Predicting the evolution of any economy is a risky task, because economic mechanisms respond not only to present realities, but also to future expectations, which may or may not materialize. Thus, predicting the behavior, not of an economy, but specifically of the Latin American economy, is risky, because the starting assumptions are complex and multiple, as are their movements and effects.
However, we can begin by saying that the Latin American economy remains on a path of low growth and has not just started or taken flight. A situation that is not foreign to the context of the world economy.
To boost prosperity, it is necessary to take into account the determining factors that make it possible, such as public policies, innovative capacity, productivity, intraregional and extraregional trade, which represent the challenges that almost all economies will have to face, although to different degrees and at different times.
Latin America must enter the path of prosperity and compete successfully in demanding international markets, adopting coherent and integrated strategies. At the same time, it must face major economic and technological transformations, where the terms sustainable and inclusive acquire relevant importance. And all this, in the midst of climate change and the transition towards clean energies that will intensify the demand for natural resources of which the region has a quarter of the tropical forests, a third of the fresh water and half of the biodiversity. of the planet.
The reading that Latin America must make is that it must inevitably take advantage of its advantageous geographical position and its vast natural resources to make a qualitative leap towards processes framed in a culture of permanent innovation, supported by systemic competitiveness policies that improve the framework of an innovative, competitive and sustainable growth model.
Multilatinas, from a broad and diverse perspective, must continue their international expansion, taking advantage of all the advantages, such as those offered by Spain as the “most natural market”, given the historical, linguistic and cultural links, supported by a very important network. of economic, commercial and financial relations, largely woven by the Spanish companies themselves present in Latin American markets (The multilatinas. The new Ibero-American multinationals, CEAPI).
Multinationals will feel very comfortable in Spain, as it is home to the headquarters of important Latin American organisations, which are part of Spain’s commitment to becoming a business and investment centre, as it really has positive and competitive differentiating positions that facilitate access to the markets of Europe, North Africa and the Middle East.
To enhance links and bidirectional relationships, Spain must assume its role as an “articulating” country and as the most effective bridge to develop commercial networks that increase exports, promote investments and enhance scientific-technological capabilities within an agenda of issues. important global issues such as migration, supply chains, the technological gap, the energy transition and climate change.
This bidirectional “round trip” path, that is, traveling in both directions, makes a lot of sense. It is evident that Spanish companies have already done so towards Latin America, and continue to do so. Now it is up to the multilatinas to undertake expansion towards Spain, which is widely perceived with the increasingly intense arrival carried out first by the Mexicans, followed by the Argentinian, Brazilian and Colombian ones.
Latin America in 2023 was positioned as the fourth largest investor in Spain with a stock of 47,743 million dollars, and if investments in Foreign Securities Holding Entities or holdings (ETVE) are taken into account, its volume would be at 66,883 million euros, which represents 11% of the total investment received by Spain. This significant investment volume is distributed among twenty countries that form a thriving business community made up of more than 600 companies. and 47,000 direct jobs (VI Global Latam Report 2024).
Everything seems to indicate that multilatinas in future perspectives will have to face challenges and opportunities, which will most likely put their organization to the test, where the evolution of the markets, together with the quality of management, good corporate governance and business models, Innovation, together with talent in terms of promotion and retention, represent key factors to evaluate their capabilities, both to face challenges and to take advantage of opportunities.
Multilatinas, without a doubt, represent one of the most relevant issues in Latin America. Consequently, they must compete successfully in the global economy, but also achieve a “soft power” (soft power), that is, a persuasive weight in international relations, which generally uses economic and cultural influence to benefit the countries and therefore the region as a whole, which, by the way, has just launched its “global brand”, an initiative led by the CAF -Development Bank for Latin America and the Caribbean.
Overcoming the challenges and taking advantage of the opportunities, to generate more favorable conditions that benefit and promote sustainable and inclusive growth in Latin America, is the most effective contribution of the multilatinas and its leaders. Companies and leaders who face the risks, but at the same time, must seize the opportunities that Latin America offers in the new multipolar world.
As you can guess, the task that is presented is not only challenging because of the fruits that are expected, but also because of the high strategic value of the region that must inexorably highlight it.
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