OPENING CEREMONY OF THE VII AMERICAS COMPETITIVESS FORUM

October 3, 2013 - Panama City

• Su Excelencia Ricardo Martinelli, Presidente de la República de Panamá
• The Honorable Kamla Persad Bissessar, Prime Minister of Trinidad and Tobago, it is indeed an honor to have you with us. Your presence is a clear demonstration of the commitment of the Government of Trinidad and Tobago to foster economic growth through targeted investments in technology and education to promote your country´s competitiveness,
• Ministro Roberto Henríquez, Ministro de la Presidencia de Panamá,
• Ministro Fernando Núñez de Fábrega, Ministro de Relaciones Exteriores,
• Honorable Winston Dookeran, Minister of Foreign Affairs of Trinidad and Tobago,
• Ministros y Ministras,
• Autoridades de competitividad de las Américas,
• Miembros de Cuerpo Diplomatico,
• Representantes del sector privado,
• Representantes de organismos internacionales y regionales,
• Sherry Tross, Secretaria Ejecutiva para el Desarrollo Integral de la OEA
• Colegas de la OEA
• Damas y caballeros,

Es un gran honor estar aquí con ustedes en el día de hoy en este Séptimo Foro de Competitividad de las Américas. Deseo agradecer a su Excelencia Presidente Ricardo Martinelli y al pueblo panameño por la cálida bienvenida a esta vibrante y pujante nación.

Deseo también felicitar al Gobierno de Panamá por seleccionar los temas de infraestructura y tecnología para este Foro. Estos temas encapsulan la historia de éxito que es Panamá y dice mucho sobre la visión de sus líderes y del talento de su gente.

When we look across the world, infrastructure is one area that has grown despite the financial crisis, and will continue to grow substantially both across the developed world and the emerging markets.

We know that a country cannot be competitive without the roads, airports, seaports necessary for commerce. Our populations cannot increase their living standards and quality of life without modern health, education, telecommunication, electricity and water infrastructure.

Infrastructure is critical to support inclusive social progress and sustained stability by addressing the most systemic development challenges of today: rapid urbanization, natural disasters, climate change adaptation and mitigation, and health, food and energy security.
Ladies and gentlemen, I believe the road to development starts with a road. In Panama, the road to development began with the Canal !

Sr. Presidente, damas y caballeros,

Panamá es símbolo mundial de cómo una obra de infraestructura de alcance global, puesta al servicio de la humanidad, puede impactar no solo el destino económico de un país, sino también permear hasta el sentido mismo de identidad de una nación.

Pocos países en el mundo pueden decir que nacieron con una vocación global y con el entendimiento de que para servir al mundo se requiere de infraestructura moderna y competitiva. Panamá ha tenido ésto claro desde sus inicios, y el Canal de Panamá sigue siendo un símbolo de infraestructura moderna con vocación global al que aspiran la mayoría de los países del mundo.

Alrededor del Canal se ha desarrollado una infraestructura portuaria y de transporte, logística y financiera de excelencia que demuestra la claridad de líderes y de panameños y panameñas visionarias para hacer realidad ese destino de Panamá de unir y servir al mundo, pro mundi beneficio, tal como lee el escudo de la nación panameña.

Ladies and gentlemen,

The impressive infrastructure progress Panama has made in recent years
comes at a time when there is a global debate about the substantial
infrastructure gap and urgent need to update infrastructure around the
world.

The OECD estimates the need for $53 trillion dollars of
investment to meet infrastructure demands over the next 17 years. This is the equivalent to an annual 2.5% of global GDP. In our hemisphere, according to the IADB, we have an annual investment gap of $200 billion dollars a year, which is creating a drag on economic growth, keeping millions of people in poverty, and preventing our region from catching up to other emerging markets.

Given the increasingly important role of regional and global value chains, our hemisphere must develop modern infrastructure with a regional focus to make our nations more competitive. With a modern, integrated regional infrastructure, our hemisphere has the potential to alter the global economic and commercial landscape. This requires public-private partnerships that have national, regional, hemispheric and even global reach, building on the resources and expertise of companies in different parts of the world.

With governments facing high debt burdens and concerns about limited funding, it is imperative to unlock private sector capital, private sector expertise, and identify new and creative financing mechanisms. Governments and the private sector must also work together to boost infrastructure productivity and to make infrastructure more cost-effective.

Along with the concerning infrastructure gap facing our countries, our human capital and innovation continue to be key impediments to accelerating growth in Latin America and the Caribbean. Though the Americas is one of the most democratic regions of the world, our hemisphere does not enjoy the full range of benefits that other advanced democracies enjoy, in particular in terms of our human capital development, competitiveness and productivity.

We have a deficit of highly trained and equipped people with advanced technological skills to invent and innovate. A chronic shortage of engineering students and scientists continues to impede technological development and innovation. Year after year, our low score in innovation impacts the low competitive position of Latin America and the Caribbean in the Global Competitiveness Index.

It is up to both the governments and the private sector to commit to the future workforce our nations desperately need. Latin American and Caribbean region investments in research and development average 0.66% as a percentage of GDP. In contrast, OECD countries invest on average 2.47% of their GDP. We need to invest in the people that produce inventions and advancements that improve our quality of life for sustained growth and competitiveness.
Mr. President and Madam Prime Minister, ladies and gentlemen, when I meet with CEOs from major companies throughout the Americas, a consistent message I receive is that governments and private sector need regular consultation mechanisms at the national and hemispheric level to discuss business facilitation, market expansion and regional collaboration for energy, telecommunication and physical infrastructure. I believe the time is ripe to call for a hemispheric ministerial dialogue with the private sector for this purpose.

Before closing, I would like congratulate Panama for the successful organization of this meeting and for its commitment leading the Inter-American Competitiveness Network. The OAS will continue supporting the RIAC and the ACF. I am pleased to note that member states have adopted the ten pronciples of competitiveness since 2011 and the report which the OAS presented yesterday reflects this commitment with concrete examples. Let us realize that in today´s global economy Latin American and Caribbean countries are not anymore passive spectators but active players with a growing influence on the global stage.

I am proud to note that a Caricom country will be the next host of this important business gathering. Trinidad and Tobago and Panama are examples of small but vibrant economies. Leaders like Prime Minister Kamla Persad Bissesur and President Martinelli have demonstrated commitment to sustainable economic growth and job creation by promoting investments and expanding markets. The OAS looks forward to working with Trinidad and Tobago towards the eighth Americas Competitiveness Forum.

I thank again President Martinelli and the Government of Panama for their excellent and warm hospitality, and for working with the OAS in strengthening hemispheric collaboration to improve the competitiveness of nations in our Hemisphere.

I thank you.