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OAS Supports Impetus toward Competitive Agenda of MSMEs in Latin America and Caribbean

During a regional workshop organized by the Organization of American States (OAS), ministers and those responsible for the portfolios of micro, small and medium enterprises (MSMEs) in Latin America and the Caribbean reaffirmed their commitment to promote an agenda of competitiveness in the region. The event was held in the framework of the annual meeting of the Association of Small Business Development Centers (ASBDCs) that concluded today in San Antonio.

Participants in the workshop—organized by the OAS Department of Economic Development, Trade, and Tourism, and titled, “Innovation and Information and Communication Technologies (ICTs) for the Productivity of Micro, Small and Medium Enterprises (MSMEs)”—agreed on the need to promote policies and programs to address the low levels of innovation and use of ICTs in the SME sector.

The meeting, which sought to promote the exchange of experiences in support of competitiveness of SMEs, included the participation of experts from Israel, Singapore, Brazil, Chile, Mexico, and the United States. Countries of Latin America and the Caribbean occupy an average position of 83 out of 133 countries in the Global Competitive Report, and their MSMEs contribute less than 5% to exports.

The authorities discussed the importance of collaboration to replicate successful experiences such as the Brazilian Micro and Small Business Support Service (SEBRAE) and those of the Office of Small Development Business Centers (SBDCs), both of which already have had excellent results for SMEs. Based on the experiences of Brazil, Mexico and the United States, the OAS will support the promotion of innovation as well as the use of ICTs in close alliance with government, businesses, and universities.

Despite the fact that many of the region’s governments prioritize the competitiveness of these types of businesses, governments require a reinforcement of efforts and must rely on clear strategies to promote a culture of innovation and technology in SMEs, and thus move from MSMEs of survival to a greater number of MSMEs that are competitive vehicles of economic growth.

“Considering that in the hemisphere there are around 120 million SMEs that generate close to half of the GDP and more than three fourths of employment, we cannot deny that concentrating our energies on these powerful motors of economic growth and employment will result in a benefit for everyone,” declared Jorge Saggiante, Director of the OAS Department of Economic Development, Trade, and Tourism.

The participants agreed that countries in Latin America and the Caribbean cannot fall behind other regions of the world. The governments in the European Union (EU) already adopted the Strategy of Lisbon in 2000, which identifies the areas of key reform to make the EU the most dynamic and competitive territory in the world. Asian countries, among others, take the subject of economic competitiveness very seriously and have activated a whole machinery to boost productivity in their economies at an accelerated rate.

The OAS, which supports the region’s governments in the consolidation of an agenda of regional competitiveness for MSMEs, reported that the conclusions in San Antonio will provide key input for a dialogue between authorities and committees on competitiveness in the Americas to take place in Atlanta, Georgia, on November 14. It will debate the importance of outlining plans to improve the levels of competitiveness in the economies of Latin America and the Caribbean.

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

Reference: E-346/10