Presentation on theme: "1 Monterrey Consensus on Financing for Development UN, February 15, 2008 Molly Pollack, Executive Director, ChileGlobal."— Presentation transcript:
1 Monterrey Consensus on Financing for Development UN, February 15, 2008 Molly Pollack, Executive Director, ChileGlobal
Haga clic para cambiar el estilo de títu 2 Challenges / Goals of Monterrey Consensus Goals: Eradicate poverty /Sustained economic growth/ inclusive global economic system How: Movilizing and increasing use of financial resources through –New partnership /developed and developing countries –Collaboration among all stakeholders –Each country responsible for its economic and social development: important role of national policies
Haga clic para cambiar el estilo de títu 3 And… Regional partnerships Financing for development should be: –Sustainable –Gender-sensitive –Development focused on people
Haga clic para cambiar el estilo de títu 4 What has happened since the MC Improvement in macroeconomic and fiscal policies Increase in flow of private resources to developing countries, although may not be sustainable. International trade has recovered, but new forms of proteccionism emerged Official Development Assistance changed its negative trend Debt indicators have improved
Haga clic para cambiar el estilo de títu 5 C ritical comments on the Monterrey Consensus Growing power of transnational short-term capital flows instead of promoting long term investments The opening of markets could widen gap between rich and poor countries Underdeveloped countries have to compete on the global market with wealthy economies that can afford protectionism policies and subsidise their products Focus on human development is needed Mechanisms to promote investments in low-income countries should be implemented.
Haga clic para cambiar el estilo de títu 6 Mobilizing international resources for development: FDI and other private flows Why FDI is good? Help to accelerate transfer of knowledge and technology Increase employment generation Boost overall productivity Enhance competitiveness and entrepreneurship As a result: poverty reduction and economic growth
Haga clic para cambiar el estilo de títu 7 What should stakeholders do? »Countries Improve investment climate (business friendly environment) Focus on human capital development Promote public/ private partnerships »International institutions Increase support to infrastructure development Support VC and other lending instruments, export credits, etc. Facilitate business contacts Support public/ private initiatives
Haga clic para cambiar el estilo de títu 8 What should business sector do? Business should be more socially responsible –Social and gender sensitive gender –Consider environmental implications of their undertakings (business culture) –Be transparent, reliable –Respect rules –More willing to networking
Haga clic para cambiar el estilo de títu 9 Developments since Monterrey Insufficient political will slowed down the required reforms Current international economic conditions present the spectre of deflation, volatility in capital markets and exchange rates Large and increasing imbalances in the United States economy, and fluctuations in oil prices The Global Microcredit Summits goal of reaching 100 million poorest families.
Haga clic para cambiar el estilo de títu 10 LAC after Monterrey Source: ECLA, on the basis of official figures as of April 2007
Haga clic para cambiar el estilo de títu 11 Developments since Monterrey (2) Opening up to FDI and improved regulatory frameworks have not led to the magnitude of FDI inflows expected Still information on stocks of external assets and debt is especially limited. Some countries have not implemented parts of their macroeconomic and structural reform programmes
Haga clic para cambiar el estilo de títu 12 LAC after Monterrey Source: ECLA, on the basis of official figures as of April 2007
Haga clic para cambiar el estilo de títu 13 Source: ECLA, on the basis of official figures as of April 2007 LAC after Monterrey
Haga clic para cambiar el estilo de títu 14 LAC after Monterrey LATIN AMERICA AND THE CARIBBEAN: COUNTRY DISTRIBUTION OF FDI FLOWS, BY RANGE, IN 2006: Source: UNCTAD, FDI/TNC database
Haga clic para cambiar el estilo de títu 15 Total Factor Productivity Comparison by World Region
Haga clic para cambiar el estilo de títu 16 Chile after Monterrey Introduction of MK1 and MK2 reforms that allowed the complete integration of the domestic stock exchange with the international market and facilitated the development of the Venture Capital Industry CORFO and ProChile become crucial in promoting Chilean exports and investments in Chile Chiles attempts to join Financial Action Task Force (FATF)
Haga clic para cambiar el estilo de títu 17 Chile After Monterrey Country agenda coincides with the Consensus Consensus goal Eradicate poverty, achieve sustained economic growth and promote sustainable development as we advance to a fully inclusive and equitable economic system. The Four Pillars of the Bachelet Government for Development 1.Pension Plan Program Reform for All Workers 2.Education Improvement 3.Strengthening Innovation & Entrepreneurship – A Knowledge Economy 4.Better Infrastructure & Housing for All
Haga clic para cambiar el estilo de títu 18 Innovation as a Key Issue for Development: Public-Private Partnership as the Means –Creation of a National Council on Innovation for Competitiveness Supra-ministerial –Coordinates: Inter-ministerial – inter-agency Includes a select group of the highest representatives of the public, scientific, academia, and private sector. Mandate to develop a country innovation strategy beyond government Creative financing: Mining Royalty Fund Key Cluster Agenda – working with Chiles competitive advantages
Haga clic para cambiar el estilo de títu 19 Public-Private Partnerships for Innovation How do we do it? Fundación Chile Non-profit, privately owned corporation, created in 1976 by an agreement between the Chilean Government and ITT Corporation (USA). In 2005 BHP Billiton became a co founder. Mission To increase the competitiveness of human resources and productive sectors and services, by promoting and developing high impact innovations, technology transfer and management for the country.
Haga clic para cambiar el estilo de títu 20 Working with Chiles Key Sectors Sectors Marine Resources Agribusiness Forestry Human Capital Environment ICTs Technologies Biotechnology Environmental Technologies Fine chemistry ICTs Financial engineering Food technology
Haga clic para cambiar el estilo de títu 21 The Outcome
Haga clic para cambiar el estilo de títu 22 Measuring Impact: Developing Clusters Fundación Chile Model = Innovation + Difussion Salmon Program Industry Production Year Tons US$ M in exports for ,2% of Chiles total food exports direct and indirect jobs created Source: (Informe Económico Salmonicultura 2005, SalmonChile)
Haga clic para cambiar el estilo de títu 23 Exporting the Fundación Chile Model to Region Mexico –Fundación Jalisco –Fundación Sonora Peru –Fundación Perú …networks + public-private partnerships + competitive advantages
Haga clic para cambiar el estilo de títu 24 Networks+Public-Partnerships+Diasporas Expatriates played a crucial role in the acceleration of technological change, business creation and investment capital in countries such as Scotland, India, Taiwan, Ireland, Israel, China and others. –Pioneer investors –Helped attract foreign investment to countries of origin at times when their nations were considered risky –Constitute bridges between residence and home countries for: Market connections Technological transfer Coaching of local business Internationalization of local firms The acceleration of economic growth and development in Latin America requires a boost in its innovative capacity and an upgrade of the stock of qualified human resources of the region. An important pool of talent and human capital of the region is outside its national borders and is constituted by business Diasporas.
Haga clic para cambiar el estilo de títu 25 Diaspora for Development: A Public-Private Partnership - ChileGlobal
Haga clic para cambiar el estilo de títu 26 What is ChileGlobal? An active international network of Chilean business owners and high level executives · and those with an affinity for Chile · who are interested in contributing and sharing the success of the Chilean economy
Haga clic para cambiar el estilo de títu 27 Objectives To help incorporate the country to the knowledge economy To create and promote a mechanism of technology transfer and knowledge exchange, in order to increase network opportunities, access international advice and knowledge for the benefit of Chile while accelerating innovation
Haga clic para cambiar el estilo de títu 28 Sectoral Insertion of Members
Haga clic para cambiar el estilo de títu 29 Developing an Investment Network A network that reaches the entire innovation chain from idea to business –Investing time, contacts, knowledge, and resources
Haga clic para cambiar el estilo de títu 30 Spreading the Model: A Proposition for Multilateral Agencies and countries Creation of regional talent investment network –Private-public partnership –Innovation-based –Sector focused
Haga clic para cambiar el estilo de títu 31 Conclusions and recommendations The Monterrey Consensus has played a fundamental role in the orientation of strategies and policies in the global context and part of the goals have been achieved The rapidly changing conditions and the experiences obtained make necessary to take these facts into consideration Multilateral organizations should promote and support new strategies and successful programs in a massive and regional manner
Haga clic para cambiar el estilo de títu 32 Recommendations Next steps should be more micro than macro –Focus on quality rather than in quantity (foreign investment) –Learn from successful experiences (role of highly skilled diasporas) –Promote actively public-private partnership, using role models (Fundacion Chile) –Support strategies for entrepreneurship (VC) –Promote and support successful programs to incentive entrepreneuship –Promote and support regional networks (ChileGlobal)