MEXICO 2030 BEFORE THE FOURTH INDUSTRIAL REVOLUTION: PROPOSALS FOR PRODUCTIVITY, GROWTH AND SOCIAL INCLUSION. Executive Summary
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1 Executive Summary
2 MEXICO 2030 BEFORE THE FOURTH INDUSTRIAL REVOLUTION: PROPOSALS FOR PRODUCTIVITY, GROWTH AND SOCIAL INCLUSION Executive Summary In recent years Mexico has consolidated important achievements, but it still faces challenges to enable it to take advantage of the country s full potential and trigger economic growth. The Fourth Industrial Revolution, which relates to the generalized digitalization of systems and the automation and merger of technologies, will have drastic effects for the economy and for society in a very short period of time. To this end, leaders, politicians, businessmen, academics and other decision makers must work towards, and strive to ensure this transformation is positive for the country. The arrival of the Fourth Industrial Revolution and the use of new technologies can promote economic and social development in Mexico. However, if we don t adapt quickly and effectively to the coming changes, we run the risk of lagging behind and not being able to meet the welfare expectation of Mexicans. It s in this setting that the CEEG s associates, an organization created in 2004 and integrated by approximately 50 of the most important global companies with operations in Mexico, bring forward this call to action to seize the opportunities rendered by the Fourth Industrial Revolution. This document presents far reaching proposals to achieve economic growth and greater inclusion. It visualizes Mexico in the year 2030 and proposes goals to position the country in the face of the Fourth Industrial Revolution, it highlights our commitment with a long-term investment in Mexico and reiterates our determination to build a strategic partnership with the government, in order to work together towards the economic and social development of the country.
3 The CEEG The Executive Board of Global Companies (for its acronyum in spanish) CEEG, is an independent and autonomous organization that comprises around 50 global companies with operations in Mexico, all of them leaders in their respective sectors, with the purpose of promoting competitiveness in the country. We participate in the following sectors: Aerospace Agribusiness Food and Beverages Insurer Automobile and Auto Parts Retail Trade Consultancy Education Electric Electronic Energy Logistics and Infrastructure Machinery and Equipment Construction Materials Multisectoral Personal Care Products Chemical / Pharmaceutical Financial Services Steel Information and Communication Technologies
4 4 The CEEG is an organization integrated by global companies with operations in Mexico, that promotes the country s competitiveness, actively participates in drafting the national agenda and shares the best international practices. The CEEG brings together companies with a long standing commitment with Mexico, in total independence to political, social or economic concerns. The companies that belong to the CEEG offer services and products of top quality to Mexican consumers, in addition to acting as an agent for foreign direct investment (DFI), generating quality jobs, enhancing productivity, transferring and developing expertise and technology, increasing exports and contributing to Mexico s economic development. CEG S companies represent: 10% of Mexico s GDP 11% of the country s exports 500 thousand direct jobs 1.5 million indirect jobs
5 What do we aim for? Our vision of Mexico 2030 is based on the progress the country has achieved to this day and takes into account the current context, as well as the opportunities and challenges coming into view for the following years, in the face of the Fourth Industrial Revolution and the complex international context. We propose that the country adopts the following goals for 2030, in which CEEG companies will play a leading role:
6 6 How will we do it? To achieve this four goals in 2030 and trigger Mexico s potential, we present the following proposals of priority public policies to be implemented during the coming years, taking into consideration the ongoing challenges and the context of the Fourth Industrial Revolution. Enabling elements and goals in the Agenda Goals Gains in
7 Solid Foundations Macroeconomic Stability Rule of Law
8 8 Gains in Productivity Expand logistics and infrastructure networks and access to competitive energy Improve the adequate implementation of the telecommunications reforms. Trigger electronic commerce. Promote public-private alliances to achieve the commitments for infrastructure development. Improve the use of existing logistics infrastructure through a certification system of "reliable companies". - Align export documents. Improve air freight transport and implement a strategic liberalization of international air freight services. - Extend the fifth freedom. - Implement pre-shipment of goods to facilitate freight traffic. - Identify key airports to become hubs for international air freight. Improve road and rail freight transportation to facilitate Mexico s trade exchange. - Strengthen security. - Guarantee rights of way. Expand and improve the capacity of ports. Develop the Special Economic Zones. Ensure access to competitive energy: adequate implemention of the energy reform.
9 Education and training for the future Innovation and sustainable development: Thinking ahead (Research and Development)
10 10
11 Conclusions The world is on the brink of a technological transformation and Mexico has to adjust its economic model to this new reality. The structural reforms approved in the first half of the administration of President Enrique Peña Nieto are key for the country to transit into a more competitive and productive economy. Mexico must also make a determined effort to strengthen the Rule of Law to create the conditions for long term investment and the welfare of society. The country must keep up the pace and move even faster to continue advancing in the right direction. The ability to compete on the world stage will depend to a large extent on how we prepare and adapt to these changes. The vision of Mexico toward 2030 presented in this document includes specific public policies in strategic areas of the economy, intended to complement ongoing structural reforms. We put forth a series of proposals that, as a whole, can contribute to achieve an inclusive economic growth, increase the productivity of Mexicans, generate competitive conditions and promote investment, thus improving the welfare of society. Mexico has a unique opportunity to successfully position itself in the face of the Fourth Industrial Revolution and trigger the country s potential. If we don t take advantage of this, the country runs the risk of lagging behind and losing competitiveness in an increasingly globalized world. It s therefore time to act and activate the enabling elements to accelerate productivity and generate greater opportunities for all Mexicans. In the CEEG we assume the resolute responsibility to participate with our experience and ability to work with the authorities and the civil society to achieve these goals.
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