Business leaders from the Americas today joined Mauricio Claver-Carone, President of the Inter-American Development Bank, to discuss how the public and private sectors can collaborate to take advantage of integration, foreign direct investment and nearshoring opportunities to support the economic recovery of Latin America and the Caribbean.
The high-level dialogue “Integration for Recovery and Growth: Nearshoring in the Americas” was organized by the IDB with the support of the Americas Business Dialogue (ABD), the mechanism for private sector participation in the Summit of the Americas process. Over 500 private sector leaders participated in the online event.
President Claver-Carone and ABD member companies, particularly those involved in manufacturing, global services, and institutional investments, analyzed the type of government policies and incentives that would lead businesses to bolster production capacity and improve supply chain resilience in Latin American and the Caribbean.
Claver-Carone laid out how Latin American governments can leverage collaboration with the private sector to move forward on three key dimensions –investment, infrastructure, and integration – fundamental to attract firms looking to nearshore their operations, which can lead to employment and export-led growth contributing to the economic recovery of their countries.
“The IDB Group is focused on results and development impact. Nearshoring brings more than new investments; it brings the potential for new financing to the small and mid-sized enterprises of Latin America and the Caribbean who can become part of the new supply chains. Tied to this is the potential for quality jobs paying high wages, to the transfer of capital and technology, to the development of skilled human capital and to productivity and export-led economic growth”, said Claver-Carone.
IDB research shows that there are concrete nearshoring opportunities for countries in Latin America and the Caribbean, particularly when supplying the US market with products such as textiles, electric conductors, and knowledge-based services currently outsourced to other regions.
To take advantage of these opportunities, governments and the IDB should collaborate with private sector leaders and businesses to increase productivity, enhance human capital growth, and strengthen quality standards to ensure they are prepared to be local partners to foreign investors.
In a panel moderated by Fabrizio Opertti, Manager of the IDB’s Trade and Integration Sector, industry leaders presented their vision for Foreign Direct Investment under the current COVID-19 environment. They also shared critical factors considered by their companies when assessing sites to develop global supply chain operations.
Recent changes in global value chains and the increasing efforts of firms to improve their supply chains’ resilience and robustness, accelerated by the sanitary crisis, create a unique opportunity for Latin America and the Caribbean.
The event was also attended by the heads of the Investment Promotion Agencies from Latin America and the Caribbean.
ABD, a private sector-driven initiative facilitated by the Inter-American Development Bank, comprises private sector associations and more than 380 companies from the hemisphere. It was created in 2014 to foster a public-private dialogue on the priorities, challenges, and opportunities for economic growth and development in the Americas.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.