 Good afternoon, we are coming to the end of our very intense and productive meeting. I would like first to thank our co-chairs who are here on the panel, Mr. Adwani, Marcos Kulgoroni and Eduardo Elstein for providing us with guidance during our discussion the last 36 hours. I have the great pleasure in addition to greet the people who joined the panel, Sir Michael Reyk and Sir Michael, you really made a special effort after your flights were cancelled, so we appreciate your participation and as the representative of the host country from the government, Marcos Pena, the chief of the cabinet of ministers of Argentina. In addition, we will be moderated by Gabriele Frias, the closing session, and the very closing words will be my colleague, Philipp Reuslaw, to close the session. But I have also two other special guests, very honoured guests whom I will introduce in a moment because they will make a very, for us, very important announcement, Governor and Minister. But first, I was thinking how to summarise my own impressions of this meeting and instead of giving you a summary of all the multiple sessions and many impressions, let me just refer to one special meeting which I will not forget very soon. It was the meeting this morning with the global chapels, with the young generation. And if anybody had any doubt about the future of Latin America, he should have participated at this meeting. There was such an entrepreneurial strength and what was particularly also important for me is to show how this generation is future oriented and how this generation is eager to serve society. I would argue in the future the dividing line in societies will not be any more between the left and the right. That's the past. The dividing line in the future will be between those who embrace the future and who knows that sometimes to build a great future you have to make short term sacrifices. Like every entrepreneur usually has to do. So to be future oriented is not a matter of age. I have also met many business leaders, many among the people here in the audience who really will join forces to create a great future for Latin America. I have one, just one thing to add. We look very much at the government to undertake the necessary reforms to be responsive and responsible but also we business leaders in times which are so driven by fast change. I think we have to be responsive and responsible. We also have to fulfill our obligation to interact with those who feel left behind in this fast changing world. Now my main task this afternoon is to welcome Governor Gerardo Alcmin, the governor of the state of Sao Paulo and governor I spent the first two days of this week in Sao Paulo and I have to say as since many, many years I'm always so impressed by the vibrancy of the city and actually coming from Switzerland I'm somewhere jealous because I noticed that the state of Sao Paulo has a bigger cross-national product compared to Switzerland and you would deserve as a state to be actually part of the G20 and I also have the great pleasure to welcome and honor Minister Marcos Pereira, the Minister of Industry, Foreign Trade and Services of Brazil and I think you were participating at a ministerial meeting this morning which included the ministers of trade of Mercosur and of the Pacific Alliance and as far as I hear the spirit of the meeting corresponded exactly to what we discussed so often here the need for the region to grow together and to create one powerful Latin America. Now, Governor Meijer asks you to join me here and minister and to announce important news. I would like to thank Professor Klaus Schaaf, I would also like to greet and Minister Pena, I would like to greet you all ladies and gentlemen we are so happy to be in Buenos Aires at this very important meeting and let me stress the enthusiasm that we perceive as part of the youth participating here the future is starting today and its name is youth we are very happy to see the effort for youth to take more active part in political life and in all activities let me say that we are really very happy and very much honored by the presence of the minister as well and we are very pleased to announce that be hosting the World Economic Forum Latin American Sao Paulo next year you will all be very welcome to Sao Paulo we have the Latin American Memorial a very important cultural venue which looks to all of Latin America Sao Paulo is a cosmopolitan city and I like to joke by saying that Sao Paulo is the land where the Japanese speak Portuguese with an Italian accent so very welcome to Sao Paulo thank you very much thank you governor professor Schwab I would just like to say a few words because I think the governor made the great announcement which to us Brazilians and residents of Sao Paulo the state of Sao Paulo is very important we are very happy and very proud that the World Economic Forum of Latin America will be hosted next year in Sao Paulo the this is my third edition of the Latin American forum the first time was in Medellin Colombia last year the second time was in Davos in January this year and this is a third time so we'll certainly be together at the fourth edition Sao Paulo so congratulations mr governor congratulations professor Schwab on choosing Sao Paulo and governor thank you for this opportunity and this morning we talked to president Michel Temer on the phone and he confirms that the federal government will also be committed to this edition of the World Economic Forum on Latin America on Latin America I also talked to my colleague the minister of foreign affairs Aloysio Núñez and as professor Schwab mentioned we have just concluded a meeting of Mercosur and the pacific alliance countries and all of the brazilian diplomatic co etamirati and the foreign minister allows me to say this we are committed to welcoming the members of latin american governments as well as the representatives of the productive sector out of academia in Sao Paulo which is our native town our native city thank you very much we are ready to start good afternoon and para veins governador we're going to Sao Paulo so we're happy for for our friends from Sao Paulo and the region to host 2018 Sao Paulo the world economic forum meeting and welcome welcome to our closing plenary to reflect on the theme of this meeting fostering development and entrepreneurship in the fourth industrial revolution i'm happy to have a fantastic group of panelists to close this session general dorky the governor of sao paulo and host of course of the next world economic forum latin america also ashish alvany president chief executive officer from jay worldwide usa also i thank you very much sir michael rake chairman from bt group united kingdom marcos peña chief of cabinet of ministers for argentina representing of course Buenos Aires thank you so much we have had so such productive meetings marcos peña i also want to thank Eduardo elstein chairman irsa inversiones y representaciones argentina and last but not least marcos vulgaroni executive editor director from pan american energy argentina so we have three co-chairs present in this meeting so the general question is what will be your takeaway from these three days but the more specific question what are the leadership imperatives for governments for business for industry who wants to start marcos well i'll start then first of all i would like to thank the world economic forum for having chosen Buenos Aires this meeting was very important for us because it was a long time without being close to the world without the opportunity to have this kind of meeting and i think this leads to the response to the question just asked and in the same vein as professor shah i think the first learning after this meeting and also in terms of what we need going forward is the full conviction that we need to embrace the future we need to embrace the time we're living in we need to have a positive attitude in light of the tremendous changes taking place but we are convinced that a more integrated world with a more interconnected humankind with more integrated free societies and more democratic will make mankind our region and our country better and we are in the midst of that transition process as a country that was basically closed down and that is now discovering that the world is an opportunity rather than a threat but this requires leadership on the part of us all to tap into the potential we have as a country and region i would also like to thank professor shah the forum and mani sol for organizing this meeting one of the things i take away from this meeting is the fact that the world has changed so much in terms of for example the relations that the us wants to have with the rest of the world on the trade front and in particular with latin america also brexit and europe which has changed a lot and that to us and our region poses a great challenge but also means a great opportunity so the discussions at the forum have centered around the opportunities we have as a region and that we need to take advantage of which means that both regional blocs mercosur and the pacific alliance need to find ways to strengthen that relationship and to start walking the way together there's also this need for a new willingness to redesign mercosur and there is a new impetus there i think that gives us a great opportunity as part of which argentina and brazil and paraguay and uruguay are in sync again and finally we need to mention the importance of starting to increase inter regional trade as well considering the doubts and uncertainties with regards to the united states i think there's a great opportunity for us at what well stand please when you just referred to imperative leadership i thought um what is a true leader a true leader is the one that boosts others and isn't it quite something to have this meeting in bonus irons we are proud to have managed to get it to come to bonus irons and with so many representatives of the youth leaders and if there's one thing i admire professor schwaab it's not just gathering the most select representatives of business and political power it's about discovering young leaders and when you talked about leadership i was thinking about this new phase in argentina it's over 33 years of democracy now and my first foreign investor said to me that the argentines work the way things happened in the malvinas island the only ones that stood out were the ones who acted on their own the pilots but the logistics they couldn't get right they couldn't coordinate that and i think it is a great privilege for argentina to have a president that has been the president of the most popular football club in the country because sometimes working as part of a team working as the national coach working to get people to work together as a team yields a lot more results than if you work on your own and today i saw representatives of congress governors ministers and i felt that it wasn't just about rhetoric i got the feeling that things are working so the fact that the forum is here was a true effort because for decades we were wondering when it would come to argentina so having the young leaders i think also gives us a big boost thank you the economic forum what's your takeaway what are those leadership imperatives yeah so i mean briefly is is you asked us to be um first of all leadership is really important political leadership business leadership has never been more important because we have to again make the arguments for globalization for free trade we have to recognize the facts of hundreds of millions of people taken out of poverty of creating new markets for the west of developing medicines of investment right across the world and we have to remake these arguments and they complex because we also have to recognize that society has begun to lose its trust in the establishment right across the world and we saw uh professor schwa before the davos review edelman survey that showed that the people have lost trust in the establishment by which they mean politicians business leaders the established media and indeed ngos which kind of wipes out davos as a new you know in that sense and clearly you know we've seen this in some of the populist movements and the way they operate we've seen this depending on your point of view politically where people who felt left behind by globalization left behind by industrialization left behind by technology have kind of rebelled and we have to understand that i think that's a very important part of brexit which is a long subject of its own but is uh you know for many of us a deeply saddening uh experience and we do need to remember that the whole point of the european union was about peace you know we've had the longest period of peace and prosperity in europe's history and it would be very unwise to take any line that directly on directly damaged that but again we see right across europe concern about immigration we see protectionism we see jingoism we see things that are deeply unattractive and we really have to together business politicians work together to lead and once again make the arguments for a liberal open society thank you so speaking from the perspective of civil society i think what professor schwaab said about social entrepreneurs was my big takeaway from a leadership standpoint you know leaders have to think forward potentially very forward and social entrepreneurship is now firmly part of civil society i think we should recognize that and they speak with a voice like a like civil society has and to have them at this conference was wonderful but to ensure that they get the funding they need to scale i think this is an opportunity for good leadership in latin america to be ahead of anywhere else in the world to arrange for the impact investing to help social entrepreneurs scale so that was my big takeaway thank you very much that was my general question but i wanted to divide the rest of our conversation into the main topics that we covered during these three days and of course key right now is the fourth industrial revolution for the entire region how do we make it an asset and not another gap that we need to bridge so technology is not going equalize the playing field your policies government policies are going to make the difference so how do we make sure technology reaches everyone and everybody can understand it and use it properly marcos peña would like to hear your opinion i think there are two dimensions to this one relates to the challenge of inclusion in a highly unequal society this is a region with vast potential but with huge inequality and high poverty levels which means that changes have different impacts on different segments of society so we think one of the key pillars as part of that dimension is linked to the challenge in education education as a challenge that should not have to do with any nostalgic approaches it should be targeting the 21st century regarding technology as an ally but also considering this is a human process where teachers families and the educational community have a very important role to play another key pillar has to do with the tensions in democracy obviously technology and changes in communications are also bringing tensions and challenges to democracies in our region but they also bring opportunities however it is very important for political leadership in these areas and for social leaders as well to be able to grasp that this world that has changed and this society that has also changed needs institutions that must also change our institutions were designed for the world that no longer exists and on top of it there's still the institutional weakness as compared to developed countries if we don't resolve those structural issues it'll be harder to develop with equal opportunity and inclusion and finally there's the main challenge for economic policies especially job creation policies and policies on territorial development thank you on the youth so we can include you know their opportunities but also the youth in the region there's a young it's a young continent we talk to many global shapers and of course they have so much energy professor Schwab just attested to that and the question is how are we going to listen to them better Ashish you work with the youth so we work with youth we spend our entire time listening to them but from the perspective of the region and this conference you know the world economic forum has a global shapers survey which surveys youth in many countries I'm sure over a hundred countries and there are very concrete lessons that one can learn from listening believe it or not to youth and I think packaging the results of surveys such as that to inform the agenda of this conference but also policy making I think is an opportunity we should take full advantage of governor to governor Ikeem trust has been of course repeated subject at this meeting but also clearly looking at Brazil it's an important it has been an important issue so how do we make sure that the young generation trust the older generations and older generations also open that door for younger generations which is a big issue in the region well we've had an important demographic change in our countries which were young countries in the past and now our mature countries headed towards the old age segment so we've had a major demographic change change Brazil is now working on a set of reforms including a social security reform the other reform is on labor so we have laws dating back to the past century for a world in which employment will be the major challenge technology brings unemployment as well agriculture mechanizes industry robotizes there's automation there so the big challenge for the world will be the issue of employability so I think the old approach to education is no longer good because now we have far space in jobs Sao Paulo is the largest sugarcane producer in the world and those who used to cut the sugarcane have disappeared because now there are precision technologies that can take care of that or this big data in agribusiness of course that also brings opportunities new jobs with innovation research development and our region Latin America can't fall into the trap of populism and isolation the way to go is consolidating our democracies seeking competitiveness and strengthening foreign trade opening up to opportunities in the world at large education and openness is part of the of the of the solution but Eduardo you also work with the youth so an interesting example is Porta 18 what can you tell us about exactly are the solutions to include incorporate open those opportunities I am surprised that you mentioned Porta Di Cioccio it's one of the projects we are very proud of we open a house in a middle-class neighborhood where we receive a group of thousand mill mill a thousand children that receive technological education and training outside school hours at the in our company we are convinced that the business that acts in its environment in its neighborhood in its country has a great impact we've done so for 20 years with a low level of dissemination of what we're doing it's not the only project there are children that have better technological capabilities now than when they graduate from school and they asked us to replicate this model in a hundred other places so we said no since we are conservative we'll do it to in tools or threes education and entrepreneurship has been an objective for us first we contributed to junior achievement but when we gave a larger step forward we worked through and the endeavor foundation that was created in Buenos Aires 20 years ago which was to provide opportunities to entrepreneurs identify them give them seed capital push them to go out to the capital markets and I think one of the strongest things in all this was the process of selecting the give back capacity give a gift through selection and then a decade later donate for other entrepreneurs to be empowered it's one of the foundations that's been more more gratifying to me because at a time of crisis for instance with a volcano in Bariloche the volcano eruption for a whole year the hotel was empty so we sent out nights at the hotel as a gift and the entrepreneurs phoned and said couldn't we all go together there were 25 of them and six years ago we met for three days there to speak to the young entrepreneurs business persons and for me to find young social and business entrepreneurs is to think of Argentina in the long term so investment in education and entrepreneurship has been ongoing throughout two decades the use to a big challenge in the region which is how do we overcome the over dependency on commodities how do we stop only not looking only at the ground but also looking at the people that talent and use our commodities as a means to an end and more than what we've done have we learned the lessons from the past and I think it's a good question for you thank you let's see I believe that what you mentioned about depending on commodities I would look at this within the context of cycles in oil as well as in many other industries and commodities we have ups and downs in the cycles and we are used to that and always I wouldn't say always but one of the solutions that the industrial sector has found is to focus on competitiveness because ultimately once the down cycle is over one has to be more competitive to raise again so competitiveness is a term particularly in our region that makes us think about efficiency and efficiency can be misinterpreted as a problem of destruction of jobs so or of creation so we have to address this more smartly because it's not a matter of a zero sum one or the other but instead we have to solve the issue of competitiveness by creating jobs and by being more efficient a practical example is what president mackree brought along as a challenge to assist here with vaga muerta he undertook the responsibility of energy in argentina and he set the challenge of being more competitive and what he provided us with was a very very important framework that is dialogue it seems very trivial but it's a very powerful tool and what he did was to create forums for dialogue very similar to what this forum does where all sectors come together trade unions companies provinces and the national government and through dialogue and sometimes by asking difficult questions we find solutions solutions as to greater competitiveness through efficiency and more employment okay i know i thought you had i thought you had a comment you do no sorry i i didn't know you appointed no i i just wanted to make one point about technology and i think we all understand how much technology is done for us in many many different ways not just the smartphones that we all rely on but about clean water in india about the environment about increased competitiveness and productivity about the ability to treat our planet more effectively how we can use you know all the things about smart grids electricity all has been fantastic and on the other hand we do have to understand things like the wto put out a report that says that half the manufacturing jobs in the united states for example could be lost to robotics and ai within the next five to ten years and then we came back to marcus's point we have that in the uk certainly and in many western countries we're in a digital world where we're not giving the right education to our children to our young people and that's critical otherwise we've got bigger problems coming whatever the value of technology which we need to do things cleaner better efficiently but leaving people without the right education without work is going to be a huge problem much bigger than any border problem or war is going to solve in terms of cross border trade i would also like to add that our region has a characteristic of exporting very qualified human resources to develop countries with an important possibility to adapt to change because of our institutional weakness and the level of development we've been factories of resilience to big change and our challenge now is to see how to generate stability in our countries to better harness that talent because we're going into a cycle of great volatility and instability so that's a competitive edge we have our human resources which we have to turn in a competitive edge for our countries everyone agrees that we all have to invest in education we all have to invest in the skills in education which build adaptability learnability self-efficacy i think we all use different terms which make young people and adults more resilient to the change that's coming the question is what's the ratio of an investment in technology versus an investment in this type of education and i think we're still learning what that ratio should be but i think the very least we should start tracking that ratio because it is out of skew and we've got great institutions in the room this is a this is a rare opportunity to talk to this type of of an audience but i guess my call to action would be to start to look at that ratio and concretely try to improve it thank you let's talk about geopolitical the geopolitical political context and also the fact that argentina right now is hosting the world economic forum but next year argentina will take over the g20 presidency how can you use the g20 to put the region's priorities at at the global in the global agenda what would you say we have several challenges ahead starting with this meeting then we have the wto ministerial meeting in december and what we wish to have expressed is the voice of the region not only of the country and we are going to work work towards that we've spoken to idb to the andean development bank kaff and to the integration institutions in our country and in our neighboring countries to generate an interactive process of dialogue not only among governments but also with a private sect and civil society of this first south american g20 what voice would we contribute to the world we're living in and also to consider it a challenge of pedagogy and debate within our country within this crucial opportunity of understanding this is an opportunity and not a threat we are working on that we also have the youth olympic games to be held in Buenos Aires next year all these are opportunities for a country that sometimes lacks that self-esteem to realize that it can play in the world class level and many times because of insecurity we end up by living our failures i believe that what our chief of cabinet minister has said is part of training to welcome this group is part of our training and wto too but to lead the g20 together with canada leading the g7 is a unique opportunity because we are at a stage where opportunities are given signals of non-isolation or little isolation and the personal contact personal relationship of the president's chairing both groups g7 and g20 next year i think will somehow contribute to the leadership of the region so the leadership of argentina will be very important g20 as you might remember in baden baden during the g20 meeting the the world's biggest economies dropped a long-standing public endorsement for a free trade i'm sure you remember that it made it made headlines so our question for you is there's this seems to be the perfect opportunity for argentina to make a push at the international stage and bring it back will we bring back that long-standing commitment to free trade should we i believe this is a multilateral matter it can't be an imposition the presidency of the g20 cannot impose a document as neither could germany we are clearly going to advocate for the value of free trade and of a greater integration of our economies and also particularly from the standpoint of the developing countries that many times have been leaders of openness in our region not particularly argentina yet we have to hold a debate on how to have more inclusive global trade with greater opportunities for all that will no doubt be a priority very much linked to the priority of job creation quality job creation that is sustainable from the environmental standpoint and for our country for the next generation that is at the core of the debate of what world we want and of course the democratic values when these populist threats are there this can be at risk but that is a path for the future is it only a commitment if you want to be represented at the g20 accurately should should the region have that push for the free trade enunciation in a statement to be represented would you say to be fair to the to the g20 i think actually they didn't walk away from free trade they talked about fair trade yes rather than defeating protectionism so there was a real concern about the the degree of support for ensuring we don't do damage to ourselves through protectionism so i think that that was perhaps more the point i do think you know that the whole question of really understanding what we mean by free trade and globalization how we get the balance right and we probably do need at a country level sometimes and at a business level to understand there have been occasions whether it's in the rust belt of the united states whether it's in the coal mines of south wales where people have been left behind for generations i mean recently just to give you an anecdote that really shocked me in bt through our mobile company ee we have a call center in a place called mirtha tidville since south wales was a coal mining center and we've built up about 800 people there all the people we recruited in mirtha tidville were third generation unemployed living in the same house the level of mental illness in mirtha tidville is four times the national average so we all at a political level at a business level you can't let those things happen otherwise you get a political backlash which is i think a little bit what we've seen how about gender moving on gender also is a big issue in the region and opening up the spaces the just closing that salary gap among many other possible solutions to acknowledge and also empower women as a power as a potent you know economic agent and also for development what's your takeaway i have a very special reason for starting to look at this i have a vested interest you see because i have two daughters so i'm very interested in the matters of gender and if i take a critical look at the oil industry which is a rather male chauvinist community because women are underrepresented in it i started to look at what initiatives that were in this regard and i found there are quite a few of them unfortunately it is all only just taking off but you see the issue of the low levels of participation of women in industries like oil has a lot to do with education how many women engineers does the educational system produce and that has a lot to do with a number of professionals who reach the highest positions in companies so from our humble position as individuals working in the industry we are taking steps the oil industry has got together to look at cbs or rather curricula in universities to encourage women also to study engineering and eventually become leaders i would also add the importance of empowering women for greater participation in all economic activities in brazil that's just what we feel the presence of women is increasing on all fronts and i would particularly stress in our region the concern with regard to violence perpetrated against women unfortunately latin america is one of the most violent regions in the world the issue of drugs is a serious problem throughout a region and the matter of public security is particularly significant in south paula south paula we managed to reduce the murder rate from 30 35 to 8.2 per 100 000 inhabitants and we have worked on improving all laws in order to strongly punish violence perpetrated against women in brazil in our state and throughout the country so the gender focus is important and one aspect of this is ending and punishing violence against women thank you i'm i'm i'm so glad that you said that i think sometimes when we talk about women we forget about poor women we talk about women generally we talk about professional women but i think i'm glad you brought the perspective of violence against women particularly for vulnerable populations and i think that the gender issue you know as we all know leadership that to bring change in this area really starts at the top this is not one which will just bubble up on its own this is something which we have to make a conscious choice that leadership requires goals and it requires clarity of vision for what we want to do and it requires mindset a mindset shift you know you mentioned being more personally attached to this marcos because of your daughters for all the men out there who don't have daughters what do we do to make this personal and i think one way to think about that is through education because i think that um traditional education won't change mindsets creating role models for girls will start to create the opportunity for them to think about careers they never thought was possible before role models yesterday we launched the gender initiative in argentina with the world economic forum that filled us with joy and there are two driving ideas here one is the importance of the political commitment to really set about working on this pending task which is affording equal opportunity there is an important role to be played by the government institutions and by corporate sector taking also into consideration the role of mothers everything that has to do with maternity leaves and you know the double challenges that women face both in professional context as well as in other occupational context they need to achieve a balance between the work and looking after their children and that's also important for families so it's not just about offering equality from the point of view of discourse but in actual fact that we're tackling as a region in latin america through this new initiative but this is a perfect set way to also talk about how much we heard the region needs to do its home homework before thinking about brexit and and yes there are other topics geopolitical topics that are important but also we need to uh a better uh integrate our economies our trade dynamics investment etc so uh to marcos peña um how are you going to make this happen this call for the region to look at itself and collaborate and integrate better integration in a region has often been more at the level of rhetoric than in actual fact although a lot of progress has been made on the political front and it is a region of peace cooperation and dialogue something which wasn't the case 30 years ago and even though intra-region trade has increased we still still need a quality leap in terms of innovation and this is a challenge we recognize in marcos so we recently visited brazil and the cabinets of both countries led by the presidents sat down to work on the strategic alliance to see how to take that quality leap in terms of integration and in fact today there has also been a meeting of foreign ministers of marcos soar and the pacific alliance countries to work on defining a common agenda these discussions within the region as well as the possibility of discussing an agreement between the eu and marcos soar at least helps us pinpoint the challenges to recognize where exactly the key difficulties are clearly there are interests that need to adapt obviously a lot of people have benefited a lot from a closed region that had no competition and was afraid to go out to the world but that also carries with it unemployment poverty and the lack of development so creating a virtuous mechanism for integration and growth is the way to go and we need to do this through concrete steps and not just a rhetoric idea to close this session thank you to my panelists i hope that we can just and now i would like to invite on stage dr philip rosler head of regional and government engagement and member of the managing board of the world economic forum for the official closing of these events excellencies ladies and gentlemen first i would like to thank again our panelists particularly under the leadership of cabriela our co-chairs for excellent guidance through our event and so my great for walking literally an extra mile to participate even today so thank you very much for being here and thank you very much for all your roads and ladies and gentlemen i would like also thank our great host minister piena i would like to thank the government of argentina president mccree as well as the city of Buenos Aires thank you for a great opportunity and ladies and gentlemen allow me to thank all the helping hands our partners our teams inside the world economic forum in particularly everything under the leadership of our latin american heart and soul marisol thank you marisol last thank you goes to you for being here it was my father biggest latin america summit we had as a world economic forum so let's close with an agreement i would like to ask you to stay committed committed to improving the state of latin america and we the world economic forum we will remain as your foremost platform for public private cooperation in order to turn all the ideas you had over this week the agreements and commitments to turn all these things into reality and on that note i would like to invite you now to our favor reception i wish you a safe travels home and looking forward to see you at latest next year in saupado thank you very much the latin american summit is closed