5th South American CEO Survey

View this page in: Español We are pleased to share with you the results of our 5th CEO Survey - South America with renewed confidence in the future of our region as well as with a recurring feelingtaste of frustration, as once again it is clear we realize that we continue keep to be hampered by having a tremendous opportunity cost. This becomes clear when we compare where we were five years ago with where we are and question where we could be. We believe this comparison is necessary because we may be mislead by the progress achieved if we do not take into consideration the progress that was possible.

During the last five years we had a very favorable global scenario derived from high liquidity and rapidly increasing commodity prices and have also benefited from the undeniable progress in many of ourthe countries regarding fiscal responsibility. This was translated into growth and with it the steady inclusion of new consumers with a very positive impact mainly for those industries whose products are directed to the low income consumers. The resulting expansion of the tax payers bases has further enhanced the improvement in the fiscal position budgets.

Paradoxically, this positive cycle has further stressed the perverse impact of the endogenous problems that have been historically handicappeding our growth, thus creating the aforementioned huge opportunity cost. Such problems are well known: lack of infrastructure, excessive of bureaucracy, excessive tax burden, poor sustainability of policies and regulations, poor qualification of the work force and low use of technology – the last two both deriving from an insane lack of commitment with education. These recurrent, just to mention some of the recurring factors clearly highlighted by the results of mentioned in our survey, which inexorably result in a lack of global competitiveness and attractiveness.

The natural question is:
“If we know what is wrong, if we believe progress and job creation are the vital and only sustainable path towards eradication of poverty, why are we unable to can’t we polarize the stakeholders and fix our problems?”

At the centre of the answer is our historical conception or rather, misconception, of what a republican State is all about . One that places the holder of power and the government ahead of the institution, the State. As a result, we have been historically unable to develop State policies – those which are “supra party politicsies and suprasupra government” and address systematically and synergistically the “national challenges and priorities”. Moving the focus from ensuring the outcome of next elections to ensuring the dignity of the next generations.We must move from the failed vision of “Government responsible for progress" to one of “State as an enabler of progress" . The “enabler State” is one that leverages on the economic agents to maximize the economic and social output. One which delivers efficient core outputs in the areas of Education, Health and Justice, thus promoting citizenship and inclusiveness.

We would like to thinkexpect that the results of our survey can effectively contribute to the awareness of “where we could be” and to the mobilization of all the stakeholders towards a possible better future .

Regards,
Luis E. Frisoni Jr.
Senior Partner of South America