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DIALOGUE BETWEEN THE HEADS OF DELEGATION, THE OAS SECRETARY GENERAL
AND PRIVATE SECTOR REPRESENTATIVES RECOMMENDATIONS FROM THE THREE
WORKING GROUP SESSIONS OF THE PRIVATE SECTOR FORUM:
WORKING GROUP 1:
SKILLS TRAINING, YOUTH EMPLOYMENT AND COMPETITIVENESS
WORKING GROUP 2:
GOVERNANCE, BUSINESS CLIMATE AND ENTERPRISE FORMALIZATION
WORKING GROUP 3:
INNOVATION IN THE GLOBALIZATION ERA
Note These recommendations were prepared by business leaders of the Americas, who met during the V OAS Private Sector Forum held in Medellin, Colombia, on May 29-30, 2008.
WORKING GROUP 1: SKILLS TRAINING, YOUTH EMPLOYMENT AND COMPETITIVENESS
The Working Group was presided by Ms. Brigette McDonald Levy, Private Sector Organization of Jamaica (PSOJ), Jamaica. The following experts helped guide the discussions: Keynor Ruiz from the International Center for Human Development (CIDH), Costa Rica, and Francisco Lara, from the Centro de Participación Integral, Venezuela.
In order to promote the sustainable development and global competitiveness of our countries and face the challenges of job creation and poverty reduction, we recognize the need for long term strategies for education and skills training that ensure the availability of qualified persons that meets the demands of a modern, progressive, forward looking productive sector.
In addition, we also recognize that the design and implementation of such a strategy requires the commitment and coordinated participation of all sectors: governments, private sector, communities, educators, non-governmental organizations (NGOs), academia, young people, workers and the media.
A public-private partnership to promote education and skills training generates value for all:
(i) labour force benefits from increased opportunities for employment, social and professional mobility, to earn a decent livelihood, and to move into entrepreneurship;
(ii) society benefits from increased opportunities to participate in global initiatives as well as from greater prosperity and higher quality of life for their urban and rural populations; and,
(iii) the Private Sector benefits from greater access to a qualified, trainable and responsible workforce.
Based on these considerations, we recommend:
Comprehensive National Strategic Plans for Education and Skills Training
That governments prioritize the development of comprehensive national strategic plans for education and skills training that are long term and based on needs of all stakeholders – Private Sector, government, youth, service institutions.
That both the development and implementation of the plans be participatory, evidence based, adaptable to the needs of the labor market and utilize partnership opportunities with the Private Sector and other sector of our societies.
That the plans be comprehensive, forward-looking while remaining flexible and adaptable to local realities.
Utilizing Evidence for Planning, Monitoring and Evaluation
That situational analysis, including current programs and services and needs of employers—local and foreign-- underpin national and local capacity building.
That mechanisms to monitor and evaluate progress and results, including expenditures of partners and data disaggregated by gender, national/local/ gender and urban/rural, are an integral part of the plans.
A Complimentary Regional Approach
That National strategies lead to the development of regional efforts based on sharing best practices and lessons learned that help promote the competitiveness of the Latin American and Caribbean region as a whole.
Key Elements
That governments ensure that every child has access to quality primary and secondary education.
That governments strengthen partnerships allowing each partner to contribute, based on their strengths, ensuring that the work force is kept updated on the competences required for entrepreneurship and by the labor market:
Private sector: expertise, knowledge and financial support;
NGOs: bridges between the community, the private sector and the government;
Academia: innovation in content and modes of delivery, including direct interventions with communities;
Community: contributing to the design and management of programmes.
That strategies make the best use possible of available technology for enhanced delivery and learning of training and, through distance learning, share specific skills with urban and rural populations, and between territories and industries.
That we equip youth with values and attitudes of citizenship—leadership, respect, responsibility, integrity, and the sense of community— to be successful through in-school curricula and strong mentorship.
That we strengthen internship, mentoring and career guidance programmes for the youth.
Youth
Key, as well, is the engagement of the youth so they are not mere recipients of decisions but rather active participants in the formulation of policies that impact them. In so doing we provide the youth with opportunities to innovate, to create, to be entrepreneurs as well as good citizens and leaders in our communities.
Conclusion
In conclusion, we urge governments to see the Private Sector as valuable partners for the development of our countries as we seek to fulfill our social responsibility, and to increase spaces and opportunities for us to make a valuable and meaningful contribution in education and skills training, youth employment and competitiveness.
WORKING GROUP 2: GOVERNANCE, BUSINESS CLIMATE AND ENTERPRISE FORMALIZATION
The Working Group was presided by Maria Fernanda Campo, President, Chamber of Commerce of Bogota, Colombia. The following expertshelped guide the discussions: Paula Trujillo, Director, Medellin Cooperation and International Investment Agency, Colombia.
A. Governance:
To create and promote a space and mechanisms for accountability, as a tool to strengthen democratic governance, involving the private sector as well as social and academic organizations.
To strengthen processes of social inclusion and the improvement in the quality of life of citizens of the Hemisphere, with the active participation of the private sector in programs aimed at strengthening productive options and therefore at meeting the commitments made in the context of the Millennium Development Goals on issues such as poverty reduction and food security in the Americas.
To urge OAS Member States to strengthen their regulatory framework to guarantee property rights and investment, with a view to improving the confidence of the private sector and promoting competitive conditions in the cities and regions of the continent.
B. Business Climate
To adopt public policies and instruments which help the productive sectors adjust to the new realities of globalization and to further the development of worldwide size productive sectors which promote employment, economic growth and exports.
To strengthen the existing public institutionality and promote partnerships with the private sector, which stimulate competitiveness and a productive environment, and which generate confidence among foreign investors.
To promote programs aimed at encouraging entrepreneurship and the creation and consolidation of enterprises, as strategies to create social capital, to better the quality of life and to improve the security index in the cities and regions of the continent.
To use Information and Communications Technologies (ICT) as tools to support accountability in the fight against corruption.
To promote best practices in corporate governance, transparency and integrity in the hiring process between the public and private sectors, as a key factor in building the trust in the business environment.
To urge OAS Member States to report annually on the actions they have taken to assess the results of the implementation of the Inter-American Convention against Corruption.
C. Enterprise Formalization:
To promote initiatives to simplify and expedite administrative procedures, which generate extra charges in the development of formal business activities.
To use Information and Communications Technologies (ICT) to simplify administrative procedures, such as the program of the Centros de Atención Empresarial (CAE) developed in Colombia by the Chambers of Commerce and CONFECAMARAS, with funding from the IADB and the Government of the Netherlands. This type of initiatives has a direct impact on competitiveness and reduces the risk of corruption.
To simplify tax and regulatory charges which discourage enterprise formalization.
To increase the cost of informality with tax measures and control.
To promote public-private partnerships aimed at developing programs that enhance the economic and social benefits of enterprise formalization, having an impact on the cultural factors of the SMEs, a key sector in the hemispheric economy.
WORKING GROUP 3: INNOVATION IN THE GLOBALIZATION ERA
The Working Group was chaired by Ms. Joyce de Ginatta, President of the Interamerican Entrepreneur Federation of Ecuador. The following experts helped guide the discussions: Ms. Karla Blanco, Manager of Corporate Affairs of Intel Costa Rica; María del Pilar Noriega, Technical Director of the Directora Técnica, of the Plastic and Rubber Training and Research Institute (ICIPC) based in Medellin Colombia; and Mr. Aldo Aspilcueta, Manager of International Programs of Octantis-Business Accelarator of Chile.
The group discussed and approved the following conclusions and recommendations:
Education for Creativity
Education is the basis to build social cohesion. Education should evolve to inspire our youth to create and innovate; improve the learning process so our students can generate critical thinking which is basic to create and innovate.
Consider revising syllabi in secondary and undergraduate programs so (last year) students have more freedom to work on creative, innovative and pragmatic projects which can contribute to developing problem solving abilities, including up to 80% of their time devoted to non-theoretical activities.
Support education, training and research oriented to creativity and innovation.
Translating innovation into tangible economic benefits
Innovation must generate economic value. Inventions that do not benefit their inventor or society are not innovation. The mission for technology is to improve the quality of life of our people.
Financial resources are not the exclusive answer to innovation. An ecosystem conducive to innovation is necessary to create dynamic businesses of high economic and social impact.
-Promote the focused creation of dynamic businesses, linking public, private, national and international projects. Concentrate efforts on pragmatic, business models and services. If inventions have no market they do not support innovation. Consistent, goal-oriented government policies that provide for specific targets, with prices and penalties, and linked to indicators (such as percentage of the GDP) are necessary to develop these efforts.
Innovation is not exclusive of high tech products. Innovations in the area of services are particularly important for countries in Latin America and the Caribbean and should be considered when articulating public policies on innovation.
Promoting Public-Private-Civil Society Partnerships
Promote public-private-civil society partnerships to develop innovation with high economic and social impact.
These partnerships require long-term relationships, with commitment from all participants through programs and projects that are sustainable and involve the ownership of communities.
There is a need to act rapidly, update and adapt to the needs of the market and the existing competition in a globalized economy.
Links University-Industry
Strengthen links between innovative businesses and universities to help students develop ideas or products that solve real problems faced by businesses.
Support innovative university-business-state committees to match knowledge offer and demand.
Consider models of collaboration or open innovation to take advantage of strengths and diversity in the region.
Long-term Public Policies on Innovation
It is urgent to develop comprehensive and consistent long term state policies on innovation as a priority for our governments.
Develop long-term policies 5, 10 and 15 years) with widespread participation of public, private, academia, NGOS and civil society stakeholders to promote industrial, services and agricultural innovation aimed at generating economic returns, reduce poverty and inequality.
Innovation, science and technology should be elevated at the ministerial level.
States play a fundamental role in promoting innovation. Political leadership and coordination of all public stakeholders is key for the state to become a trustworthy partner to develop public polices conducive to successful strategies.
Design strategies which establish the creation and development of inventions and creative solutions as a priority for the public, private and academic sectors. Coordination requires channels of communication between business and universities, mechanisms to disseminate technological offer and business needs, networks and business rounds, discipline to sustain medium and long term commitments, publishing success stories that can serve as a reference for other innovators, think tanks as bridges between research and markets, focused alliances between corporations and R&D laboratories at Universities, idea markets over the Internet.
Develop research and innovation on economic and social policies, best practices to implement medium and long-term public policies on innovation that set clear objectives to benefit our countries.
Revise national system of innovation in the region.
Identify best practices on global initiatives on innovation applicable to countries in the Americas.
Tax Incentives for Innovation
Create tax incentives for corporations to invest on innovation which results in concrete solutions that respond to the needs of the market.
Potential options to implement these tax incentives include the use of a percentage of taxes generated by corporations to support ongoing projects or programs of established technological institutes in collaboration with the business sector to result in concrete solutions.
Consider these incentives as an investment with accountability, transparency, specific targets and monitoring for compliance. Invest in those sectors where bigger and wider economic and social impact is likely.
Develop markets and mechanisms to connect inventions, development, financing and products and services in the market.
Develop a system or comprehensive agreement on knowledge and technology in the Americas that includes all the stake holders in the innovation chain such as research and development centers, inventors, business incubators and accelerators, financing sources, commercialization and marketing.
Develop mechanism for ministries, investors, innovators and relevant stakeholders to find and channel, in an expeditious and efficient manner, non-refundable sources of financing for innovation. Explore mechanisms such as auctions, virtual markets and other tools to match knowledge and markets.
Legal Framework
It is important to develop clear legal frameworks that generate trust and allow for the development of inventions, facilitate public, private, national and international ventures and partnerships. This involves establishing rules that make possible licensing of technologies, the negotiation of binding non-disclosure agreements, programs for collaboration of academia, research and business sector.
