Financing + innovation = Productivity in Latin America
Underdeveloped financial systems delay decisions to grow and reduce the rate of innovation, which results in smaller, less internationalized and ultimately less productive companies.
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The levels of access to credit, intermediation margins, and other measurements that are part of the index of financial development Prepared by the IMF, still show poor performance in most of the countries of Latin America. The above results in a worse selection of companies in the economies, a greater prevalence of small companies, less integrated into the global markets and with lower capacities for innovation, which partly explains the low levels of productivity in these countries.
Latin America needs to design and implement an agenda of institutional reforms with a focus on productivity. In the case of the financial system, adjustments are required in some regulatory aspects such as bankruptcy procedures, which for example in Brazil have had an impact on the better functioning of the credit market. Inclusion and financial education is another aspect in which the region has much room to improve. This would allow not only an expansion in the users of the financial system but also a better use of the available instruments.
“Taking into account the potential benefits of inclusion and financial education, institutions such as CAF "They are promoting programs to collaborate in measuring the levels of financial education, as well as with the implementation of programs that seek to increase inclusion and capabilities in this matter in the countries," he assured. Luis Carranza, executive president of the institution.
Financing plays a fundamental role in companies' decisions to grow and innovate with a positive impact on productivity and the economy as a whole. This will be one of the transversal themes that will be addressed in the CAF Conference: Productivity and innovation for development, which will take place on November 7 and 8 in Bogota Colombia.
This Conference will have the participation of Jose Manuel Restrepo, Minister of Commerce, Industry and Tourism of Colombia; Jeffrey Kratz, general manager for Latin America, Canada and the Caribbean at Amazon; Kyoo Sung Noh, president of the Korea Productivity Center; Federico Gutierrez, mayor of Medellín, Ric Gros, CEO of METS Ignited (Australia); Dyogo de Oliveira, president of BNDES (Brazil); Sebastian Sichel, Executive Vice President of CORFO (Chile); Jorge López Lafuente, president of the Jala Group (Bolivia); Maria Lorraine Gutierrez, president of Corficolombiana; Oscar Cabrera, executive president of BBVA Colombia; Rocio Fonseca, Innovation Manager at CORFO and former Executive Director of Start-up Chile; Fernando De Fuentes, president of Anima Estudios (Mexico); the colombian chef Leonor Espinosa, Luis Felipe López-Calva, regional director for Latin America and the Caribbean of the UNDP; Jose Manuel Salazar, regional director for Latin America and the Caribbean of the ILO; Carlos Heeren, executive director of the University of Engineering and Technology (UTEC, Peru); and Eduardo Levy, dean of the School of Government at the Torcuato di Tella University of Argentina; among others.
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