategies in high-risk and high-crime communities.

Infrastructure Development in the Western Peninsula


Infrastructure Development to Improve Tourism Country: Trinidad and Tobago
Experience: Developing Infrastructure in Deprived Communities in East Port of Spain Institution: East Port of Spain Development Company Limited Date: ongoing Webpage: www.chagdev.com

- With the goal of making the most of the countrys tourism sector, the Government of Trinidad and Tobago has identified Chaguaramas, located on the countrys Western Peninsula, as one of the areas for infrastructure development. - Chaguaramas will serve as a new platform for tourism development, creating an enabling environment for the growth and expansion of industries, locally owned businesses, and entrepreneurial activity. - The objectives of this initiative are to diversify the economy towards more sustainable sectors that are more knowledgebased and have greater employment potential; to create an eco-tourism-centered, internationally recognized entertainment Centre and world-class recreational facility;

and to maintain the environmental integrity of the area while improving the aesthetics and physical facilities available for public use. - The transformation of Chaguaramas is not only an opportunity for improved infrastructure but also an opportunity to transform the lives of people living in nearby communities and in Trinidad and Tobago. Opportunities for collaboration: Supply: The staff working on the project can share knowledge and documents with other members of the RIAC. Demand: To get to know similar experiences.

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Tourism Benchmarking and Competitiveness Strategy


Helping the Tourism Industry Transition to a More Market-Driven Model
- Given the Government of St. Lucias soaring fiscal deficit and poor economic productivity, as well as recurring natural disasters and other constraints that affect the country, the sustainability of the tourism industry requires a transition from a heavily government-subsidized model to a more market-driven business model. - The importance of the tourism industry to the country its direct contribution to GDP in 2012 was 13% makes it especially necessary to address its shortcomings. - The objectives of the project are to build infrastructure capacity, develop and enhance products to stimulate demand, build and promote a 100% authentic St. Lucia, develop human resources capacity and quality throughout the value chain, and create a common vision for tourism development across all ministries and the public-private sector, among other things. - The market objective of the project is to increase arrivals and reach new records of 500,000 air arrivals, 76,000 yacht arrivals, 575,000 cruise arrivals, to a total of approximately 1,150,000 arrivals by 2022.

Country: St. Lucia


Experience: St. Lucia Tourism Benchmarking and Competitiveness Strategy Project Institution:Ministry of Finance, Economic Affairs, Planning and Social Security, in conjunction with the Ministry of Tourism, Heritage and the Creative Industries, with financing from the World Bank Date: 2012 present - So far, the project has identified the top five challenges facing tourism development in St. Lucia and has developed a strategy and action plan to address these challenges and thereby increase the competitiveness of the tourism industry. Opportunities for collaboration: Supply: This project can be replicated easily through dialogue, and it is desirable that it be replicated so that successes and failures can be shared, thereby strengthening the competitiveness of the industry within the region. Demand: If there are members who have undergone a similar process under similar circumstances, it would be interesting to know how they were able to overcome some of their major constraints.

Port Logistics Center, Caucedo


Port Logistics Center to Improve Productive Business Mechanisms Country: Dominican Republic
Experience: Port Logistics Center, Caucedo Institution: Caucedo Development Corporation Date: ongoing Webpage: www.caucedo.com

- The Logistics Center coordinates the land, air, and maritime services and also provides storage, packing or repackaging, labeling, inventory management, and regional distribution. - Its location in the Port of Caucedo positions it as one of three ports in the region of Central America and the Caribbean that allows it to provide direct services to and from Europe, the Far East, and North America. - The Port Logistics Center targets Caucedo, impacting 25,000 beneficiaries and intervening in about a thousand SMEs to improve their productive mechanisms through process innovation and quality.

- Still under construction, this initiative is expected to generate approximately a thousand jobs. Opportunities for collaboration: Supply: Provision of government and private sector technicians who provide information and assistance to countries interested in replicating the experience. Opportunity to make workshops, internships and meetings. Demand: Public policies for infrastructure development and trade facilitation.

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Georgia Tech Logistics Innovation and Research Center


Center to Improve Logistics and Trade in the Country Country: Panama
Experience: Georgia Tech Logistics Innovation & Research Center Institution: Secretariat of Science, Technology, and Innovation of Panama Date: 2010 - 2015 Webpage: www.gatech.pa/es/

- The objective of the Georgia Tech Logistics Innovation & Research Center is to improve the logistics and trade capabilities of Panama, to enable it to become the trade hub of the Americas. - The Centers main activities are associated with the development of databases, models and analytics to assess and improve the capabilities of Panamas logistics infrastructure and services. - The centers researchers have developed a unique virtual platform - www.gatech.pa/research/portal - that includes all information pertaining to the local logistics assets. The platform serves as a useful analytical tool that can easily calculate trade trends. - The Center has been recognized by the Inter-American Development Bank as the Mesoamerican Logistical

Observatory and as such is responsible for gathering and analyzing relevant supply chain data not only from Panama but also from the region. The Center staff has become a powerful source of data for logistics users and academic centers across the hemisphere. - Stakeholders have agreed to work together to address the issues that could disrupt or slow the movement of containers through the logistics network. Opportunities for collaboration: Supply: Share the Panama Centers experience. In addition, the local portal -http://www.gatech.pa/research/portal/- is open to any interested user. Demand: Best practices from other member countries (Chile, Colombia and the United States of America included) to incentivize innovation, funding and sustainability in logistics centers.

Direct Domestic Optical Fiber


Optical Fiber throughout the Country Will Improve Internet Services Country: Uruguay
Experience: Direct Domestic Optical Fiber Institution: National Telecommunications Administration (ANTEL) Date: 2013- present Webpage: www.antel.com.uy

- The objective of this initiative is to connect 100% of homes in Uruguay with Optical Fiber. - This project will give all homes access to highspeed Internet services, multimedia services, unified communications and online safety, among other things. - A Direct Fiber network or Red FTTH was chosen, so that the optical fiber reaches every home. Some 40 businesses outside Antel, with some 3,000 employees, participated in the installation.

- Data from August 2013 show the project has reached more than 535,000 homes, 21% of data in the country is brought by Optical Fiber, and services are available in more than 20 cities. By 2015 the goal is to cover 75% of homes in Uruguay. Opportunities for collaboration: Supply: Consultancy services, participation by Antel in other countries initiatives, and cooperation agreements among countries.

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National Competitiveness Council


National Competitiveness Council Will Improve Countrys Business Climate
- In response to Jamaicas fall in the Doing Business Report that resulted in poor investor confidence and a negative perception of doing business in the country, the Government of Jamaica established the NCC to advance policy advocacy, research, and public awareness of initiatives that create an enabling environment for the development of businesses in Jamaica. - The NCC, a public-private partnership chaired by the Minister of Industry, Investment and Commerce, is recognized as the most comprehensive forum to discuss national competitiveness issues. - The objectives of the NCC are to coordinate and drive cross-functional and multi-agency strategies that seek to address impediments to establishing and doing business in Jamaica; formulate the necessary measures leading to speedy processing of business and investment proposals; provide policy advice on steps towards an improved and competitive business climate; and communicate effectively with broader stakeholders and the general public regarding the implementation of initiatives that affect the business environment.

Country: Jamaica
Experience: National Competitiveness Council Institution: National Competitiveness Council (NCC)

Opportunities for collaboration: Supply: The NCC is willing to share experiences and methodology with countries and to lead a Competitiveness Business Climate Think Tank to deal with the indicators in the Doing Business Report. Demand: Experiences of RIAC countries, especially in the areas of accelerating legislative and policy reforms and harnessing resources to implement business climate reforms.

Creation of the Council for National Competitiveness and Productivity


NCPC Seeks to Fill Void in Public-Private Dialogue
- The National Competitiveness and Productivity Council (NCPC) was established to address the lack of formal opportunities for public-private dialogue in the country. The NCPC will serve as the main forum to discuss the countrys private sector development, competitiveness, and economic growth. - The Councils objectives are to promote awareness and understanding of the importance of competitiveness and productivity to the countrys economic wellbeing, provide advice to the Government on how best to promote productivity, growth and competitiveness, and assess specific competitiveness and productivity topics in greater detail, among other things. - The recently established Council has yet to hold its first meeting, and a Work Plan is currently being formulated.

Country: St. Lucia


Experience: Creation of the Council for National Competitiveness and Productivity (NCPC) Institution: Ministry of Finance, Economic Affairs, Planning and Social Security Date: 2013- present

Opportunities for collaboration: Supply: Information Sharing. Demand: Knowledge on the implementation objectives of competitiveness councils in other countries and sources of financing for key activities.

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Strengthening National Metrology Institutes in the Hemisphere


Strenghtening National Metrology Institutes in the Region
- The objective of this project is to strengthen the National Metrology Institutes (NMIs) of the OAS Member States through workshops, group training, individual training assignments, and measurement comparisons for the development of National Quality Infrastructures and a strong regional measurement infrastructure. - The project aims to harmonize measurements across the region; improve measurement capabilities in participating countries; identify areas for training and capacity building; and raise awareness on the importance of a measurement and standards infrastructure for economic development. - The activities carried out promote increased local investment, new metrology laws and services, greater international recognition and increased partnership and cooperation among institutions.

Country: United States


Experience: Strengthening National Metrology Institutes in the Hemisphere Institution: National Institute of Standards and Technology of the United States (NIST) Date: 2013-2016 - The results to date include more than 500 trainees in physical, chemical and legal metrology in the region; more than 25 training events and workshops and more than 10 awareness activities. Opportunities for collaboration: Supply: The network can provide assistance in technical areas as well as sharing information on raising awareness with government officials. Demand: Experience on how to communicate successful results locally, nationally and regionally.

Bicycle Sharing: An Option for Urban Mobility


The Bike Sharing Program Promotes Benefits for the Environment and Public Health Country: United States
Experience: Bicycle Sharing in the U.S. Institution: U.S. Department of Transportation Date: Ongoing Webpage: www.bicyclinginfo.org/promote/ bikeshareintheus.pdf

- Bike sharing is an innovative transportation program, ideal for short distance point-to-point trips providing users the ability to pick up a bicycle at any self-service bike station and return it to any other bike station. - Among other benefits, bike sharing can reduce the personal cost of urban transportation and offer environmental, social, economic, and public health benefits. - Bike sharing can help reduce traffic congestion, use of fossil fuels, pressures on motor vehicle parking supply, and increase use of transit and other singleoccupant alternatives.

Opportunities for collaboration: Supply: The twelve existing and planned U.S. bike share programs have a wealth of knowledge to share. Demand: To learn about similar initiatives in other countries.

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SMES, INNOVATION AND ENTREPRENEURSHIP

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Comprehensive Support for Entrepreneurship


Fostering Entrepreneurship to Consolidate Emerging Businesses Country: Guatemala
Experience: Comprehensive Support for Entrepreneurship Institution: Ministry of the Economy Date: 2013 - Present - The Integral Development Program for Entrepreneurship seeks to promote and strengthen entrepreneurship in Guatemala, in order to generate, accelerate and consolidate emerging businesses in the micro, small and medium enterprises sector. - Specific objectives include promoting and encouraging the entrepreneurial process in all its stages; developing a National Entrepreneurship Policy; creating a National Seed Capital Fund; coordinating the efforts of the public, private and academic sectors; and building alliances. - 91 people from 52 institutions attended the Workshop on Development of a National Entrepreneurship Policy, 48% of which were women. - The Training Workshops for consultants and for supporting entrepreneurs received 626 applications, of which 230 were evaluated and selected to continue on to the first phase. In the second phase, 105 enterprises were evaluated and selected. These enterprises received a two-and-a-half-day training to validate their product / service to potential customers. Opportunities for Collaboration Supply: Sharing information. Demand: It is important to develop a Regional Strategy to endow the Americas with a harmonized agenda and to promote a comprehensive vision of the entrepreneurial process in the region.

National Institute for Entrepreneurship


National Institute Promotes Rise of New Entrepreneurs in the Country Country: Mexico
Experience: National Institute for Entrepreneurship Institution: Secretariat of the Economy Date: 2013 - Present Webpage: www.inadem.gob.mx

- The National Institute for Entrepreneurship is an administrative body that assumes the attributes and faculties of the Under-secretariat for Small and Medium Enterprises of the Secretariat of the Economy, to bring comprehensive support to entrepreneurs. - The Institute has a broad base of productive and consolidated SMEs with the capacity for progress and growth. Information is provided on financing, marketing and quality; and exchange of knowledge and experiences between entrepreneurs is facilitated. - With the creation of the institute, there has been a redesign of mechanisms for evaluation, selection, participation, and project follow-up; incubators have been strengthened; the Enterprise Fund has been created, as well as the Support Network for Entrepreneurs, among other things.

- The budget of the 19 calls by the SME Fund has risen to 3.742 billion Mexican pesos. Opportunities for Collaboration Supply: Sharing of successful practices on new forms of evaluation and follow-up of projects, participation by federal entities on alignment of strategic projects and dialogue with the private, academic and public sectors on the creation of the Institute. Demand: Contact with institutional support organizations for small and medium enterprises in other countries.

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Start-Up Chile
Start-Up Chile: An Entrepreneurship Program of Global Renown Country: Chile
Experience: Start-Up Chile Institution: Production Development Corporation (CORFO), Ministry of the Economy Date: 2010 present Webpage: www.startupchile.org

- When Start-Up Chile began, the economic support consisted of providing a US$40-thousand grant and work visa to entrepreneurs who decided to go to Chile to develop their projects for 6 months. In time, this program has also facilitated mentoring networks, workshops and meet-ups that have benefitted more than 130 thousand persons. - By 2012, 400 projects had been sponsored and 3000 applications had been received. Currently, of 8000 applications received from 112 countries, 670 start-ups from 64 countries have been selected. The sponsored projects have leveraged 25 million dollars in investments.

- Start-Up Chile has been a source of inspiration for entrepreneurship programs in Greece, Spain and the United States, as well as Brazil and Jamaica. Opportunities for Collaboration Supply: A specialist can visit any country program to transfer knowledge and, in 2014, a tour can be coordinated with the RIAC for experts to learn more about the program. Demand: Information about successful ways to encourage sponsored entrepreneurs to make a social commitment.

Enterprise Development Center to Support MSMEs


Center Will Help Transformation of Ideas into Viable Businesses Country: Trinidad and Tobago
Experience: Enterprise Development Center to Support MSMEs Institution: Caribbean Industrial Research Institute (CARIRI) Date: 2013 present Webpage: www.cariri.com/

- With the goal of supporting the transition of ideas through to commercially viable businesses, the Caribbean Industrial Research Institute (CARIRI) is completing its Centre for Enterprise Development (CED). - CED seeks to support entrepreneurs with innovative ideas to take those ideas to a point where investors would be interested and to provide mentorship and networking support that would lead to viable businesses. - The physical infrastructure was built and equipped in less than a year, and CED has had its first intake of four MSME businesses that offer considerable growth prospects.

Opportunities for Collaboration Supply: To visit and observe the facility. Demand: To visit and observe other facilities in the Latin American and Caribbean region.

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Driving the National Innovation and Competitiveness Agenda through the Idea 2 Innovation (i2i) Program
Creative Projects Receive Financial Support from i2i Competition Country: Trinidad and Tobago
Experience: Driving the National Innovation and Competitiveness Agenda through the Idea 2 Innovation Program (i2i) Institution: Council for Competitiveness and Innovation Date: 2012 - Present Webpage: www.i2itt.com - With the goal of becoming a vehicle for the development of ideas with commercial potential, the i2i Competition was launched in 2012. - Approximately 400 submissions were received over an eight-week period, resulting in grants totaling TT$4.7 million awarded to 50 projects submitted by individuals, teams, and companies. - Winning innovators/inventors received funding in the range of $75,000 to $200,000. - The key components of the i2i program are: a funding source allocated to early-stage, risky ventures; access to suitable persons who can evaluate the submissions; and access to industry professionals who can provide advice and mentorship to persons progressing through their work plans. - The application phase of the 2013 i2i Competition ran from May 29 to July 12, 2013. 53 successful projects had been confirmed as of September 13, 2013.

BioGenerator - Comprehensive System for Bioscience Enterprise Creation in St. Louis


BioGenerator Helps St. Louis Transition to a 21st-Century Economy Country: United States
Experience: BioGenerator, Comprehensive System for Bioscience Enterprise Institution: BioGenerator / U.S. Department of Commerce Date: ongoing Webpage: www.biogenerator.org

- BioGenerator was started in St. Louis to capitalize on local scientific discoveries and create lasting economic growth in a city that, like many regions in the U.S., is experiencing a difficult transition from a manufacturing-based economy to an innovation-based community. - The general objectives are to increase economic activity in the St. Louis region through the creation of new bioscience companies that will attract wealth, create jobs, and grow the regions economy. - The BioGenerator programs afforded an avenue for many talented scientists and business people to become entrepreneurs and start their own companies.

- Among other achievements, it has established and nurtured 38 bioscience startups, with USD$5 million in non-profit investment having attracted USD$132 million in additional funding. - BioGenerator Accelerator Labs (BAL) companies (very early stage) have secured more than USD$10 million and more than 50 clients from 15 countries. Almost all of these companies represent new economic activity that would not otherwise exist. Opportunities for Collaboration Supply: To host expert visits, conduct technical tours of its pre-incubator facility for entrepreneurs, investors, and peer organizations. Demand: Knowledge on how to attract additional investors into startup companies and explore potential contracts with companies or institutions in other countries.

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Rutgers Food Innovation Center


Innovation Center Enhances New Jersey Food and Agricultural Sectors Country: United States
Experience: Rutgers Food Innovation Center Institution: Rutgers, the State University of New Jersey (Public) Date: 2006 - 2009 Webpage: foodinnovation.rutgers.edu

- The Rutgers Food Innovation Center was created in response to the need for value-added enterprises to create viability in New Jerseys food and agriculture industry, as well as in response to key business needs critical to create jobs in the region and a strong food industry sector in the state. - The Center provides business and technological expertise to the food and agricultural sectors in New Jersey and throughout the mid-Atlantic region. - The Center has assisted more than 1500 companies located in all 21 counties of the state. This has resulted in 150 new jobs created, 12 client graduates, and more than 40 products successfully commercialized.

- An unexpected achievement was the level at which the Center was able to fully engage the community, including the development of a strategic plan with quantifiable objectives to achieve the program mission. Opportunities for Collaboration Supply: To continue providing information to countries interested in duplicating its model. Demand: Learn more about the innovative mechanisms that economic development programs in developing countries have used to overcome obstacles in development, implementation and funding of programs.

Manufacturing Solutions Center, North Carolina


MSC Helps Create and Retain Manufacturing Jobs in North Carolina Country: United States
Experience: The Manufacturing Solutions Center, North Carolina Institution: The Catawba Valley Community College Manufacturing Solutions Center Date: 2001 - present Webpage: www.manufacturingsolutionscenter.org

- Since its creation 23 years ago, the Manufacturing Solutions Center (MSC) has always been about doing whatever it takes to preserve and create jobs. - MSC is a specialized research and consulting organization that has helped more than 300 U.S. manufacturers develop new products or improve existing ones in a wide variety of industries. - From 2001 thru 2011, the program registered increased sales of more than USD$52 million, retained sales of USD$64 million, had a total economic impact of more than USD$140 million, and retained and added more than 1500 jobs, among other results.

- The public perception of manufacturing has changed, from being considered a low-skilled, dead-end job to one that is part of a high-paying sector that requires advanced lifelong learning. Opportunities for Collaboration Supply: We are willing to share our experiences, both positive and negative, with RIAC members, and to give tours or meet via videoconference or Skype to discuss how we can work together. Demand: We would be very interested in exploring export opportunities to RIAC countries for manufacturers and entrepreneurs we are working with.

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Center for Entrepreneurship and Technology Incubator, Northern Arizona


Center Promotes Commercialization of Local Technologies Country: United States
Experience: Center for Entrepreneurship and Technology, Northern Arizona Institution: Northern Arizona Center for Entrepreneurship and Technology Incubator Building Date: 2003- ongoing Webpage: www.nacet.org - In one of Arizonas most economically distressed areas, Northern Arizona University and the City of Flagstaff identified the need for facilities designed to accommodate the commercialization of technologies being developed on campus and in the region. - The Northern Arizona Center for Entrepreneurship and Technology Incubator (NACET) was built to foster the commercialization of technologies developed in Northern Arizona University and the region. - Northern Arizona University provides mentoring services and technical support to incubator clients. - Since its completion in 2008, NACET has come to house 11 companies and is providing assistance to an additional six companies off-site. By the end of 2011, USD$110 million in private sector investment had been generated and 320 new jobs created.

Clemson University International Center for Automotive Research


Fostering a Knowledge Economy that Benefits Local Companies Country: United States
Experience: Clemson University International Center for Automotive Research (CU-ICAR Institution: Clemson University (Public) Date: 2008 - 2013 Webpage: www.cuicar.com

- The objectives of the Center for Automotive Research are to provide uniquely qualified postgraduate students for employment; to contribute to economic development through a knowledge-based economy; and to provide cutting-edge research to the automotive industry. - CU-ICAR alumni are gainfully employed in automotive companies within South Carolina and are no longer leaving the state in high numbers in search of wellpaying, knowledge-based employment. - As of 2011, CU-ICAR has generated nearly USD$250 million in investments, with another USD$500 million in development, and has announced more than 2,300 new high-wage jobs.

- CU-ICAR has also become a gathering place for the local engineering and business community to hold conferences and organize gatherings. Opportunities for Collaboration Supply: Share information virtually and via personal contact. Demand: Knowledge of other public/private models that have been successful, particularly where coupled with academic programs.

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Science and Technology Program


Program Seeks to Strengthen Countrys Research and Development Capabilities
- Seeking to boost the countrys competitiveness through research, technology, and innovation, the Government of Peru and the Inter-American Development Bank (IDB) signed a loan agreement to finance the Program of Science and Technology (FINCyT). - The objective of the program was to improve the countrys competitiveness levels through capacity building for research and development as well as technological innovation. - 117 technological innovation projects were funded as well as 77 research projects on technological development from research centers and universities. Additionally 110 scholarships for postgraduate study both nationally and internationally were awarded. - The program has contributed to a change of attitude in the business community towards investment in technological innovation (from an average of 10 to 20 businesses competing four years ago, to the present 500 to 600 businesses competing each cycle.) - Currently the program is in its second stage with three technical components: promotion of the market for technological innovation, the development of research skills, development and innovation, and improvement of complementary services in the market for innovation. Opportunities for Collaboration Supply: The FINCyT is available to make a presentation or series of presentations on project evaluation methodologies and institutional arrangements that permit good performance. This can be done through videoconferences or workshops. Demand:The experience of other countries in the RIAC can be useful to strengthen or complement the efforts made by FINCyT.

Country: Peru
Experience: Science and Technology Program (FINCyT) Institution: National Competitiveness Council (NCC) Date: 2007- 2013 Webpage: www.fincyt.gob.pe

Development Centers for Micro and Small Enterprises


Decentralization of Business Services Will Improve Support to MSEs Country: El Salvador
Experience: Center for the Support of Micro and Small Enterprises Institution: Ministry of the Economy Date: 2010 - present Webpage: www.conamype.gob.sv - In two years of operation, the centers have provided services to 3,354 companies and group trainings have been held. - Currently we are working on a virtual platform to promote exports by the MSEs served by the centers. Opportunities for Collaboration Supply: Sharing institutional experience through bilateral technical cooperation programs and nonfinancial resources: exchange of experts, information, documentation, and best practices. Demand: Experiences from countries that have decentralized support services to MSEs.

- The Micro and Small Enterprise Development Centers were created to provide more effective support to Micro and Small Enterprises (MSEs) and decentralize business services provided by the National Commission on MSEs. - The key to the model is the public-private-academia partnership that provides expertise, resources and knowledge to the services offered to MSEs. - This model has been adapted with the support of the University of Texas at San Antonio based on the experience of the United States Small Business Development Centers. Other countries such as Dominican Republic, Costa Rica, Panama, Guatemala and Honduras are also beginning the process of replicating this model.

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CrecES MIPYMEs
CrecES Program Seeks to Increase Investment and Growth of MSMEs
- CrecES MIPYMES is a program that supports micro, small and medium enterprises (MSMEs) that wish to invest. It provides technical assistance, advice on quality issues, assistance in preparing credit proposals to access public funding and support in the development of their projects. - Preliminary results achieved to date show that it has generated about $2 million in MINEC and CONAMYPE investments, sales have increased by USD 3 million and 100 jobs have been created. - Its implementation has shown the importance of creating a solid coordination system among the government offices involved at the national and international levels, as well as having entrepreneurs who are willing to engage in the productive programs.

Country: El Salvador
Experience: CrecES MIPYMES Institution: Ministry of the Economy Date: 2013 - present Webpage: www.minec.gob.sv

Opportunities for Collaboration Supply: Share information virtually and via personal contact. Demand: Good practices for obtaining support for productive investments at sectorial and territorial levels to enhance the Programs capabilities.

Ms Pymes
SMEs Program Strengthens Competitiveness and Innovation among Businesses Country: Dominican Republic
Experience: Ms PYMES Institution: National Competitiveness Council (CNC-RD) Date: Ongoing Webpage: www.maspymes.com.do

- Ms PYMES is a program aimed at the manufacturing, tourism, and agribusiness sectors that seeks to impact 25,000 beneficiaries, of which 15,000 will participate in training, and 10,000 in training related to technical assistance. - The program also supports active and inactive exporter SMEs, as well as non-exporters, through the development of one hundred plans for exportation, twenty quality certifications, and one hundred training sessions to SME entrepreneurs. - To date we have trained 3,365 people, 274 SMEs have received different technical support services, and another 195 SMEs are in the process of joining the program.

Opportunities for Collaboration Supply: Government and private sector technicians to provide information and assistance to countries interested in replicating the experience. Opportunity to hold workshops, internships, and meetings. Demand: Best practices on public policies for MSME sector development on issues of innovation, exports, quality and productivity.

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Fund for Small and Medium-Sized Enterprises


Fund Will Contribute to Strengthen Capacity and Production of SMEs Country: Suriname
Experience: Fund for Small and Medium-Size Businesses Institution: Ministry of Finance and the Central Bank of Suriname Date: 2013 - present Webpage: www.vcbbank.sr/kmo-fonds

- With the goal of helping SMEs improve production, the Ministry of Finance established the SME Fund.

- The objectives of this program are to ease access to finance for SMEs to help expand their operation; strengthen the earning capacity, production efficiency, and professionalism of SMEs; and diversify the production of SMEs.

Business Ethics in Export Sectors Relevant to APEC SMEs


Business Ethics Project Combats Corruption in SMEs Sectors Country: United States
Experience: Business Ethics in Export Sectors Relevant to APEC Small and Medium-Sized Enterprises Institution: International Trade Administration, U.S. Department of Commerce Date: 2000 present Webpage: www.apec.org - APEC governments were highly supportive of ethics work and there were many requests from local associations to participate in the code writing workshops. Opportunities for Collaboration Supply: Sharing of information by means of videoconference in order to expand initial ideas proposed by the project. Demand: Information sharing, workshops, and/or a videoconference would be most suitable for expanding the initial knowledge on this project.

- The goal of this initiative is to eliminate the challenges and high costs associated with corruption through clear and concise codes of ethics specific to the three industry sectors to facilitate the movement of goods and services across borders throughout the APEC region. - The objectives of the business ethics work stream are to create an open and transparent commercial environment, build ethics compliance capacity in small and mediumsized firms within APEC economies, and geometrically expand the number of ethics compliance trainers through a train-the-trainer program, among other things. - The drafting workshops have been replicated three times with success. The APEC model can be used for any sector and builds on public-private partnerships.

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Telesur Multimedia Innovation Lab


Innovation Lab Spurs Development of Multimedia Applications Country: Suriname
Experience: Laboratory of Multimedia Innovation, TELESUR Institution: Telecommunication Company Suriname (TELESUR) Date: 2011 - present Webpage: www.tmil.sr

- Telesur Multimedia Innovation Laboratory (TMIL) developed out of an internal innovation competition held within TELESUR for its employees. - The objective of this initiative is to serve as a creative incubator, knowledge center and laboratory for commercial development of applications. - The Lab functions on a national level to encourage and facilitate the development of creative ideas into commercially attractive ICT and multimedia applications. - A student from this program recently earned First Place in the CANTO/Ericsson 3rd Annual i-Create e-Content Competition (2013).

Opportunities for Collaboration Supply:The following videos: http://www.youtube.com/user/TelesurMIL Demand: How to structure competent, innovative, and sustainable management for the business incubator, as well as what mechanisms are needed to stimulate entrepreneurship.

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DEVELOPMENT OF HUMAN CAPITAL

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International Creativity Park


Creativity Parks an Opportunity to Identify Young Talent Country: Colombia
Experience: International Creativity Park Date: 2009-present Webpage: www.parkofcreativity.org

- The objectives of the International Creativity Park are to train young scientists-inventors, create inventions, patent them and create companies based on scientific/ technological inventions. - The process is as follows: international camps are conducted with young inventors where 15 local youth are selected to work on their invention projects for the next three years. During that time, these young people work in the creativity park accompanied by mentors. After three years, the creativity park is expected to be self-sustaining. - Creativity Parks in Colombia have achieved 13 inventions in four years, and most of these have applied for patents, five have been licensed by companies, and others are in the process of licensing.

- Some of the inventions include new DNA amplification technology, water treatment with natural compounds, and production of natural antioxidants, among others. - The program has developed a practical system to share its expertise through lectures and creative workshops. Opportunities for Collaboration: Supply: Two-day Creativity Workshops and conferences by Dr. Ral Cuero and young inventors.

Supporting Inclusive Businesses in Value Chain Competitiveness


Improving the Role of Inclusive Businesses in MSMEs Country: United States
Experience: Supporting Inclusive Businesses in Value Chain Competitiveness Institution: Action for Enterprise Webpage: www.actionforenterprise.org

- Action for Enterprise (AFE) designs and implements value chain/market development programs to promote sustainable market-based solutions. It also provides organizations with staff training, program design, advisory services and mentorship programs to help them transition from traditional development approaches to marketoriented methodologies. - The objective of AFE is to collaborate with Inclusive Businesses (IBs) to help ensure the sustainability of the programs impact. - AFE has entered into collaborative agreements with more than 100 IBs in the agribusiness, crafts, and tourism value chains worldwide, resulting in positive benefits for more than 1,000,000 MSMEs.

- In addition to collaborating and supporting the initiatives of individual companies, AFE programs also support a variety of cross-company activities that bring IBs together for capacity building and lateral learning events. - AFE has successfully applied its methodology to value chains in more than 30 countries in a wide range of political environments. Opportunities for collaboration Supply: Information sharing. Demand: Others experiences in the promotion of inclusive businesses in the region.

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Education Enhancement through Information Technology


Strengthening Primary Education and Libraries through ICTs
- The program seeks to introduce Information and Communications Technology (ICT) into the learning environment of primary school classrooms and libraries. - It helps to build students information technology (IT) skills; support teaching and learning while reaching out to surrounding communities, and build IT capacity in teachers and librarians. -The program aims to build the base for the economic, social and cultural sustainable development in rural communities in St. Lucia, with TICs implementation and integration. - An objective of the program is to retrofit ICT spaces in selected primary schools and communities with hardware and software equipment. - Among the programs achievements so far has been the procurement of a mobile computer classroom, the training of school principals and teachers on the use of ICTs in schools, and the delivery of supplies for the enhancement of community spaces, including all public libraries and the Boys Training Centre (BTC).

Pas: St. Lucia


Experience: Education Enhancement through Information Technology Institution:Ministry of Education, Human Resource Development & Labor Date: 2011 2013

Opportunities for collaboration Supply: Training workshops and site visits. Demand: To learn about other similar experiences in member countries of the RIAC.

Basic Education Enhancement Project


B.E.E.P. Helps Improve Education in Primary and Secondary Schools
- With the purpose of improving the quality of education in St. Lucia and enhancing the learning environment of its schools, this project is making it possible for nine primary schools and three secondary schools in the country to undergo major rehabilitation, and for teachers, principals and others to enhance their capabilities through training. - The project seeks to improve the quality, efficiency, and effectiveness of the education sector through institutional strengthening and capacity building. - Approximately 1290 educators have completed training in at least six disciplines. - Four schools had been practically completed by August 30, 2013, and are currently in full operation.

Country: St. Lucia


Experience: Basic Education Enhancement Project (B.E.E.P.) Institution: Ministry of Education, Human Resource Development & Labor Date: 2010 2014

Opportunities for collaboration Supply: The Project Management Team can share best practices and lessons learned from implementing the project in St. Lucia through training workshops and site visits. Demand: To learn from other similar experiences.

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Skills for Inclusive Growth Project


Skills for Inclusive Growth Project Helps Fight Youth Unemployment
- With the goal of reducing unemployment and increasing career mobility among young people in St. Lucia, the government launched a project to train youth in the skills that will enable them to participate in the opportunities of a globalizing and growing economy. - The objectives of this project are to finance private sectordriven training for unemployed youth and develop an improved policy framework for delivering training. - A total of 1005 participants have been enrolled in the OECS Skills for Inclusive Growth training program and forty-two percent of enrolled youth are employed 15 months after the start of training. - The experience of the public and private sectors working to improve the quality of the labor force can be replicated in other countries. This is an OECS-wide project for which St. Lucia is a pilot country.

Country: St. Lucia


Experience: Supporting Inclusive Businesses in Value Chain Competitiveness Institution: Action for Enterprise Date: 2007 2013

Opportunities for collaboration Supply: Training workshops and site visits. Demand: The actual implementation of objectives of other countries competitiveness councils; sources of financing for key activities.

Infoplazas
Infoplazas Help Reduce Illiteracy and the Digital Gap in the Country Country: Panama
Experience: Infoplazas Institution: Secretariat for Science, Technology and Innovation (SENACYT) Date: 1998 - present Webpage: www.senacyt.gob.pa www.facebook.com/infoplazasenacyt http://dcastil80.wix.com/infoplazakids#

- The 285 Infoplazas are free community centers with Internet access, located throughout the country, especially in remote areas. - Infloplazas, present in all provinces and regions of the country, benefit people who dont have the opportunity to access technologies, and allow them to carry out online distance studies, find better job options, and promote their own businesses. - The project has benefitted 2,147,920 people and an average of 500 people a month visit each Infoplaza.

- The project includes a Mobile Infoplaza, which tours the country, bringing technology and training to communities. Opportunities for collaboration Supply: SENACYT is willing to share information regarding its projects, as well as conduct technical tours and workshops. Demand: Exchange of best practices on methodologies for mass training and innovative ideas to turn it into a fully self-sustainable project.

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REGULATORY FRAMEWORK, BUSINESS CLIMATE AND TRADE

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Business and Investment Climate


Improving the Business Climate: A Key to Increased Competitiveness
- Taking into account the results of the World Banks Doing Business report, the government of El Salvador decided to promote a plan to improve the countrys business climate, facilitate business operations and make Salvadoran firms more competitive internationally. - The Doing Business Improvement Plan has received technical assistance from the World Banks IFC and seeks to improve four specific indicators: starting a business, construction procedures, insolvency, and protection of investors. - Good practices include building interinstitutional teams, conducting research on successful international research projects in the field and working in coordination with investors to identify technical needs. - A set of laws and reforms that seek to invigorate the productive sectors have been prepared and presented.

Country: El Salvador
Experience: Business and Investment Climate Institution: Ministry of the Economy Date: 2012 - present Webpage: www.minec.gob.sv

Opportunities for Collaboration: Supply: Sharing institutional experiences through bilateral technical cooperation programs and nonfinancial resources: exchange of experts, information, documentation, best practices, etc. Demand: Experiences (methodologies, strategies, work plans) from countries that have managed to improve their Doing Business Indicators.

Support for Regulatory Improvement Projects


Regulatory Improvement Projects Seek to Increase Competitiveness
- The initiative for regulatory improvement seeks to increase productivity in the Mexican economy through the institutionalization of public policy in the 32 federal entities, and their municipalities, through the development of various tools and projects. - Support is given for projects such as reduction in transactions and services; strengthening and modernization of the state registry of transactions and services; and rapid opening systems for businesses, among others. - The Technical Committee on Regulatory Improvement brings financial support and offers follow-up and advice to different entities that participate in the presentation of projects and/or their implementation stage. - The implementation of tools and projects makes it possible to create institutional capacity, boost regulatory frameworks to consolidate regulatory improvements in the long term, and build exchange mechanisms between different government agencies. - To date, 50 projects have been approved, 48 of them presented by 23 federal entities that represent close to 161 million Mexican pesos from joint investments.

Country: Mexico
Experience: Obtaining Support for Regulatory Improvement Projects Institution: Secretariat of the Economy Date: 2012 - 2013 Webpage: www.agendamultinivel.economia.gob.mx

Opportunities for Collaboration: Supply: Information sharing. Demand: Best practices from RIAC members on issues regarding the implementation of a single-stop window, multi-level collaboration, regulatory improvement, and cooperation at the regional level.

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Fund of Funds
Fund of Funds Increases Competitiveness by Promoting International Investment Country: Mexico
Experience: Fund of Funds Institutions: Ministry of Economy Date: 2010 - 2020 Webpage: http://www.fondodefondos.com.mx - The Fund of Funds Mexico Ventures I is a fund that invests in other venture capital funds with an international focus, which achieves attractive risk-adjusted returns and a significant economic impact, implementing investment policies correctly. - In 2013, the achievements of Mexico Ventures I included the approval of investment in eight national and international venture capital funds, of which 4 are firsttime venture capital funds. - Another significant result is that investment was achieved in foreign funds that are committed to invest in Mexican companies looking to bring Mexican talent globally. - Currently, Mexico Ventures I funds are committed to 71% and remaining investment is being evaluated in other funds (U.S. $8M) and companies through coinvestments (U.S. $11M).

Opportunities for collaboration: Supply: Advice and consultancy on related issues, participation in conferences, exhibitions, work meetings, having en employee from a RIAC member country work at Mexico Ventures for a predetermined amount of time. Demand: Knowing public sector involvement in developing the entrepreneurial ecosystem, initiatives that will drive the integration of angel investor networks; best practices linking supply generation (venture capital investment) and demand (portfolio viable projects), information on the members of the ecosystem in other countries.

MiEmpresa: Online Services and Transactions


MiEmpresa Positions Itself as Best Practice in Reducing Business Transactions Country: El Salvador
Experience: MiEmpresa Online Services and Transactions Institution: Ministry of the Economy Date: 2011 present Webpage: www.miempresa.gob.sv -The web platform www.miempresa.gob.sv facilitates business procedures to start, operate and close a business. It also offers a complete catalogue of public and private programs and services available to MSMEs to access credit, find business opportunities with the government, receive training and marketing support. -During the first stage of the system, the platform received 6,394 visits / consultations and 31 procedures were performed to formalize businesses. During the second stage, which includes procedures for creating limited liability corporations there have been to date 34,146 consultations on the platform, and 244 procedures have been performed to formalize natural persons and 32 procedures to formalize legal persons. -This experience is being replicated in Guatemala with the support of UNCTAD - www.minegocio.gob.gt. Opportunities for Collaboration Supply: Sharing the experience with other countries. Demand: Processes for simplifying procedures, virtual windows for starting, operating and closing a business, and Communications and dissemination programs.

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Rapid Business Openings Portal


Rapid Portal Helps Improve Countrys Business Climate Country: Mexico
Experience: Rapid Business Openings Portal Institution: Secretariat of the Economy Date: 2009 - present Webpage: www.tuempresa.gob.mx

- Tuempresa.gob.mx is an Internet portal that facilitates 13 transactions related to the opening and setting in motion of businesses created in Mexico. It improves reliability, quality and transparency between entrepreneurs and the Federal Government. - A novelty of the system is that it already allows for updates in the use of names and registered names through Advanced Electronic Signature (FIEL), in accordance with best international practices. - The portal has lowered administrative costs related to the creation and setup of businesses, with savings to businesses established with this tool estimated at more than 122 million Mexican pesos.

- During the first 10 months, more than 400,000 requests have been registered, compared to 140,000 requests registered the previous year. Opportunities for Collaboration: Supply: Videoconferences, work tours, and documents for sharing. Demand: Best practices on topics related to the promotion of competitiveness and public-private partnerships, institutional and regulatory framework, innovation and entrepreneurship, and trade and integration, mainly focused on SMEs.

One-stop Window for Construction Projects


One-Stop Window Reduces Time and Costs of Obtaining Construction License
- The One-Stop Construction service is based on interagency partnerships that enable a faster and more efficient management of the requirements and procedures to obtain building permits (Ministry of the Environment and Natural Resources and the General Land Ownership Registry), reducing costs, time, and the number of visits to other agencies. - Since its implementation the cost and time for the following procedures have been reduced: Ministry of the Environment and Natural Resources (from 30 days to 24 hours and from Q.40,000 to Q.100), and General Land Ownership Registry (from 10 to 3 - 6 days). - An important component of this process has been a partnership with the private sector through the Guatemalan Chamber of Construction, which has facilitated communication on how to improve the services offered through the One-Stop Construction Service.

Country: Guatemala
Experience: One-Stop Window for Construction Work in the Municipality of Guatemala Institution: Ministry of the Environment and Natural Resources and the General Land Ownership Registry Webpage: http://www.muniguate.com/ Ministry of the Environment and Natural Resources: http://www.marn.gob.gt/ General Land Ownership Registry: http://www.rgp.org.gt/ Opportunities for Collaboration Supply: What is offered will depend on the specific conditions in each country. Demand: Information and experiences related to building licensing procedures

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Support Platform for Exports, PAEX


Export Platform Seeks to Benefit Countrys Producers and Exporters
- With the purpose of benefitting all producers and exporters in the different sectors at the national level, a technical support system called Exports Support Platform, or PAEX, will be implemented. - The development of PAEX will have two phases: a physical phase of information services delivery and a second phase of online transactions in the framework of E-Government. - The objectives of this initiative are to bring public services such as registration, accreditation, certification and verification closer to the stakeholders in the plural economy through the implementation of a physical as well as a virtual Support Platform for producers/exporters, with simplified processes and transactions. - The project will be implemented in a period of two years beginning in January 2014.

Country: Bolivia
Experience: Platform for the Support of Exports, PAEX Institution: Ministry for Sustainable Development and a Plural Economy MDPyEP Date: 2013 2015 Webpage: www.produccion.gob.bo

Opportunities for Collaboration Supply: Visits by technical personnel from other countries to the Ministry and vice versa. Demand: To learn about the experiences of other countries regarding the process of implementation of this type of platform, involving infrastructure as well as technical and technological parts, their lessons learned on stakeholders involved, the projects organization, access to financing, etc.

Exportar Ms
Program Will Provide Tools so Businesses May Increase Exports Country: El Salvador
Experience: Exportar Ms Institution: Ministry of the Economy Date: 2013 - present Webpage: www.proesa.gob.sv

- The Exportar Ms Program aims to enable more local companies already exporting to obtain first-hand market information, training, technical assistance and support in their efforts to promote products and services with potential in markets in Germany, the United States, Panama, and the Dominican Republic. - The program is designed to provide support to businesses to enable them to grow and diversify their markets. - The phases of the program are: providing market information, offering business assistance, providing the support of a specialist in the target market, and coordinating a trade mission to the target market.

Opportunities for Collaboration Supply: To share the institutional experience through bilateral technical cooperation programs and nonfinancial resources: exchange of experts, information, documentation, and best practices. Demand: Similar experiences from other countries.

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Western Hemisphere Border Management Reform


Stimulating Regional Competitiveness through Border Management Reform Country: United States
Experience: Western Hemisphere Border Management Reform Institution: U.S. Department of Commerce Date: 2011 - 2014

- This project addresses customs modernization priorities in several countries of the Americas, as businesses have identified trade facilitation, and particularly border management, as major competitiveness barriers in the Western Hemisphere. - The projects objectives are to establish and strengthen public-private partnerships to work on border management reform, and to increase the customs technical expertise of the public and private sectors in each country. - Workshops conducted to achieve these goals have attracted more than 100 participants in Honduras and Costa Rica, and 150 participants in El Salvador. - The public-private partnerships formed through the course of the workshops continue to engage each other through consultative groups.

Opportunities for collaboration Supply: To facilitate knowledge sharing and exchange with other RIAC members and provide advice or best practices to other institutions that wish to replicate the project. Demand: To learn about other innovative methods RIAC members have used to encourage publicprivate dialogue on competitiveness issues, especially techniques to encourage and ensure SME involvement.

Single Registry for Secured Transactions RUG


RUG System Facilitates Registry Procedures for Security Interests Country: Mexico
Experience: Single Registry for Security Interests (RUG) Institution: Secretariat of the Economy Date: 2010 - present Webpage: www.rug.gob.mx

- The RUG is a system of online registration that allows users to conduct transactions directly, without the need to wait in line, for payment of duties, or to obtain a rating and prior analysis. - The system facilitates the registration process of security interests, reduces registration times, and eliminates transaction costs related to this process. - With the RUG, 91% of operations are conducted directly a by creditor, which means immediate savings to their operations. - With the launching of the RUG, 145,803 registrations have been made, as well as more than 286,127 operations, since its launch in October 2010.

Opportunities for Collaboration: Supply: Sharing of information. Demand: Exchange of best practices regarding the Legal Regime of Security Interests, electronic signature, and the development and implementation of Security Interests Registries.

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Development of a National Competitiveness Strategy


National Competitiveness Strategy Will Help Achieve Sustainable Economic Development
- Long-term planning is part of an essential process to encourage greater rates of economic growth and integral development in Honduran society. That is why a Vision for the Country was created for 28 years that includes a National Competitiveness Strategy (ENC). - The objective of the ENC is to contribute to facilitate the necessary conditions to achieve an accelerated and sustainable economic growth that translates into social wellbeing for all the regions of the country. - To provide follow-up to the ENC and evaluate its results, the National Council on Competitiveness and Innovation (CNCI) was created. The Council also supports the generation, discussion, and validation of policies and programs. - Among the achievements of this project are the identification of key stakeholders for the promotion and fostering of competitiveness in the country, the understanding of stakeholders involved of the importance of competitiveness, and the creation of spaces for dialogue with representatives from the public, private and academic sectors, as well as civil society

Country: Honduras
Experience: Development of a National Competitiveness Strategy Institution: Technical Secretariat for Planning and External Cooperation (SEPLAN) Date: 2012 - Present Webpage: www.seplan.gob.hn/beta/

Opportunities for Collaboration Supply: Exchange of information, peer review, videoconferences, and work meetings. Demand: Transfer of methodologies for the formulation and evaluation of policies, programs for the promotion of competitiveness, and experiences in promoting competitiveness in diverse environments.

Competitiveness Agenda 2012-2013


Competitiveness Agenda Moves Country Forward to 72% Fulfillment of Goals Country: Peru
Experience: Competitiveness Agenda 2012-2013 as a tool for driving competitiveness reform Institution: National Competitiveness Council of Peru Date: 2012 - Present Webpage: www.cnc.gob.pe

- To facilitate the implementation of the National Competitiveness Plan (2005), which contains ambitious goals but not short-term achievement stages, the Agenda on Competitiveness is created to identify and prioritize goals by stages. - This first Agenda was created for 2012-2013, and there is one currently being prepared for 2014-2018. - The objective of the Agenda is to establish objectives to improve competitiveness in the country through seven strategic areas: science, technology and innovation; business development, productive quality and education; internationalization; infrastructure; information and communications technology; business facilitation; and the environment.

- Since the implementation of this project, there has been average progress of 72% towards fulfillment of set goals, compared with 58% in 2012. - All of this has placed competitiveness as a national priority, and has generated discussion and a collective will that is contributing to make progress on the reforms. Opportunities for collaboration: Supply: Sharing of information electronically, hosting a videoconference to explain the experience in more detail, conducting a workshop. Demand: Interested in learning about the experiences of other RIAC countries in the design and implementation of subnational competitiveness plans, as well as the role that institutions such as the CNC have played in said process.

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Second Congress of the Dominican Industry


Congress of the Dominican Industry Boosts Manufacturing Sectors Competitiveness Country: Dominican Republic
Experience: Second Congress of the Dominican Industry Institution: National Competitiveness Council of the Dominican Republic (CNC-RD) Date: 2012 2017 Webpage: www.2docongresoindustrial.do - The Action Plan consists of legal and institutional reform in the industrial sector, doubling exports and generating 200,000 new jobs. - The Action Plan has created the Table for Monitoring the Implementation of the Proposals of the Second Industrial Congress, which serves as an instrument of public-private dialogue and monitors the implementation of proposals. - The plan has allowed the creation of seven technical subcommittees: exports, financing, production chains, formal employment, R & D + I, and institutional infrastructure. Opportunities for Collaboration: Supply: Providing government and private sector technicians to offer information and assistance to countries interested in replicating the experience. Opportunity to host workshops, internships and meetings. Demand: Knowledge of strategies for consolidating publicprivate dialogue and public policies for the development of the industrial sector.

Microcredit Program
Microcredits to Help Eradicate Poverty and Boost Entrepreneurship
- With the goal of helping to eradicate poverty and stimulating entrepreneurship, the Microcredit Program was established to accommodate entrepreneurs with little or no access to the financial products of financial institutions. - The programs objectives are to accommodate nonbankable entrepreneurs with suitable products; promote entrepreneurship; help eradicate poverty; and stimulate and increase production.

Country: Suriname
Experience: Microcredit Program Institution: Womens Business Group Foundation Micro Kredieten Unit (MKU) / Ministry of Finance Date: 2010 - 2014 Webpage http://mku.cottage-it.com/

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ENERGY

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Energy for Sustainable Development


Energy Policy Framework to Guide Sector Development in Next 30 Years
- Through the creation of an Energy Policy Framework, the Government of Belize has taken a necessary step to guide the development of the energy sector along a path of efficiency, sustainability and resilience over the next 30 years and to lead Belize down a path of a clean carbon economy. - The country seeks to improve energy efficiency due to reduction in energy wastage in buildings by 20% and less dependence on fossil fuels. - In order to assist the Government of Belize with accomplishing this goal, the Inter-American Development Bank approved Technical Cooperation to promote and support sustainable energy and energy conservation programs in order to minimize the dependency on fossil fuels in Belize and to reduce carbon emissions. - It is intended for project activities to serve as harbingers toward an energy efficient economy within the Caribbean and commercial uptake of successful models will be encouraged.

Country: Belize
Experience: Energy for Sustainable Development Institution: Ministry of Energy, Science and Technology and Public Utilities Date: Ongoing Webpage: www.estpu.gov.bz - The Private Sector has made progress in its use of Renewable Energy Resources, especially its hydroelectric potential, through the construction of a few hydropower plants (Mollejon, Chalillo, Hydro Maya, and Vaca). These have allowed Belizes electricity generating capacity from Hydro to be above 50% of generating capacity.

Development of Renewable Energy, Energy Efficiency, and Electricity


Renewable Energy Technology to Help Provide Electricity to Remote Areas Country: Suriname
Experience: Development of Renewable Energy, Energy Efficiency, and Electricity Institution: Ministry of Natural Resources Date: Ongoing - The strategy will promote the introduction of Renewable Energy Technologies to deliver electricity to the interconnected areas in the coastal plain under public and self-supply business modalities.

- As 15% of the countrys population has no access to electricity and the rest is supplied by diesel generation, this project is expected to offer energy solutions for the interior of the country. - The projects objectives are to devise a national strategy and to design an enabling legal and regulatory framework for the introduction of renewable energy and the promotion of energy efficiency technologies in Suriname. The strategy will be part of the national action plan to design a modern institutional and regulatory energy framework for Suriname.

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EXPERIENCES SHARED BY INSTITUTIONS AND PROGRAMS

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CONTRIBUTION BY THE INTER-AMERICAN COMMITTEE ON PORTS (CIP/OAS)


Port Expansion Plan Promotion of Ports Development in the last 20 years
- The port expansion plan consisted in identifying the port areas at a national level, public and private investments, counterclaims for public areas and goods, methodologies for pricing, and promotion of continued police surveillance. - Approval of investment plans of port concessionaires (private), allowing terminals modernization and specialization of port operations. - Of the 176.5 million tons moved in 2012, 89%, or 157.5 million tons were from foreign trade. Of these, 80.5% were coal and hydrocarbons. The current installed capacity is 302.6 million tons/year; 270 million tons/year on the Atlantic coast and 32.6 million tons/year on the Pacific coast (11% of the total). - Between 2015 and 2030, the Pacific Coast will require ports to increase capacity to at least 174 million additional tons.

Country: Colombia
Experience: Promotion of Ports Development in the last 20 years Institutions: National Planning Department, National Council on Economic and Social Policy CONPES and other government entities involved in the development of the national port system Date: 1999 2013 webpage: www.mintransporte.gov.co Opportunities for collaboration: Supply: Sharing of information, exchange of experts, seminars / courses / workshops, virtual resources (video, platforms). Demand: Information regarding licensing procedures in construction.

Logistics Model for the Port of Valparaso ZEAL Information System Improves Flow in Port System

Country: Chile
Experience: Logistics Model for the Port of Valparaiso Institutions: Public and private organizations, regulatory agencies and institutions in Port of Valparaiso. Date: 2008- present webpage: www.puertovalparaiso.cl

- The Logistics Model of the Port of Valparaiso consists of the construction of an Extension Zone for Logistics Support (ZEAL) to port terminals via a public route and introduce an in-house information system at the sub ministry (Si-ZEAL). - Si-ZEAL facilitates communication between the different stakeholders, public and private, of the logistics community of Port of Valparaiso; allows complete traceability of loads within the port system and even detects inefficiencies in some processes. - The model allows the clearance of some port areas for the development of more efficient transport operations, which also reduces pollution and traffic congestion.

- The Model has reduced the average length of time trucks spend in the port system by 70%. - The Si-ZEAL information system is currently being updated and authorities are contemplating an expansion of the ZEAL. Opportunities for collaboration Supply: Information sharing and exchange of experts. Demand: Exchange of best practices related to licensing procedures in construction.

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Port Security and Development Improving Port Security toStrengthen Business Activity

Country: Haiti
Experience: Port Security and Development Institution: Haiti National Port Authority Date: 2013 - present Webpage www.apn.gouv.ht

- The objectives of the program are to enhance maritime security; educate stakeholders, port users and the general population; ensure port facilities by implementing physical security measures; develop operational measures through a Security Plan; and develop regular periodic inspection. - It is expected that the program will help create a safer environment for business activity, improvements in port services and a reduction in illegal traffic and cargo robbery.

- One of the lessons learned is the framework of cooperation developed with other private and public institutions.

Monitoring System for Quality Brands Monitoring System Identifies Bottlenecks and Lowers Logistics Times

Country: Mexico
Experience: Monitoring System for Quality Brands Institutions: Comprehensive Port Administration of Ensenada, S.A. de C.V. Date: 2013 present Webpage: www.puertoensenada.com.mx www.marcacalidadens.com.mx

- The Monitoring System for Quality Brands is a computer system that allows the step-by-step monitoring for sending containers, from a logistics standpoint. - It identifies bottlenecks generated during operations and allows necessary actions to be taken, allowing for reduced logistics times. It also identifies target times for each activity and monitors them to ensure on-time delivery. - The system allows customers/consignees to eliminate dependence on third parties, thus making activities within the Ensenada Port more transparent and accessible.

Opportunities for collaboration Supply: Sharing information, exchange of experts, internships, seminars/ courses/ workshops, and virtual resources (video, platforms). Demand: Information regarding licensing procedures in construction.

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Inclusion of Women in Ports-Related Work


Training for Women Will Increase Efficiency in Port Operations
- The company TISUR supports the development of port activities in the province of Islay and has included womens integration as one of its pillars. TISUR offers training for women to learn how to perform their duties. - Incorporating more women in its activities has allowed TISUR to increase the efficiency of its operations and the credibility of its services. The actual productivity has increased by 6%, and service and load dispatching times have been reduced, thus generating higher profits for the company. - There is currently 25% more women involved in port activities than back in 2002, benefiting 98 family members and providing support for the education of their children.

Country: Peru
Experience: Inclusion of Women in Ports-related Work Institutions: TISUR A Romero Group company operating in the province of Islay Date: 2002 - present Webpage: www.tisur.com.pe

Opportunities for collaboration Supply: Sharing of information, exchange of experts, internships, seminars / courses / workshops. Demand: Identifying business development opportunities based on gender diversification and taking into account womens behavioral characteristics and abilities.

Biological Monitoring Project in Four Pilot Ports


Monitoring Project Helps Protect Native Ecology and Public Health
- The transfer of invasive aquatic species in ballast water is one of the greatest environmental challenges facing the shipping industry. More than 10,000 species can be moved daily in ballast water and discharged into new environments. It may become invasive, break the native ecology and affect the economy and health of people. - The Biological Monitoring Project collects information on endemic and exotic marine species and identifies cases of marine bio-invasions in the four major ports in Venezuela: Cabello, Amuay, Complejo de Jose and Ordaz. The monitoring allows inter-institutional information exchange and creates a baseline biological assessment. - Monitoring also helped to design and provide the best technical elements to train staff, to facilitate better communication between the supervising authorities and the ships arriving at ports, and to review ballast water forms. - As a lesson learned from the experience, it is considered necessary to design and implement more procedures for national legislation on this issue and to continuously improve the technical capabilities of the ports employees.

Country: Venezuela
Experience: Biological Monitoring Project in Four Pilot Ports Institutions: Bureau of Hydrography and Navigation, Coordinating Office of Hydrography and Navigation, Coast Guards, Venezuela Oilers, Ministries of Foreign Affairs, Environment and Health, Socialist Institute of Fisheries and Aquiculture, National Universities of Venezuela Date: 2012 2014 Webpage: www.inea.gob.ve

Opportunities for Collaboration Supply: Information, exchange of experts, internships, seminars / courses / workshops, virtual resources (video, platforms). Demand: Exchange of international experiences and defining new local and regional strategies.

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RADICAL INNOVATION SUMMIT OAS-ARTCA Project


Radical Innovation Summit Seeks to Integrate Innovative Practices in Education
Experience: Radical Innovation Summit (RIS) Institutions: OAS-ARTCA Project with National Science Foundation Date: 2013 - ongoing Webpage: http://artcaonline.org/ - The RIS is a summit that convened innovation practitioners and scholars from across the Americas to reflect on education reconfiguration with a focus on Science, Technology, Engineering and Math (STEM). - The RIS helps identify and articulate strategies to promote creative and open learning environments, thus allowing the development of innovative thinking skills, behaviors and dispositions. - This summit organized in 2013 allowed leading practitioners to exchange good practices and discuss ways to implement innovative teaching methods at a national level. - Forty leading practitioners from the Hemisphere collaborated; a report was produced with recommendations and next steps; an online group was created to allow participants and other professionals to continue discussions; and a study was conducted to map social networks. - A second edition of the RIS is planned for 2014. Opportunities for Collaboration Supply:The RIS can share information with RIAC member countries and institutions, and extend an invitation to the second edition of the summit in 2014. Demand:Identify institutions willing to host and/or collaborate in the organization of future editions of RIS activities.

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PAN-AMERICAN ADVANCED STUDIES INSTITUTE (PASI), OAS-ARTCA Project


PASI Fosters Use of Advanced Technologies to Study Large-Scale Problems
Experience: Pan-American Advanced Studies Institute (PASI) Institutions: OAS/ARTCA Project with National Science Foundation Date: 2013 - ongoing Webpage: http://artcaonline.org/ - PASI provides training in the use of data to study large-scale challenges. In 2013, a workshop was organized in Guatemala where participants, through methods in computation-based discovery and hands-on laboratory sessions, gained foundational knowledge in data science. - The workshop expanded participants knowledge of high performance computing and fostered new networks that stimulate national and international co-operative partnerships. - PASI created cross-disciplinary and multilateral collaboration teams of young researchers and highly qualified instructors interested in studying large-scale problems using advanced technologies. - The training materials are publicly available online, and the network currently includes 10 instructors and 25 participants from the Americas. - A Second Edition of PASI is planned in another country of the Americas in 2014. Opportunities for Collaboration Supply: PASI can share information with RIAC member countries and institutions and extend an invitation to the second edition of the workshop, in 2014. Demand: Identify academic institutions willing to host and/or collaborate in the organization of future Editions of the PASI workshops.

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COMPETE CARIBBEAN PROGRAM


Compete Caribbean Seeks to Enhance Competitiveness in the Region
Experience: The Compete Caribbean Program: Donor Collaboration for Private Sector Development Institution: The Compete Caribbean Program is jointly funded by the Inter-American Development Bank (IDB), the United Kingdom Department of International Development (DFID) and Foreign Affairs, Trade and Development Canada (DFATD) and operates in partnership with the Caribbean Development Bank (CDB). Date: 2010 - 2015 Webpage: www.competecaribbean.org - The Compete Caribbean Program is a USD$40-million private sector development program jointly funded by the Inter-American Development Bank, the United Kingdom Department of International Development, and the Canadian International Development Agency. - Compete Caribbean provides technical assistance grants and investment funding to support productive development policies, business climate reforms, clustering initiatives, and SME development activities in the Caribbean region. - The ultimate goal of the program is to foster sustainable economic growth and enhance competitiveness in the Caribbean. - The Compete Caribbean Program draws on a wide pool of local and international experts and builds alliances with institutions and universities from across the globe. - To date, a total of 14 Business Climate Reform projects have been approved and 43 Knowledge Products developed. - Compete Caribbeans approach, structure, unique features and alliances make it replicable in other regions of Latin America. - Since 2012, The Compete Caribbean Program has expanded its operations to Dominica, the Dominican Republic, Grenada, Guyana, Haiti and St. Kitts and Nevis. As such, the program now has operations in 14 of its 15 CARIFORUM beneficiary countries. Opportunities for collaboration Supply: The Compete Caribbean Program is interested in understanding new models and approches to solving issues related to private sector development in the Caribbean. The program has been participating and will continue to form cohesive partnerships and collaborations with similar programs that are being implemented in the region as well as with other donor agencies. Demand: Facilitating targeted knowledge exchanges and study tours amongst key stakeholders in RIAC countries would be highly beneficial, particularly as it relates to sharing best practice in Public-Private Dialogue, designing a reform agenda and implementing it in a short time frame.

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CAF SUSTAINABLE CITIES PROGRAM


Growth of Competitive Cities to Maintain Progress in Productive Development
Experience: Competitive Cities Program (Productive development through Public Capacity and Value Chains) Institution: CAF, Development Bank of Latin America Date: 2011 - ongoing - The program aims to continue working on the competitiveness agenda in two ways: strengthening the public sector to design and implement business development services and focusing efforts to eliminate and reduce obstacles to the development of specific value chains in cities. - The Competitive Cities Program started in Cuenca in Ecuador, Fortaleza in Brazil, and Barranquilla in Colombia. Soon, it will continue in cities in Peru, Argentina, and Panama. - The program will improve competitiveness even more as it is being integrated into a bigger initiative called Cities with a Future, which combines joint interventions in productive transformation, social, security, and infrastructure improvements in cities in CAF member countries. - The programs sustainability remains with the support of the CAF Vice Presidencies. As such, it seeks the incorporation of long-term interventions in different areas of at least two and three years that can work jointly with the cities development plans. - The program has allowed strong public-private partnerships in other cities where the program is being implemented or is planned for execution, in addition to joint financing with key actors. Opportunities for Collaboration Supply: Exchange of best practices on issues of competitiveness, cities and local development. Demand: Best practices about cities development policies, value chain methodologies, implementation of reforms, among other related experiences.

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MESOAMERICA PROJECT LAC FLAVORS EVENT


Business Conference Brings Together SMEs and Buyers
Experience: Mesoamerica Program- LAC Flavors Event Institution: Mesoamerica Program Date: 2009 present Webpage: http://events.iadb.org/calendar/eventDetail.aspx?lang=es&id=4059 - LAC Flavors is an event that brings together small and medium enterprises and exporters of the food industry of the Mesoamerican region, with the goal of expanding their trade networks and gaining access to new international markets. - The event is held annually with the support of the Inter-American Development Bank (IDB) through the Mesoamerican Project and the public entities in charge of international promotion in the countries of Mesoamerica. - In LAC Flavors 2013, participants included 180 food exporters who were selected; 1,625 business appointments were created; more than USD$14 million dollars materialized into businesses; and USD$42.6 million were achieved in future purchase options. - LAC Flavors 2013 organized the business workshop titled, Trade in Action: Workshop for Women Entrepreneurs, where experts in the area of entrepreneurship and leadership helped business owners develop competitive business strategies, offered practical advice for their businesses and provided marketing ideas to make their products more attractive. - Currently, the IDB is in the process of evaluating this event and the possibilities of expanding this regional experience to all of Latin America. Opportunities for Collaboration Supply: Opportunities for Collaboration. Demand: There is interest in getting to know experiences from other countries in promoting innovation and international entrepreneurship, prioritizing SMEs.

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JUVENTUD EMPRENDEDORA QUERETARO, MEXICO


Young Entrepreneurs Develop a Culture of Self-Employment
Experience: Juventud Emprendedora Institution: Youth Secretariat of the State of Queretaro (SEJUVE) Date: 2010 present Webpage: www.queretaro.gob.mx/sejuveqro/ - Juventud Emprendedora is an initiative that arises from the need to create sources of self-employment for Queretaros young people and motivate sustainable and dynamic economic growth in the State. The program was implemented from a federal program by the Mexican Youth Institute (IMJUVE) that has been operating for more than 10 years and is present in 15 states. - The stakeholders involved are banking and academic institutions, and the Ecosystem of Entrepreneurs that is made up of government bodies, chambers of commerce, business incubators and young entrepreneurs. - SEJUVE offers loans so that young people may start a business or expand an existing business project and provides advice and training prior to and during the development of the project on tax regimes, social networks, marketing, inventories, and human resources, among other topics. - The results have become sustainable during the programs 4 years in operation, and this is evident from an increase in the initial funding, which went from being approximately USD$30,000 with 14 projects in 2010 to USD$480,000 with 200 projects in 2013. Opportunities for Collaboration Supply: Information sharing, training to those wishing to replicate the program, and videoconferences. Demand: Learn about similar programs in other countries, as weel as training opportunities on implementation of public policy dealing with youth and evaluation of their results.

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CENTER FOR ECONOMIC DEVELOPMENT INNOVATION INSPIRED BY TECHNOLOGY, PUERTO RICO


Innovation Center Will Seek Economic Development Inspired on Technology
Experience: Center for Economic Development Innovation Inspired by Technology Institution: Georgia Institute of Technology Date: 2012 2013 Webpage: www.prsciencetrust.org - The Innovation Center for Technology was launched with the goal of supporting innovation, stimulating industry and academia interaction, and supporting commercialization with universities and other innovation ecosystem partners. - Thus far, Georgia Tech has conducted workshops on university governance, faculty commercialization strategies, and cluster development. In addition, the Center has assisted with technology assessments for university-based intellectual property, preparing grants for economic development programs, and collaborated with our sister EDA University Center to share best practices. Opportunities for collaboration Supply: Information sharing. Demand: Triple Helix integration and stimulation to produce a thriving innovation economy.

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Message from Trinidad and Tobago RIAC Chair Pro Tempore 2014

Dear friends and colleagues from across the Americas, it is a pleasure to welcome you as Chair Pro Tempore 2013 2014 for the VIII Americas Competitiveness Forum to be held in Port of Spain, Trinidad and Tobago. We are very keen to take up the mantle in 2014, continuing from the accomplishments of Panama and the Inter-American Competitiveness Network (RIAC) to elevate the competitiveness agenda of the Americas. You will find Port of Spain to be an energetic city and the Forums focus on the human imagination will no doubt stimulate you. In keeping with the precedent set by previous hosts, Trinidad and Tobago is committed to advancing the efforts of the RIAC. We do this by recognising that the genesis of competitiveness is human creative capacity derived from the human imagination. The human imagination therefore needs to be stimulated and nurtured in order to build competitive capacity. Exploring this concept further in 2014 will expand the innovative capacity of the Americas and open new opportunities for us to share and grow from each others experiences. As RIAC member countries, it is our responsibility to be introspective about our individual needs, counteractive to correct our wrongs and collaborative in finding solutions and in charting a new course for our economic development. But we also have a competitive energy sector and some potent industrial clusters. We look forward to bringing a Caribbean perspective to the forefront through an exchange of ideas and experiences. In the Caribbean, we have many examples of innovation through our music, fashion, literature and tourism. We recognise that in order to increase our resilience, an innovative approach is fundamental. Consequently, we will lead the regional effort to strengthen the development process in the Americas. With the support and guidance of the Organization of American States, we will continue to work towards the fulfillment of the mandate of the RIAC and to implementing the work of the Consensus of Santo Domingo. I take this opportunity to thank and congratulate the outgoing Chair Pro Tempore 2012 2013, Panama for her commitment to promote new partnerships and opportunities across the Americas. Finally, I extend an invitation to you to attend the VIII Americas Competitiveness Forum to be held in Port of Spain, Trinidad and Tobago. Trinidad is Nice. Tobago is special. A warm welcome awaits all of you.
Whats special on this page? Find out: 1. Please visit the App store for your Apple or Android device and download the free app Daqri. Shortcuts to the app may also be found at:

Senator, Dr. the Honourable Bhoendradatt Tewarie


Minister of Planning and Sustainable Development Republic of Trinidad and Tobago

http://go.illinois.edu/daqri_app_apple http://go.illinios.edu/daqri_app_android 2. Start the application. 3. Point the devices camera toward the picture of the Minister covering a bigger space than the complete image. 4. Wait a few seconds until the image is processed. 5. Keep the camera over the picture at all times. You may need to move your camera slightly to more tightly focus on the image. 6. Experience science in a whole new way!

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A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG/2013

ACKNOWLEDGEMENTS

The second Signs of Competitiveness in the Americas report 2013 was made possible thanks to the contributions received from eighteen countries in the Americas members of the RIAC, eight multilateral institutions / academic institutions / programs in the region, the Basque Country, and five experts on issues of infrastructure and technology. The countries that contributed their experiences on projects and initiatives they are carrying out at the national level that can be shared across the region were Belize, Bolivia, Chile, Colombia, Dominican Republic, El Salvador, Grenada, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru, St. Lucia, Suriname, Trinidad and Tobago, United States, and Uruguay. The multilateral and academic institutions that support the work of the RIAC and contributed technical pieces and experiences to the report were the Economic Commission for Latin America and the Caribbean - ECLAC, the Central American Bank for Economic Integration CABEI, the Development Bank of Latin America CAF, Compete Caribbean Program, the Global Federation of Competitiveness Councils GFCC, and the Tecnolgico de Monterrey. The National Innovation Council for Competitiveness of Chile and Orkestra Basque Institute of Competitiveness and Deusto Business School also contributed technical pieces on the outlook for infrastructure. The experts on infrastructure and technology that offered inputs for the section titled Landscape of Infrastructure in the Americas were the Expert on Higher Education Dr. Jamil Salmi; the President of INCAE Business School in Costa Rica, Dr. Arturo Condo; the National President of Transport and Logistics at Georgia Tech in Atlanta, Dr. Chelsea White; and the Deputy Administrator of the Panama Canal, Mr. Manuel E. Bentez. A special thanks to Panama for leading the preparation of the report as Chair Pro Tempore of the RIAC 2013; in particular its Chair, Kristelle Getzler, Executive Secretary of the Secretariat of Economic Affairs and Competitiveness of the Ministry of the Presidency of the Republic of Panama; Gina Gomez, Edanela Urrutia, Evelyn Urrutia and Sugey Serrano. Sincere appreciation to Canadas Department of Foreign Affairs, Trade and Development for making possible the ongoing work of the RIAC. A special gratitude and recognition to the OAS-ARTCA Project, and particularly to Dr. Alan Craig, Senior Associate Director for Human-Computer Interaction at I-CHASS, University of Illinois, for the display of Augmented Reality content developed for this Report. Finally, we note the assistance provided by the OAS General Secretariat in its capacity as Technical Secretariat of the RIAC, which supported the coordination and publication of the report and the organization of the VII Americas Competitiveness Forum, under the leadership of the Executive Secretary of Integral Development, V. Sherry Tross, the guidance of the Director of the Department of Economic and Social Development, Maryse Robert, and the work of the team of the Section on Competitiveness, Innovation, and Technology, Csar Parga, Adriana Bonilla, Juan Carlos Montoya, Andrea Lobato, Cristina Rechy, Martha Beltrn-Martinez, and Aryanne Quintal, helped by Kristen Kuhn, Jos Luis Briones, Ricardo Quiroz and other OAS colleagues, including Alexandra Barrantes, Lynn Swenson, Janne Rudder, Jos Torres and Melanie Dominique.

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A CONTRIBUTION OF THE INTER-AMERICAN COMPETITIVENESS NETWORK (RIAC) TO THE REGION / WWW.RIACREPORT.ORG/2013

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