Download Towards a Competitive Business Environment: a private

Towards a Competitive Business
Environment: a private sector
perspective
Julio Favre
President of CONFIEP
1
Globalization
• A globalized world requires competitive enterprises
• To participate of the benefits of globalization it is
necessary to improve the productivity level and
competitiveness of enterprises
• Economies which are not capable to propitiate the
adjustment of enterprises will be more vulnerable to
the process.
Governments
Macro Factors
“To identify and
eliminate barriers that
don’t let the
development of
competitive
capabilities”
Enterprises
“To improve the
productivity”
Together effort to ameliorate
competitivity
Micro Factors
Where are we in terms of competitiveness?
!"
#
$
%
%
%
&'
&'
()*
+,
(*
%
%
%
Obstacles for enterprise competitiveness
&RXQWU\
!""
#
%"&#
()
5DQNLQJ
$
'
Access to internet
&RXQWU\
%"&#
#
!""
3HUë
3HUë
5DQNLQJ
Obstacles for the enterprises competitiveness
Quality of public
schools
Country
Costa Rica
Chile
Argentina
México
Colombia
Brasil
Perú
El Salvador
Venezuela
Bolivia
Ecuador
Ranking
37
43
49
50
51
53
55
56
57
58
59
Cooperation
University - Enterprise
Country
Brasil
Costa Rica
México
Colombia
Argentina
Bolivia
Venezuela
Chile
Perú
Ecuador
El Salvador
Ranking
25
36
37
40
44
46
48
51
53
57
58
Obstacles for the enterprises competitiveness
&RXQWU\
!""
3HUë
3HUë
#
%"&#
5DQNLQJ
'
&RXQWU\
3HUë
3HUë
!""
#
%"&#
5DQNLQJ
'
$
'
Costs of making business
Cost for capital goods and not produced issues
Tariffs for capital goods and not produced issues
(%)
14,0
12,0
12,0
10,0
8,0
8,0
6,0
5,0
5,0
Mercosur
Andean Comunity
4,0
2,0
0,0
Perú
Chile
Fuente: Comex
In Perú, the total average expenses for a container of 20’ is in
between 30% and 70% over the average expense in the world
Portuary Costs
(US$ by container of 20 feet)
450
400
350
300
250
200
150
100
50
0
Buenos
Aires
Saint John
Hamburgo Valparaiso
Melbourne
Montreal
Japón
Perú
Fuente: Enapu, Agentes de Aduana, Drewry Shipping Consultants.
At the Callao Port, the time of delay in the wharf (time of rotation) is
about 29 hours, when the international average is about 20 hours. The
occupability rate is below optimum (60%)
INDICATORS OF EFFICIENCY OF PORTS
(Average January-June 2000)
Port
Paita
Callao
Ilo
Matarani 3/
Salaverry
San Martín
Chimbote
Time of rotation 1/
(hours)
Measure of occupability 2/
(%)
28,5
28,9
30,8
33,3
42,1
49,6
138,3
31,0
38,2
20,1
36,9
17,3
24,9
44,0
1/ Tiempo total de amarradero / número de naves
2/ Tiempo total de amarradero / tiempo disponible * 100
3/ Promedio Agosto-Diciembre 1999.
Fuente: ENAPU
High taxes: higher rates, reduced tributary basis and collection
concentrated in few contributors
ADDED TAX
VALUE
(%)
25,0
21,0
20,0
16,0
15,0
18,0
18,0
Chile
Perú
16,5
12,0
10,0
5,0
0,0
Ecuador
Colombia
Venezuela
Argentina
Fuente: Banco Mundial
High costs of financement: scarce banking financement, expensive
Majority of short term
GROSS INVESTMENTS
(% PBI)
70
66
60
50
39
40
29
30
20
21
18
19
Perú
México
Colombia
10
0
Chile
Brasil
Argentina
Fuente: SBS, LatinFinance
Higher labor costs which encourages informal contracting workers
LABORAL COSTS FOR THE EMPLOYER IN
LATIN AMERICA
(Remuneración bruta = 100)
60
58
58
56
56
54
52
49
50
49
48
46
45
44
42
40
Brasil
Perú
México
Argentina
Chile
Fuente: OIT
Few investments in human capital which generates less prepared and
less productive labour force
PUBLIC EXPENDITTURE IN EDUCATION
(% del PBI)
6
5,2
5
4,1
4
3,6
3,5
3,5
2,9
3
2
1
0
Venezuela
Colombia
Chile
Argentina
Ecuador
Perú
Fuente: Banco Mundial
Scarce Basic Infrastructure
Paved roads
Telephone communications
(% del total de vías)
(Por cada 100 habitantes)
40
35
30
33,6
25
29,5
20,1
20
25
20
15
18,6
16,0
15
16,8
13,8
12,9
12,0
10,9
10
9,1
6,7
10
5
5
0
VenezuelaArgentinaEcuador Chile
0
Perú Colombia
Fuente: Banco Mundial, última data disponible
Argentina Chile Colombia VenezuelaEcuador
Perú
Fuente: UIT
Essential components for a
National Competitivity Politic
Essential components for a National
Competitiveness Policy
•Sense of urgence shared by all sectors
•Common understanding of the problem
•Redifined roles for both public and private sector
•New approach on public and private relations
•Three main specific objectives:
• • • •Strategy based on competitive advantages over comparative
advantages
•Clusters oriented
Strategic networks for competitivity
“The strategic approach require the participation of all
society but with strong government and private sector
leadership. Nevertheless there are subjects which have to
be taken care by the enterprises, it is also true that there
are other problems that need direct government action as
the educational reform, judicial stability, market
regulations, among others. This strategic association for
competitiveness will streghten the dialog not only between
themselves but with the rest of society”.
Sistema de
Seguimiento de la
Economía
• Genera el diagnóstico
de la situación ac tual
de la econo mía
• Identifica las
actividades económicas
de mayor impacto en la
economía
Sistema de Inteligencia
de para el Desarrollo
de la Competitividad
Sistema de
Inteligencia de
Mercados
• Proporciona información
estratégica productomercado
• Identifica bases de
competencia de
productos con mayores
posibilidades de competir
en los mercados
estratégicos
• Proporciona
información para la
evaluación del impacto
de las estratégias para
la competitividad
Sistema de
Inteligencia
Comepetitiva
• Prioriza los productos en los mercados
estratégicos
• Identifica los productos a c lusterizar
• Define estratégias para la competitividad
• E valua el impacto de las es trategias en la
economía
• Proporcion la
información req uerida
para la comercialización
de dichos produc tos co n
clientes particulares
Ing. Leonel Guerra Casanova
Centro de Estudios Estratégicos
Sistema ITESM
A final reminder
“What less developed nations need is access and equal
opportunities to compete in global market, specially
developed nations markets.
As our leaders in Shanghai stated, we must work together
for a prosperous region, where benefits from globalization
and New Economy are shared among all nations.”
Towards a Competitive Business
Environment: a private sector
perspective
Julio Favre
President of CONFIEP
22