[Music]
good to all as they just announced me
as they just announced the case in the
topic that it’s my turn to speak today
frontier economy economy
border that surely if many of
you live here in this region what will
understand but many of those who are
present are not from this region or not
they live here and many of those who will see
the video surely are not from this either
region therefore we have to explain
a little bit what is border economy
the border economy makes reference
to that formal and informal integration and
maybe the most interesting phenomenon of
informal integration of a country with or
a region with other countries
locally we are in
a region a province that has to
It is very small and has the characteristic
of having just one million two hundred thousand
inhabitants a small province in
our country in argentina but in
actually if we compare at the level
we are also an economy
pretty small and we have another
additional particularity than 90% of
our
whole are with other countries and not with
our own country with Argentina
but we have more integration more
border with more contact with Paraguay and
brazil which are the two economies the two
countries that are around this
province this makes that despite
have 12 million inhabitants we have
for example if we only count the
major border crossings of the
province of missions we have
approximately 22 million crosses
border in this province
that is 22 times the population that we have
in the province of missions and this does
that beyond exports
formal or formal integration that
let’s have with neighboring countries what
involves the intervention of a
Customs clearance an export with
Customs clearance transport
international insurance and freight and so on
etc
we have to include a huge amount
of issues that are not within
this formal integration but is a
integration in fact beyond
any international treaty beyond
of any agreement that you have with these
countries but in turn we also
we find that this situation that
we believe that it is very own and is
very much in turn very little understood
national level is a situation
shared by virtually all
the regions of the world there is a one country or
a series of localities a region of
some country that has characteristics
similar to those that we have
and that’s why we can actually
learn a lot by observing what it is
what happens in other places and how
we can apply it here based on how they have
faced those challenges
then the border economy is of
that formal and informal integration with
neighboring countries in a place that is
at the border of a country normally
very far from the big cities
now what is the problem they have
these border economies the problem
main happens because from the theory
economic teach us from the books
of the secondary theory theory
economic up to the university or from
international economy also we
they talk about what the goods can be
products can be divided into
tradable or exportable products and
products that are not exportable or not
are tradable or if there are some
products that can be traded with the
exterior and others by their characteristics
do not have this possibility any example
which is seen throughout the textbook
where in this sense is for example is
very difficult for someone who lives in a
capital city of a country think about
travel abroad only for dinner
or for lunch or just to go
hairdresser or to go to the dressmaker or to a
tailor to get some sack or some
dress
it is also very difficult to think about going to
outside only to go to
supermarket to buy some product
that I like and go back to the country of
origin and so it is also in
this same characteristic the materials
of construction that traditionally
they have so much volume and so little value
by weight per volume that makes very
difficult to be exported or imported
that what economic theory tells us
in all the books most of the
textbooks that are studied all
that in a border economy is not
true because all that can be done and
we know the ones that live in these
regions we know that you can buy and
can be acquired on the other side of the
border and we can think of a trip to
outside of just two or three hours and
consume in that period there’s even
some cases in which they leave
only to load naphtha therefore
this implies that economic theory
traditionally not
can not explain how to focus or
how to focus is good and generate
public policies for these regions and
part of this is explained by the fact
that most of the economies
border areas are also peripheral or
they are far from the urban centers
as I said they are far from the
capital cities and therefore they are
realities that are not very taken into
account
but in turn this also makes that
let’s be the regions more
affected by any modification of
exchange rate for any
tax modification because they are going to
be different taxes or
percentages the aliquots that are charged
from one side or the other of the border and
for any modification in the
cost structure that has a
company and that’s why we are the
regions that are more sensitive to policies
economic despite being the least
taken into account because we are the most
far from the decision centers of
economic policies then starting
of this diagnosis and this problem
the question arises of how we face it
to this problem and what are the
solutions that we can observe in
several places in the world and there we have
a number of answers or examples of
which we can learn so much in the
northern border with canada or border
south with mexico from usa many cases in
Latin America
we have many cases in the european union
when it was expanding and regions that
they were not borders
and they started doing border with someone
that had another tax scheme others
what else taxes another currency and so on and
also something similar in what we find
in Africa and in Asia therefore
there are many examples in the world of
which we can learn and to see
what are the potentials because
obviously the great risk that
arises from this is that we say yes
we have a problem of
fluctuations in the exchange rate and today
it is desirable that people buy here
but it is convenient that I buy from
the other sides of the border the
immediate reaction that many people have
is we raise the borders let’s lift
barriers and prevent people from leaving
and go to consume other places and in
reality that makes us as I said today
very sensitive to all these policies what
which makes us perhaps the
competitiveness laboratory or the
laboratory where we can see how
we are good at what we do
pure that we can find in each one
of the countries since we do not have that
barrier of physical distance with the
other countries in the examples that they
I mentioned
today we can find large groups of
answers and the first of the group of
answers points that we have to
divide the question about who the
does what is who is formulating who
is identifying the problem if the
problem is a company or if the problem
it’s society we see it from the
society or from one in the economy in
general if we see it from the analysis
economic micro of a company the
answer is very clear since the
goal of every company is to generate
profitability therefore think of a
border region or think of a
border economy implies a huge
potential only in the region that
We are having 12 million
inhabitants if we think only how much
population there are in the main
main locations of the
not all major border crossings
but the main ones practically
we double that population
and with a higher purchasing power
that we have in the province of missions
then notice that clearly in that
I felt the adhesion from the company if
we consider a trade for example
clearly the decisions
what I should take is to take advantage of that
opportunity that market so close that
has and maybe in these cases generate
it is necessary to generate an investment in
the outside in these locations
border and this is the the germ and
this has been the example or the start by
medium of which many companies have
stuck the great jump worldwide
We can talk about trading companies
retailers textile companies stores
clothes we can talk about agricultural businesses and
there are many other examples that
abound in which just this
border situation and differences
about these economic problems of type
of change and of different schemes
taxes made them make the decision
to open his first place abroad
and from there we have a huge
a huge investment career in the
outside becoming these companies
in leaders in their sectors and this
we can see it in each of these of
these examples that I just mentioned to you
but it is different from the situation to which it is
what can happen in itself what
we consider as a society if we
we consider as in an economy in its
set that way for example
we have to bear in mind that the
society does not seek profitability but
what the economy is going to look for in
set is to maintain the levels of
economic activity throughout the region and
this translates therefore into keeping
the amount of employment that exists throughout the
region or have more and better and in employment and
of higher quality or with better
better compensation better coverage
social and so on what does that mean
we have to think about the whole
of society and not only in the
concrete situation of a company in
particular
in this in this line is interesting
think that we can also divide in
two large groups to the different
different approaches with which
We can address this reality by a
side we can think that each of the
industries economic sectors can
be reflective of economic activity
as a whole or they can be promoters
of this activity what does this mean that
are two tablets terms a little
complex the reflex activities are
those that simply react to the
resources already available locally
they involve more economic movement a
example of this is a public employee
an employee of the municipality or of
any entity public entity any
person who has a salary in this
locality goes and spends his salary in a
supermarket in a kiosk in a
bookstore a car dealership
etc
those are activities that reflect
simply the economic activity that
is already
located if we concentrate
only in that focus if we
we concentrate only on that form of
see the reality the solution before these
economic problems simply happen
for two possibilities pass by lifting
barriers that prevent our
local consumers go out and go to
consume other places or go through
reduce the cost structure that
they have in these these companies implies
lower taxes which of some
way to fund the system
provincial or national municipal public
or sub national according to each country as
has analyzed
and therefore it would have other effects not
so positive and it would end up being a
zero-sum game where each
we would be fighting between us
simply to distribute us the cake
that today exists of economic wealth
in the region another way different from
think the problem is to think about
convert each of these sectors
in driving activities of the
economic activity what does this mean
implies thinking that each of these
activities any of them can
bring resources from abroad to
towards this region and in that way generate
more economic activity to grow the
local economic wealth cake
employ more people with better salaries
what does this mean
this means thinking about that for example
the merchants are transformed and there are
order not only thinking about the
competition on the other side of the border
but think more about the medium and long
term and that is why I insist on this
idea of the competitiveness laboratory
that we naturally conform because
It is the appropriate place to think
medium and long-term policies
this implies thinking not only a
tax issue implies this
obviously it is included but not
it only implies thinking that but
it also implies thinking for example
what are the major trends that
affecting world trade and within
this we are going to be forced to
incorporate the analysis the fact that
according to the projections in the
next 10 to 20 years approximately the
70% of trade employment goes to
disappear by is going to be replaced by
automated processes that involve
implies that local businesses are
they have to decorate or they have to
adjust and adapt that new technology
to be able to grow and to generate
I work like that
ahead of this wave that is
coming it’s no coincidence that in our
country the main company or the company
of higher market value that exists not
produces fuels does not produce oil
it does not produce automobiles nor is it a
industry is a channel of
commercialization
electronic that is well known for
all of you that does that is the great
today’s trade challenge
if we talk about industry seriously
we will have to think about the establishment of
new investments from abroad
towards here and that implies
talk about infrastructure talk about
connectivity talk about energy talk about
product and process innovation
mainly not only products
but almost always more is spoken of
processes that of products and finally
it also implies working in clusters that
is a talk that could be a
little longer to dedicate myself to this but
involves working on all these these
issues involving potentially generate the
arrival of foreign investments to
just generate exports
formally enter more foreign currency into the
region and in this way grow the
cake from the tourism side too
it implies thinking it the way
these same questions of form
different and there are many cases in
examples that I mentioned
before there are many successful cases
some very close to this town
where we see that that locality that
we saw as unfair competition because
had lower taxes they had minors
salaries and it looked like it was competing with the
local economy to certain added as a
new tourist attraction in the region
where we tell the tourist
international that I come to the tourist from
other places in the country that come
can be one more day to the people here
and we take them shopping
on the other side of the border we
we approach and that way also
can you can generate that innovation in
how to think again about tourism this
Of course it also means streamlining
of border procedures implies
product innovation and investment by
course also in different offers
for that tourist who is going to stay more
time because obviously it will not be
24 hours buying but it’s going to
have a huge amount of things
also and we have to give you offer for
this but all this implies thinking
border situation not as a one
problem not as a difficulty but
mainly as a huge
potentiality that we have
we are used to
the region is traditionally seen
border as a region with many
economic problems very difficult to
work where we have more problems and
difficult difficult difficulty to compete
with neighbors but in reality what
we have a huge opportunity to
think about long-term competitiveness
we have two great options we have the
option to build barriers to isolate
isolate us from the world or we have the the
huge opportunity to take advantage of that
integration that cultural closeness that
we have to start the
internationalization and investment
our companies and in that way attract
more resources to the region thank you very much
[Applause]
[Music]
good to all as they just announced me
as they just announced the case in the
topic that it’s my turn to speak today
frontier economy economy
border that surely if many of
you live here in this region what will
understand but many of those who are
present are not from this region or not
they live here and many of those who will see
the video surely are not from this either
region therefore we have to explain
a little bit what is border economy
the border economy makes reference
to that formal and informal integration and
maybe the most interesting phenomenon of
informal integration of a country with or
a region with other countries
locally we are in
a region a province that has to
It is very small and has the characteristic
of having just one million two hundred thousand
inhabitants a small province in
our country in argentina but in
actually if we compare at the level
we are also an economy
pretty small and we have another
additional particularity than 90% of
our
whole are with other countries and not with
our own country with Argentina
but we have more integration more
border with more contact with Paraguay and
brazil which are the two economies the two
countries that are around this
province this makes that despite
have 12 million inhabitants we have
for example if we only count the
major border crossings of the
province of missions we have
approximately 22 million crosses
border in this province
that is 22 times the population that we have
in the province of missions and this does
that beyond exports
formal or formal integration that
let’s have with neighboring countries what
involves the intervention of a
Customs clearance an export with
Customs clearance transport
international insurance and freight and so on
etc
we have to include a huge amount
of issues that are not within
this formal integration but is a
integration in fact beyond
any international treaty beyond
of any agreement that you have with these
countries but in turn we also
we find that this situation that
we believe that it is very own and is
very much in turn very little understood
national level is a situation
shared by virtually all
the regions of the world there is a one country or
a series of localities a region of
some country that has characteristics
similar to those that we have
and that’s why we can actually
learn a lot by observing what it is
what happens in other places and how
we can apply it here based on how they have
faced those challenges
then the border economy is of
that formal and informal integration with
neighboring countries in a place that is
at the border of a country normally
very far from the big cities
now what is the problem they have
these border economies the problem
main happens because from the theory
economic teach us from the books
of the secondary theory theory
economic up to the university or from
international economy also we
they talk about what the goods can be
products can be divided into
tradable or exportable products and
products that are not exportable or not
are tradable or if there are some
products that can be traded with the
exterior and others by their characteristics
do not have this possibility any example
which is seen throughout the textbook
where in this sense is for example is
very difficult for someone who lives in a
capital city of a country think about
travel abroad only for dinner
or for lunch or just to go
hairdresser or to go to the dressmaker or to a
tailor to get some sack or some
dress
it is also very difficult to think about going to
outside only to go to
supermarket to buy some product
that I like and go back to the country of
origin and so it is also in
this same characteristic the materials
of construction that traditionally
they have so much volume and so little value
by weight per volume that makes very
difficult to be exported or imported
that what economic theory tells us
in all the books most of the
textbooks that are studied all
that in a border economy is not
true because all that can be done and
we know the ones that live in these
regions we know that you can buy and
can be acquired on the other side of the
border and we can think of a trip to
outside of just two or three hours and
consume in that period there’s even
some cases in which they leave
only to load naphtha therefore
this implies that economic theory
traditionally not
can not explain how to focus or
how to focus is good and generate
public policies for these regions and
part of this is explained by the fact
that most of the economies
border areas are also peripheral or
they are far from the urban centers
as I said they are far from the
capital cities and therefore they are
realities that are not very taken into
account
but in turn this also makes that
let’s be the regions more
affected by any modification of
exchange rate for any
tax modification because they are going to
be different taxes or
percentages the aliquots that are charged
from one side or the other of the border and
for any modification in the
cost structure that has a
company and that’s why we are the
regions that are more sensitive to policies
economic despite being the least
taken into account because we are the most
far from the decision centers of
economic policies then starting
of this diagnosis and this problem
the question arises of how we face it
to this problem and what are the
solutions that we can observe in
several places in the world and there we have
a number of answers or examples of
which we can learn so much in the
northern border with canada or border
south with mexico from usa many cases in
Latin America
we have many cases in the european union
when it was expanding and regions that
they were not borders
and they started doing border with someone
that had another tax scheme others
what else taxes another currency and so on and
also something similar in what we find
in Africa and in Asia therefore
there are many examples in the world of
which we can learn and to see
what are the potentials because
obviously the great risk that
arises from this is that we say yes
we have a problem of
fluctuations in the exchange rate and today
it is desirable that people buy here
but it is convenient that I buy from
the other sides of the border the
immediate reaction that many people have
is we raise the borders let’s lift
barriers and prevent people from leaving
and go to consume other places and in
reality that makes us as I said today
very sensitive to all these policies what
which makes us perhaps the
competitiveness laboratory or the
laboratory where we can see how
we are good at what we do
pure that we can find in each one
of the countries since we do not have that
barrier of physical distance with the
other countries in the examples that they
I mentioned
today we can find large groups of
answers and the first of the group of
answers points that we have to
divide the question about who the
does what is who is formulating who
is identifying the problem if the
problem is a company or if the problem
it’s society we see it from the
society or from one in the economy in
general if we see it from the analysis
economic micro of a company the
answer is very clear since the
goal of every company is to generate
profitability therefore think of a
border region or think of a
border economy implies a huge
potential only in the region that
We are having 12 million
inhabitants if we think only how much
population there are in the main
main locations of the
not all major border crossings
but the main ones practically
we double that population
and with a higher purchasing power
that we have in the province of missions
then notice that clearly in that
I felt the adhesion from the company if
we consider a trade for example
clearly the decisions
what I should take is to take advantage of that
opportunity that market so close that
has and maybe in these cases generate
it is necessary to generate an investment in
the outside in these locations
border and this is the the germ and
this has been the example or the start by
medium of which many companies have
stuck the great jump worldwide
We can talk about trading companies
retailers textile companies stores
clothes we can talk about agricultural businesses and
there are many other examples that
abound in which just this
border situation and differences
about these economic problems of type
of change and of different schemes
taxes made them make the decision
to open his first place abroad
and from there we have a huge
a huge investment career in the
outside becoming these companies
in leaders in their sectors and this
we can see it in each of these of
these examples that I just mentioned to you
but it is different from the situation to which it is
what can happen in itself what
we consider as a society if we
we consider as in an economy in its
set that way for example
we have to bear in mind that the
society does not seek profitability but
what the economy is going to look for in
set is to maintain the levels of
economic activity throughout the region and
this translates therefore into keeping
the amount of employment that exists throughout the
region or have more and better and in employment and
of higher quality or with better
better compensation better coverage
social and so on what does that mean
we have to think about the whole
of society and not only in the
concrete situation of a company in
particular
in this in this line is interesting
think that we can also divide in
two large groups to the different
different approaches with which
We can address this reality by a
side we can think that each of the
industries economic sectors can
be reflective of economic activity
as a whole or they can be promoters
of this activity what does this mean that
are two tablets terms a little
complex the reflex activities are
those that simply react to the
resources already available locally
they involve more economic movement a
example of this is a public employee
an employee of the municipality or of
any entity public entity any
person who has a salary in this
locality goes and spends his salary in a
supermarket in a kiosk in a
bookstore a car dealership
etc
those are activities that reflect
simply the economic activity that
is already
located if we concentrate
only in that focus if we
we concentrate only on that form of
see the reality the solution before these
economic problems simply happen
for two possibilities pass by lifting
barriers that prevent our
local consumers go out and go to
consume other places or go through
reduce the cost structure that
they have in these these companies implies
lower taxes which of some
way to fund the system
provincial or national municipal public
or sub national according to each country as
has analyzed
and therefore it would have other effects not
so positive and it would end up being a
zero-sum game where each
we would be fighting between us
simply to distribute us the cake
that today exists of economic wealth
in the region another way different from
think the problem is to think about
convert each of these sectors
in driving activities of the
economic activity what does this mean
implies thinking that each of these
activities any of them can
bring resources from abroad to
towards this region and in that way generate
more economic activity to grow the
local economic wealth cake
employ more people with better salaries
what does this mean
this means thinking about that for example
the merchants are transformed and there are
order not only thinking about the
competition on the other side of the border
but think more about the medium and long
term and that is why I insist on this
idea of the competitiveness laboratory
that we naturally conform because
It is the appropriate place to think
medium and long-term policies
this implies thinking not only a
tax issue implies this
obviously it is included but not
it only implies thinking that but
it also implies thinking for example
what are the major trends that
affecting world trade and within
this we are going to be forced to
incorporate the analysis the fact that
according to the projections in the
next 10 to 20 years approximately the
70% of trade employment goes to
disappear by is going to be replaced by
automated processes that involve
implies that local businesses are
they have to decorate or they have to
adjust and adapt that new technology
to be able to grow and to generate
I work like that
ahead of this wave that is
coming it’s no coincidence that in our
country the main company or the company
of higher market value that exists not
produces fuels does not produce oil
it does not produce automobiles nor is it a
industry is a channel of
commercialization
electronic that is well known for
all of you that does that is the great
today’s trade challenge
if we talk about industry seriously
we will have to think about the establishment of
new investments from abroad
towards here and that implies
talk about infrastructure talk about
connectivity talk about energy talk about
product and process innovation
mainly not only products
but almost always more is spoken of
processes that of products and finally
it also implies working in clusters that
is a talk that could be a
little longer to dedicate myself to this but
involves working on all these these
issues involving potentially generate the
arrival of foreign investments to
just generate exports
formally enter more foreign currency into the
region and in this way grow the
cake from the tourism side too
it implies thinking it the way
these same questions of form
different and there are many cases in
examples that I mentioned
before there are many successful cases
some very close to this town
where we see that that locality that
we saw as unfair competition because
had lower taxes they had minors
salaries and it looked like it was competing with the
local economy to certain added as a
new tourist attraction in the region
where we tell the tourist
international that I come to the tourist from
other places in the country that come
can be one more day to the people here
and we take them shopping
on the other side of the border we
we approach and that way also
can you can generate that innovation in
how to think again about tourism this
Of course it also means streamlining
of border procedures implies
product innovation and investment by
course also in different offers
for that tourist who is going to stay more
time because obviously it will not be
24 hours buying but it’s going to
have a huge amount of things
also and we have to give you offer for
this but all this implies thinking
border situation not as a one
problem not as a difficulty but
mainly as a huge
potentiality that we have
we are used to
the region is traditionally seen
border as a region with many
economic problems very difficult to
work where we have more problems and
difficult difficult difficulty to compete
with neighbors but in reality what
we have a huge opportunity to
think about long-term competitiveness
we have two great options we have the
option to build barriers to isolate
isolate us from the world or we have the the
huge opportunity to take advantage of that
integration that cultural closeness that
we have to start the
internationalization and investment
our companies and in that way attract
more resources to the region thank you very much
[Applause]
[Music]
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