RSSAll Entries in the "The Scene" Category

PRIORITIZATION OF HUMAN CAPITAL - MOST IMPORTANT TRENDS BY REGION • Note: Figures in each cell represent the number of respondents who viewed the given trend as one of the top five most important, and who felt that the trend would be important in the given region. Percentages are calculated on the total number of respondents who selected the given trend as one of the five most important overall.  Source: Deloitte University Press, Global Human Capital Trends 2014: Engaging the 21st-century workforce.

THE SCENE: Trends in Human Capital

A recent report from Deloitte analyzes world trends in human capital for 2014, a year in which it said global organizations have left the recession behind and are positioning themselves aggressively for growth. It stated: “Slowness has given way to expansion. Retrenchment has been replaced by investment. The need to be careful has been replaced [...]

Source: McKinsey Global Institute, Reverse the curse: Maximizing the potential of resource-driven economies.

Natural potential

A recent report from McKinsey Global Institute tackles the question of countries whose economies depend largely on their natural resources and how they can maximize their potential. The report says that the number of countries where the natural resource sector represents the largest segment of the economy jumped from 58 in 1995 to 81 in 2011, [...]

Source: Fomin and Bloomberg New Energy Finance, Climatescope 2013: New Frontiers for Low-Carbon Energy Investment  in Latin America and the Caribbean.

New frontiers for clean energy

Climascopio’s 2013 report focuses on investment in low-carbon energy in Latin America. Climascopio is an initiative of the Multilateral Investment Fund (Fomin) and Bloomberg New Energy Finance for evaluating the investment climate as it relates to climate change in Latin America and the Caribbean. To do this, it considers four main parameters that are interrelated [...]

Source: Economist Intelligence Unit, Global microscope on the microfinance business environment 2013.

Pole of attraction for microfinances

The Economist Intelligence Unit recently issued the 2013 Global Microscope study on the business environment for microfinances. The analysis was first prepared in 2007 for the countries of Latin America and the Caribbean and was broadened to become a worldwide study in 2009. The report analyzes in-depth the business environment for microfinances in 55 countries, [...]

Stalled exports

According to the latest InTrade report, a compendium of information on integration and trade of the Interamerican Development Bank (IDB), Latin American exports are stalled, having had two low-growth years. The region’s annual increase of foreign sales was barely above the zero mark, and it remains stuck at about $1 trillion. In the first half [...]

Note: ALC-19 is the weighted average of the 19 countries analyzed. Source: IADB, Better Pensions, Better Jobs: Towards Universal Coverage in Latin America and the Caribbean

The pension bomb

The Inter-American Development Bank (IDB) has just launched the book Better Pensions, Better Jobs. Its authors state that although the countries of Latin America and the Caribbean have reduced levels of inequality and poverty, new problems are appearing. How to provide adequate pensions for older adults is one of the main ones. At present, just [...]

Source: OECD, PISA 2012

Poor quality education

The most recent test measurements by Pisa (Programme for International Student Assessment) from the Organization for Economic Cooperation and Development has bad news for Latin America. The Asians lead the rest of the world in this study, which evaluates knowledge and competence in mathematics, reading and science among 15-year-old students from participating nations. The main [...]

Source: IDB, Too Far to Export: Domestic Transport Costs and Regional Export Disparities in Latin America and the Caribbean

The disturbing cost of transportation

“Too Far to Export: Domestic Transport Costs and Regional Export Disparities in Latin America and the Caribbean,” is the title of the most recent study on integration and trade from the Inter-American Development Bank (IDB). It highlights the high cost of shipping Latin Americans face when sending their goods from the factories, mines and plantations [...]

Source: CAF, Entrepreneurship in Latin America: From Subsistence to Productive Transformation

Entrepreneurship: Opportunity vs. need

The annual report of CAF, Latin American Development Bank, was published recently, and it was dedicated to entrepreneurship in the region. Its title, “Entrepreneurship in Latin America: From Subsistence to Productive Transformation,” reflects the study’s central message. The region’s entrepreneurs are generally found in one of two extremes. One is the relatively small group of [...]

South-South trade grows

South-South trade grows

The structure of the world economy has changed substantially in recent years and continues to do so. This changing economic panorama has sparked a decade of evolving trade models, according to Trade and Integration Monitor 2013, a publication of INTrade, which is a system of information from the Inter-American Development Bank on trade and integration. [...]

The Number of Latin Globals Will Triple by 2025

The Number of Latin Globals Will Triple by 2025

It has become increasingly obvious since the financial crisis that the emerging markets have acquired greater dynamism and greater prosperity. However, the vast majority of the world’s largest companies are still based in the developed economies. This situation is about to change, according to a new study by McKinsey Global Institute (MGI). It predicts that [...]

Opportunities in the United States

Opportunities in the United States

According to Game Changers: Five opportunities for US growth and renewal, a report published by McKinsey Global Institute (MGI), growth in the United States over the next 10 years will come from five sectors: energy, trade, technology, infrastructure and talent. The latter two sectors will be important sources of growth until 2030. Latin America has [...]

Entrepreneurship and social mobility

Entrepreneurship and social mobility

The Inter-American Development Bank (IDB) has published the study Is Entrepreneurship a Channel of Social Mobility in Latin America? in which its authors, Francesca Castellani and Eduardo Lora, find that entrepreneurship doesn’t occur among people by chance. In fact, the evidence shows that entrepreneurs are found more frequently among higher-income groups who have more probability [...]

Developing countries will represent more than half of global capital stocks by 2030. (a. 2030 Panel projections assume a gradual convergence scenario of annual world economic growth of 2.6 percent over the next two decades, of which developing (high-income) growth will average 5.0 (1.0) percent annually.)

Latin America to double its capital stock

By the year 2030, half of the world’s capital stock will be in developing countries. This is suggested in Capital for the Future: Saving and Investment in an Interdependent World, from the World Bank, which studies different investment and savings scenarios for the next 20 years. Global capital stock will move to the developing world [...]

TAX Burden Gap - Source: IDB, More than Revenue: Taxation as a Development Tool.

In need of more tax reforms

“The most important reforms that need to take place in order to achieve sustainable and inclusive development in Latin America and the Caribbean, are those in the financial and taxing systems of the region.” This is the opening line of More than Revenue, a book that was recently published by the Inter-American Development Bank (IDB). [...]

What will happen if the cycle crashes?

What will happen if the cycle crashes?

Which country will be damaged most if the price of basic goods falls? In its 2013 macroeconomic report on Latin America and the Caribbean, the Inter-American Development Bank estimates the impact on incomes as a potential percentage of gross domestic product for Latin American countries in the event of a 25 percent reduction in the [...]

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Who likes public-private projects?

Chile and Brazil are the countries most inclined to make alliances with private sector groups. Argentina and Venezuela are the least interested. In assessing the environment for public-private projects in Latin America and the Caribbean, it was found that the lack of infrastructure in Latin America and the Caribbean continues to be at the top [...]

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Obesity. Alarm bells!

Latin America is seen as the emerging region most affected by obesity, a trend that will only get worse in the years ahead. Being overweight and being obese have evolved into a global epidemic. Despite high and volatile food prices, Latin America, surprisingly, has not escaped this reality. According to the latest report of the [...]

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Little financial depth

The financial depth indicators in Latin America show stagnant financing. According to Financial Globalization, a report on global capital markets published by the McKinsey Global Institute, the growth of financial assets has stalled as a result of deleveraging by the banks and their customers in the years following the economic crisis. The news is even [...]

Inequality has been reduced, but not enough.

Inequality has been reduced, but not enough.

The report on human development shows that the region is the world’s most unequal. The latest edition of the Report on Human Development of the United Nations Development Program is titled “The ascent of the South.” This year, it shows that in the last 10 years all countries improved their achievements in education, health and [...]

Latin American exports slowed in 2012

Latin American exports slowed in 2012

According to the latest “Latin American commerce trends estimates 2012”, based on INTradeBID data on international trade from the Inter-American Development Bank, Latin American exports significantly dropped last year. Some countries even showed negative growth during the second half of the year. This explains the 1.5 percent growth in exports during the whole of 2012, [...]

Turning One Billion Tourists Into One Billion Opportunities

Turning One Billion Tourists Into One Billion Opportunities

On December 13, 2012, Latin America received its symbolic tourist number one billion, a Brazilian lady entering Argentina where she was greeted by a special welcoming committee. That billion figure means one out of seven people crossed the borders of their country in just one year,  2012.  Amazing! Also note, that in 1950, the registered [...]

Thumbs Up For LATAM

Thumbs Up For LATAM

It’s a good time for regional companies to pursue a public equity offering. There is a general consensus among North American and European investors that, despite significant macroeconomic headwinds in Europe and China, Latin America is a region with steadfast domestic markets and attractively valued companies with significant growth potential. Also, the consumer goods and [...]

CFO World – Earnings and more

CFO World – Earnings and more

The youngest are in Europe and South America, the biggest earners are in North America and, once again, the ones left behind are the women –in terms of the jobs they hold and the pay they receive. These are some of the results to come out of a survey carried out by Michael Page among [...]

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Multilatinas: A good year for transportation and retail

Multilatin companies had a 5.9% drop in revenue from June 2011 to June 2012. This is the main result that emerges from the analysis of the quarterly Latin Business Chronicle Multilatinas Index. The figure confirms the weakening of economic activity that has been anticipated by most economic analysts, but the Index also shows that clearly [...]

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Education Gap

One way to reduce income inequality permanently and increase productivity in Latin American economies is to improve access to education of the entire population. This has been recognized by businessmen in the region, who have focused much of their effort toward achieving this goal through corporate social responsibility programs. The latest study by Unesco and [...]

Bogota by the numbers

Bogota by the numbers

GDP is larger than some Latin American countries Bogotá concentrates 63 per cent of holdings and companies in Colombia,  that means 1,361 multinational corporations. It is the 6th tourist destination in Latin America. With a GDP of $70.3 billion in 2011,it concentrates 27% of Colombian economic activity. Its 7.4 million population has an income per [...]

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INNOVATION According to WIPO

The World Intellectual Property Organization (WIPO) has been measuring innovation, one of the pillars of growth and development for a company and for a nation, since 2007. It uses a complicated index that takes into account 84 factors.   Latin America placed fifth among seven regions of the world on the index. This is nothing [...]

Maria das Graças Foster, Petrobras’s CEO

A Milestone For Latin American Businesswomen

The appointment of Maria das Graças Foster  to the top job at Brazilian oil giant Petrobras, Latin America’s largest company, is seen as a major milestone for businesswomen in the region. “Maria das Graças Foster  has become the most  important role model for aspiring young women in the corporate world in Latin America,” says Susan [...]

iSTOCK

Traders Cautiously Upbeat About Mila’s Year Ahead

Pulling back from last year’s pre-launch hype, traders remain cautiously upbeat about the 2012 outlook for MILA, the integrated Mercado Integrado Latino-Americano, which in May 2011 linked the Colombian, Chilean and Peruvian stock exchanges. One of the most upbeat analysts is Bulltick Capital Market’s head of research, Alberto Bernal-Leon. He estimates that, separately, MILA’s three [...]