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VIII Americas Competitiveness Forum Analyzes Competitiveness at Subnational Level in the Hemisphere and in Central America

Business experts, government officials and scholars of the Americas today discussed the issue of competitiveness, at the subnational level and in Central America, as part of the activities ahead of the VIII Americas Competitiveness Forum (ACF), which opens tonight in Port of Spain, Trinidad and Tobago, under the theme: "The Human Imagination at Work: Driving Competitiveness, Powering Innovation."

The Organization of American States (OAS), in its role as Technical Secretariat of the
ACF and the Inter-American Competitiveness Network (RIAC), an initiative created by the member states to institutionalize a mechanism for regional dialogue, promote the exchange of experiences and the development of joint initiatives in areas related to competitiveness, supported the organization of two panels: the "RIAC Conference with Experts on Subnational Competitiveness,” and the "RIAC Meeting of Central American Competitiveness Authorities.”

The panel on the subnational competitiveness was divided into two sessions: the first examined the role of governments and regional universities in the development of an ecosystem of innovation and entrepreneurship; the second focused on the role of creative industries as a critical component of economic and social development.

The OAS Executive Secretary for Integral Development, Sherry Tross, recalled that when the Working Group of Experts on Subnational Competitiveness (GTECS) was established two years ago in the framework of the RIAC, “the key objective was to promote subnational competitiveness throughout the Hemisphere by sharing successful local practices; exchanging knowledge and ideas on models and methodologies for the measurement of competitiveness and experiences implementing agendas to help the economic and social development of the cities, provinces, states and regions."

Tross said that after two years of work and following two gatherings in Lima and Montevideo, “I can report that expectations have been exceeded and results are very positive." As an example, she noted that “GTECS has facilitated the sharing of more than 36 case studies and 60 tools and resources, including publications, web-based information systems and toolkits.” The OAS senior official further said that these are methodologies for measuring competitiveness, examples of competitiveness agendas and strategies to promote innovation and investment.

Referring to the ecosystem of innovation and entrepreneurship, Executive Secretary Tross said that the GTECS, held in Montevideo in the middle of the year, prepared the stage for today’s debate. In this regard, she mentioned some of the conclusions reached at the above-mentioned workshop: competitiveness is local, driven by what we do or do not do in each community; innovation is not created in a vacuum or from scratch; entrepreneurship can serve as a tool for social stability and inclusion.

For her part, the Permanent Secretary of the Ministry of Planning of Trinidad and Tobago, Arlene McComie, said that “creative industries and the creative economy are vital to enriching the socio-economic landscape of any country.” “They have diverse potential for increasing our economic prosperity while creating opportunities for greater economic stability in the future,” she added.

Secretary McComie argued that applying creativity, among others, is done increasingly in the fields of science and engineering, resulting in a series of innovations that have radically changed the way we live. She added that for this reason, universities, particularly in the Caribbean, should reconsider the way we feed the labor needs of the countries we intend to serve. She further said that for too long, the focus on traditional subsectors within societies has created rigid structures that inhibit the growth of creative industries.

Governments and Universities

The session dedicated to the analysis of the role of governments and regional universities in the development of an innovation and entrepreneurship ecosystem was moderated by César Parga, Chief of the OAS Competitiveness, Innovation and Technology Section.

The Deputy Director of the Basque Institute of Competitiveness, Ibon Gil de San Vicente, said that traditionally universities have had two roles, teaching and research. Gil added that globalization has made knowledge to flow faster and, at the same time, innovation systems have begun to compete with each other. "Today, it is important for universities to acquire a new vision and focus on improving the region where they are located," he stated.

For his part, the Director of the Competitiveness Institute of the Catholic University of Uruguay, Roberto Horta, indicated that his institute networks, allowing interaction not only with actors associated with the university—public or private—but also with external actors. "Uruguay is a small country and its development clearly requires working with the outside," added Horta, who underscored Catholic University’s satisfaction for having joined the RIAC. "Competitiveness involves creating in a sustainable manner, in the medium and long term, efficient income levels and efficient employment levels in society, and it should seek a fair balance in the distribution," said Horta.

Meanwhile, Rebeca Vidal, Executive of the Department of Public Policy and Competitiveness of the Development Bank of Latin America (CAF), referred to the mega projects supported by organizations such as her bank in the area of ​​public policy. "We make a great effort to generate knowledge in academic projects to create value," Vidal said, mentioning a project aimed at strengthening ecosystems carried out in Ecuador, as a model for integral intervention. Vidal said that as a strategy, CAF focuses on four areas to implement these initiatives: building shared agenda; the educational component; betting on innovative initiatives, and ensuring the project’s funding.

For his part, the Costa Rican Minister of Economy, Industry and Trade, Welmer Ramos, said his country sought to make decision-making more participatory, so it created Regional Competitiveness Councils in which the public and private sectors, academia and non-governmental organizations (NGOs) participate. "This space is used as an interface between the central government and local governments to guide policy to ensure development," he added, noting that these councils make decisions as to where to direct public investment, and on issues such as health, public roads, technical education, and social assistance.

Creative Industries

With regard to creative industries, Executive Secretary Tross stressed the vital importance of this sector in strategic areas such as innovation, trade, small enterprises, tourism, culture, and social development.

This session was moderated by the Director of the OAS Department of Economic and Social Development, Maryse Robert, who argued that the creative economy has become a powerful transformative force in the world today. “Its potential for development is vast and waiting to be unlocked. It is one of the most rapidly growing sectors of the world economy, not just in terms of income generation but also for job creation and export earnings,” she asserted.

Director Robert referred to the report "The Economic Impact of the Creative Industries in the Americas," published in January 2014 by the OAS, the Inter-American Development Bank (IDB) and the British Council and prepared by Oxford Economics, noting that it underscores the important contribution of creative industries in our hemisphere. She added that sector has a higher percentage of youth employment than the rest of the economy.

At another point in her presentation, she said that a much larger proportion of intellectual and creative resources in today’s world is being invested in culture-based industries, which largely intangible results are as real and significant as in other industries. She noted that human creativity and innovation are these industries’ main drivers and have become the true wealth of nations in the 21st Century.

During this meeting, the Executive Director of the National Creativity Network of America, Dennis Cheek, attended the General Secretary of the Secretariat for Central American Economic Integration (SIECA), Carmen Gisela Vergara, Assistant Secretary of Development of the City of Buenos Aires, Carlos Pirovano and Dr. Rosibel Ochoa, Director of the Center for Entrepreneurship at the University of San Diego.

Competitiveness in Central America

During the second event, which was a meeting with Central American Competitiveness authorities, Executive Secretary Tross noted that since the RIAC’s creation and its synergies with the ACF, the OAS has been making efforts to convene meetings between the various competitiveness authorities and councils. She mentioned that in the case of Central America, there has always been a very active and committed representation. She said, for instance, three of the five Competitiveness Forums since 2011 took place in SICA member states. She referred to the Dominican Republic, in 2011; Panama, in 2013; and Guatemala, next year; and added that this shows the great commitment of the region to improving quality of life through its people’s economic development.

Among activities carried out in the region, Executive Secretary Tross mentioned that in 2011 the idea of ​​creating a version of the "Compete Caribbean" program for Central American countries emerged, which was named "Compete Central America.”

The panel was moderated by the Secretary General of the Secretariat of Central American Economic Integration (SIECA), Carmen Gisela Vergara, who also referred to the "Compete Central America" program, and among its objectives, she mentioned seeking increased business production, developing a business climate in the region on the basis that we all need to learn from each other, boosting growth engines and developing trade and investment.

Secretary Vergara stressed the need to increase productivity in Central America, noting that it must go hand in hand with social inclusion.

Participating in the panel were authorities of the six Central American countries and of the Dominican Republic.

The VIII ACF will be inaugurated this evening by the Prime Minister of Trinidad and Tobago, Kamla Persad-Bissessar; the OAS Secretary General, José Miguel Insulza; the Minister of Planning and Sustainable Development of Trinidad and Tobago, Bhoendradatt Tewarie, who represents his country as President pro-Tempore of the RIAC. Trinidad and Tobago is the first country from the Caribbean Community (CARICOM) to host the event.

A gallery of photos of the event is available here.

For more information, please visit the OAS Website at www.oas.org.

Reference: E-428/14