 Good morning, ladies and gentlemen Good morning to the co-chairs press conference. We will start right now We are missing one of our coaches who will join That's Louisa Elena Tarjano, she will join a little bit later in the press conference So welcome to the world can we form Latin America? 2018 the theme is Latin America at a turning point shaping the new narrative We have a distinguished panel of co-chairs Who will be here for the entire meeting and who will share with you now and their expectations? For the meeting but also about this region So I will introduce Our panelists today and then each of them will explain a little bit What they expect for the meeting and and for the region? So we have Candido Othello Brasher was the CEO of Itao Unibank Brazil Then mr. Paul Boelke who's chairman of the board Nestle We have Maria Cristina Frias member of the board and columnist for Pola de Sao Paulo Mikhail Michael Peguar CEO of CA Technologies The US Luis Carlos Rabuco Cappi was the chairman of Banco Radesco Brazil And then Linguei Woods Dean of Blavatnik School of Government of the University of Oxford UK we will have Louisa Helena Tazano Chairwoman of the board of directors of the magazine at Louisa Joining us a little bit later So the floor is yours, please Thank you. Yeah, I was told it is okay to speak in Portuguese. So yes We have translation It's a huge pleasure to be here I believe that the World Economic Forum in Latin America is taking place at a very timely Moment for Latin America our region is Resuming its growth period and this is specifically true for Brazil We are also facing several challenges Recent challenges for foreign trade with now with protectionist measures Being taken around the world and we are gonna have elections in five countries Colombia, Mexico, Brazil, Costa Rica and Paraguay And all these elections it's possible to identify the same forces at play We have forces that are present all around the world Some are more populist some are more conservative and we have New the new forces also Taking shape The debates for these elections in Latin America are connected to sustainability Economic growth. What are the necessary measures to ensure economic growth in a sustainable manner and improving income distribution? There are Gains for the populations practical gains and also debates for the medium turn about productivity We live in a world of huge technological development and the quality of education is key to reach Competitiveness in countries Amongst other factors, of course and the next two days, I hope that we will have very interesting discussions I'm sure we will learn a lot about all these subjects And we're gonna try to understand what are the avenues and the paths that Brazil and Latin America will take in the next years Bon dia for a pleasure to keep And they're gonna do it in English But it's a pleasure to be here and I'm actually I'm delighted to be have been invited to co-chair this event here the web event and For Latin America here in San Paolo and for many reasons first the personal reason I've been linked with the continent Latin America and South America for quite a while in my life I actually started my career for my company Nestle here in Not in Brazil, but in Latin America. I've been here in Latin America for 17 years So there's a bit of emotion there of of of hey, it's my continent to and Professionally also as I said 17 years of my professional life, but my company Nestle has been in Latin America almost 100 years It's 89 years in Brazil with factories and we are almost in every country. So we have pretty much deeply involved in the continent and and we have been here in good and bad times. I remember We had sometimes ups and downs in the continent and we have stayed and been part of it So that's another one and still investing very hard But also another thing I feel that that Latin America somewhere and the title says a turning point and Then shaping a new narrative. I'm a little bit Turning points we had so many turning points and we never do the right turn Somewhere and that's why we start speak again about the turning point and and shaping the new narrative So let's have new hope somewhere. I say it with some frustration because that Latin America seems like the continent of the permanent future And and yet this time I feel something is happening that is really inducing some some optimism It's an important time. We have lots of Elections I think six maybe seven but this year and actually also six next year. So there is a democratic refreshment To going to the whole continent that allows us to have these hopes But there's political change in other words. So the economic law to looks not bad Worldwide so it is not only here but worldwide so it is in in a broader context and that is a wave that Latin America should serve if you In the sense for their natural resources agriculture, etc Has been always one of the strengths of Latin America. So that should play into that to demographics And then this is the democratic Dividend that is playing in youth and it's still to be played out in the next 20 years So it's an opportunity to grasp don't we should not lose that either technology is going to help too I remember so well when the Mobile or the cell phone Was introduced in the world. Well, Latin America was one of these continent and embrace these new technologies very fast So that's another one and and but many challenges again, Latin America It's not for weak institutions productivity is not high. There's more labor induced. We have the governance corruption Incoming equal inequality. So we have all the possible problems and yet at the same time It's it's it's an opportunity to start them race. I would really and I think that's the reason why we have the web here, too to talk things over and start really having some discipline and Getting the right things over time with traction and government has a role to play industries have a role to play also Society has a role to play but it is like look, let's not lose now once for once the chance of doing the right things Stop the experiments and do what is obvious, which is really driving the economical engine Distribute what it creates Start having more institutions and and and and frame society better Etc. And that's why I'm motivated and let's let's let's embrace this opportunity And this spark of hope for the continent we own it to the people I think Thank you very much all Media will be happy to see that media is also represented On on stage today with our co-chair, so Maria Christina. Thank you. Thank you for the invitation It's an honor to be here Representing the daily newspaper from sample folia de San Paolo and between the Supreme and and co-chairs to sum it up one of my expectations which are numerous as a conduit as Said it. It's a very opportune forum. It's satisfaction to see the world economic forum back to Brazil after so many years of absence and Committing a very good way the business community and social community in Brazil. This is times when you see when you face difficulties and new tasks to be done with the problems of worrying on For international trade, this is a very moment to discuss our relations on the world Sphere our problems of competitiveness also I Think we're going to benefit from those debates of what we need we can learn from the Davis community and a second level relevant issues are as always education the fight against corruption and the social entrepreneurship folia de San Paolo our newspaper as a very fruitful Partnership of 14 year old partnership with the Schwab Foundation will have some awardees who will will receive the the title of a Entrepreneur social entrepreneur of the year is developing with apax, I don't know if you're aware of it some more humanistic model of Panel management for prisons penitentiaries with a high levels of recovery of inmates And to close it up We've just have a panel about fake news where we debate the aspects of because fake news is always tempting to try to protect the the electors with More rigid legislation. I think Electors voters much be exposed to all kind of information. It is better than they look for Trustworthy sources of information and letting government or other people Deciding what is good for them or not? That's why once again education. I think it's the and it's the remedy against the fake news and I think It's of the utmost importance that the business community think to support initiatives Focused for the use so that they understand the difference between Fake news false information or distorted information and Information published with a serious system and Trustworthiness, thank you very much Thank you very much Maria Cristina. Mr. Grigual. Thank you first I'd like to thank my esteemed colleagues here as co-chairs very honored to be part of this team When we take a look at Latin America, we're an American company that's been driving technology in Latin America for an awful long time If you just look over the last three years It's a little clouded with respect to some of the economic issues that have happened in Latin America But if you take a look over the last 16 years There's been tremendous progress and tremendous momentum in Latin America, you know extreme poverty has gone down by almost 50 percent Two-thirds of women are now participating in the labor force First grade to eighth grade is pretty much universal infant mortality has been reduced by 65 percent But when we stop and pause and echoing on Paul's words now is the time to really think about change and Progress and the thing that's really happening on a global basis is this concept of the fourth industrial revolution And that has a very significant technical component which pretty much affects all economies Social welfare and how people feel about the dignity of their work and how they can participate in the fourth industrial Revolution when we start thinking about that and looking at Latin and what I expect to see at the World Economic Forum here in Latin this year is a deeper conversation of how does Latin move from a Primarily commodities-based GDP Force to something that is more in line with the technical revolution that we're seeing on a global basis Latam is the third biggest internet economy in the world and yet they don't right rank in the top ten of technical producers in order for Latin to really Achieve its true potential. We have to take a look at the issues that hold it back from truly participating in the fourth industrial revolution, which is going to hit a lot of the social causes that we've talked about education transparency skills refreshment The ability to participate and compete on a global level These are all very big silly and topics that I think of the forum plays a very good part in leading the discussion But coming out of the discussion I hope that we have concrete actions to help Latam really achieve its true potential Thank you. Thank you very much. Mr. Trabocco Cappi please Good morning to all I think first of all it's a huge pleasure to be with this culture and my enthusiasm Issues the Aztec about the organization all these first part of the story of the mundo pois a decade has been seen the local The debate the novice ideas and ideas Rationals ideas rational ideas. I did able to change the world as is the slogan of this year as we're coming from We from Latin America. We have many things to achieve. It's obvious that I Situations of the 21st century the 20th century have given us a valuable heritage as for the environment women's rights respect to diversity respect to Minority but mainly in the 20th century globalization has become something irreversible Why because it came from the the change of production models within the the concept of all the industrial revolution As to the book published So I'm not I'm neither optimistic nor pessimistic. I think that the debate within this forum is to Talk about realism globalization brought us a mode of governance a way to of public for public management has been quoted There will be six six elections held here in the Latin America. It's not a motif or concern It's such an opportunity because more important than election is the commitment The next elected representative will have two words a rationality there are no more place for experiences are Adventures in the world because Latin America As a social debt for a long time and the social debt can only be Retrieved through growth through GDP. There is no other way Obviously technology and digitalization and education are Core options to change the world but Latin American population mainly in Brazil with millions of Unemployed and sub-employed people we can and there is only one therapy the therapy of growth the GDP the GDP per capita, this is where you can tap into to give some social comfort so that we have a more Equate equitative society a more humane and less violent A Latin America has shown a low growth rate Brazil is coming back from a recession is recovering from recession I hope that this That this recover won't be cyclic, but the recovery of this growth from 2018 is an opportunity for us to create a base for the future Latin America is as experienced on a political level in the economic level within governments and as Ethics is concerned maturing mature times and now we are ready to debate future the past we all know that it It not always has been how many spacer present we can discuss and the future We can lead with new processes and new politics obviously When in Brazil declare default in the 80s Some bullshit reactions. They were saying that Brazil was the the future that never comes But we need to anticipate the future through reforms through processes Permit allowing progress. I think that's what the work on the forum is about and We're enthusiastic to be taking part of those debates. Thank you very much Thank you very much Miss Nega Woods, please you would like thank you. Good morning It's a huge pleasure to be here at the Latin American Weff and to be co-chairing it at the Blavatnik School of Government at Oxford University We bring really brilliant current and future leaders from this continent to the school to learn from other countries to learn from other sectors to learn across disciplines and It cannot do anything but make me optimistic about the prospects for this region But my hope for the next day and a half is really an ambitious one Across Latin America as across other parts of the world. There is a huge Anti-establishment revolt happening in politics In almost every democratic election in the world We're seeing more than half the population vote against the establishment And I think that means we've got to do three things together starting at this meeting and The first is to really come up with a new economic model Nothing short of that workers across this continent are facing a Technological competition on one side jobs taken by robots and an outsourcing Competition on the other what we're seeing across Certainly the whole of the OECD is that for 50% of working people Wages have either gone down or they've stagnated the financial times told us two days ago That at the same time the personal income tax on those workers has gone up by six percent And yet on the other side The Financial Times tell us that the ten largest technology companies who have hugely increasing rates of revenue Have had a Rapidly reduced Tax effective tax rate so our economic model is not working To deliver something which a majority of people think is fair and are willing to support And that's the first element of the populist revolt and I feel we all it's going to take the brains and the Energy of the private sector the public sector the not-for-profit sector who have come together here in Sao Paulo To start thinking about what is the economic model that's going to give people a Chance to work and to improve their livelihoods through hard work The second challenge is a new transformative politics Establishment political parties and leaders are losing Everywhere and that's not surprising when half their population feels that they've lost something people have lost a version Psychologists would tell you that it matters much more to people What they're losing then it met then then they then they weigh the gains of what they might increase So it's no there's no point establishment politicians Promising a 1% increase in GDP because that is not capturing and Transforming the anxiety of their population We need a new transformative politics across this region where Politicians think more boldly about how to deliver to the concerns that most of their population are meeting and that means listening carefully learn from the successful cases learn from the the French Campaign that Emmanuel Macron ran to listen to what people's concerns really were and to ensure that politics is responding to those concerns learn from the populists themselves about How to simplify your messages simplify your communication and make sure you're genuinely representing the people otherwise establishment politicians and political parties will continue to lose But I think we can do it we can do a new transformative politics and then thirdly we need a new international cooperation And here I'm optimistic that Working together we can do this think about the Paris climate change negotiations They came about actually not because governments led they came about because private sector leaders led Because communities got together and led there was a ground swell that pushed governments together in Paris And when President Trump said that he was withdrawing the United States The momentum did not collapse instead every single country in the world Joined the Paris peace process the Paris climate change process and now only the United States is not a participant So the possibilities for a new international cooperation are there and it's going to take private sector leaders government leaders Not for profit leaders leaders from across society to really seize the opportunity to push for a new international cooperation So that's my agenda for this Latin American. Weff. It's a new economic model It's a transformative politics and it's seizing the opportunity to frame new kinds of international cooperation So thank you for hosting us Thank you very much for sharing you your views. I still hope that your Fellow co-chair miss Tajano will join. She has another session. So and she might still be able to join and Add to your views Meanwhile, we have a little bit of time for some questions From the media and if you have a question, please introduce yourself and Ask the question to one of the co-chairs Or several so we have one question here in the second row. You can get a microphone, please It's on. Yeah, can we can we put the microphone on please? You try it again. Yes. Good morning My name is Cibelia Mado from the state of Bahia. I'm a social entrepreneur at the World Economic Forum and Davos in 2016 Antoni Guterres the secretary general of the UN made an amazing speech about an innovative moment movement in the private world and partnership for social issues he said That there was a bipolar relation of sorts so the private initiative is doing their thing and social initiatives and He proposed a Multi-polarity instead of a bi-polarity so the possibility of putting together Private resources and social projects in one single project. That's my question What do you think about this idea and how can we move forward in that sense? You want to direct this question to one coach in particular or should we Yes, please For all for all the panelists I can give one concrete example as part of the WEF the IT Governors Council, which is The group of the largest technology companies that have linked together We meet like most of the the WEF industry forums. We've banded together and put together a skills portal to deal with Nari's point there's going to be some job displacement for sure with the fourth industrial revolution is technology Starts permeating on a global basis and the issue we're trying to solve is how do we help people participate in? This economy by skills retraining so we put together a portal It's in the early days. It will go live Globally at the end of March. It's English language only at first, but you have 11 companies that compete fiercely All day every day on a global basis Step back from our competitive instincts and put a lot of our training together our digital training on AI cybersecurity Java and programming languages agile management all the Fundamental skills that you would need to participate in the you know fourth industrial revolution and we're providing that for free We're going to add more course curriculum. We're going to try to deal with some of the language barriers There's a skills Assessment that anybody can take that will rank you with respect to how digitally aware you are and they give you Opportunities to move into different segments of you know your own digital training This is something that's in the early stages, but it's an example of you know a private consortium Trying to help solve the education issue. We have especially with displaced workers adding Actually the question induces some thinking in the sense of hey Private sector and and and politics and society can they work together and And I don't see anything over contradiction there in the sense that actually economic activity is all about being in a positive force in Society is it's doing something for Producing products or services or and if you do that with the right purpose You do that with the right set of values. It should be positive. It should be possible to do that together a good example of public private Engagement They have the privilege of co-chairing which is basically going after this very very important problem of water and Sanity and hydration and and in many parts of the world. This is a huge problem and and actually It is to become a big problem worldwide if you don't care for it Well, the world resource group is actually a platform where where the private sector together with with a civil Society to gather with governments are looking locally for specific solutions and doing that with a system and Discipline that we can share because there's best practice you can learn from each other But then we land that and it's a it's a multi-stakeholder initiative then locally Where basically we want government to own it because that's the frame that you have there But the whole concept is multi-stakeholder Engagement of the different parts of society about the problem that touches everybody and then you say why would the private sector do that? Well, for example in my industry, if you don't have water, you don't have agricultural materials You need water to make a good coffee We we it's not many places of the world where water is not important. So Doing that it makes also business sense to service them. So it is not hey Let business Forget to be business and do something for society. No, it is intrinsically linked with what business should stand for And I think that's a little bit the tone that I felt in the question. Is it possible? Hey, it should be natural Thank you. Yeah, did you want to add to that? Okay? Thank you, and I mean let me add to that That's what the world ago while the comic form is about it's multi-stakeholder engagement Make sure that the different place work together. Do we have another question from the floor? Yes here in the in the back you could get a microphone there, please Could introduce yourself, please Good morning, my name is Andrea Italo. I work for agency stado. It's a news agency I have a question for mr. Trabuco and mr. Brasher You both talked about the elections that will take place in Latin America this year Specifically about Brazilian elections that will take place. What is your expectation? Both of you About what's gonna happen in Brazil? What is the main risk that you see? The results of the election can they have an impact on credit and on economic growth for next year? Thank you for your question, Andrea Elections in Brazil will take place at a Keypoint our country has just left a huge recession We've had modest growth this far, but we are preparing to grow even further this year My feeling is that this year we have a growth that is more or less Defined we are gonna have elections in October. That's more to the end of the year We have more demand So I don't see a huge impact of elections in our economy this year However, this is gonna be of the utmost importance for the next years Currently Brazil has is in full condition of having Sustainable growth for a long period of time Inflation is under control Interest rates are the lowest we've had and they can remain so for a long time the external scenario is favorable and sound we have reserves Low current accounts deficit We have foreign direct investment So we are in very good conditions What do we lack? Well, it's a fiscal risk. It's a tax tax tax risk. There is an unbalance in public accounts public debt Is on a growing trend and This is the main problem We will face or the new president we will face of course In gear mrs. Inge Woods mentioned several problems. We can't have A speech that says well the GDP is gonna grow or I'm going to balance public accounts How is that going to bring benefits to the population? so we have Broad group of candidates. They're not defined yet, but several of them are concerned about this They are concerned with tax issues the balance of our public accounts So that the country can have sustainable growth My expectation is that we will have positive results from the selection and that the country will grow in the next few years Well, mr. Brasher Give a very good reply. Your question is if the elections can mean turmoil Well elections can mean volatile times, but elections are an opportunity in fact They are an important opportunity for Brazilian society We will be able to scrutinize government plans and projects for future for candidates and future governors and then we will be able to decide and to choose Something that is crucial for Latin America, which is what's the state model we want? Globalization and the way the world Thus public management. Well that has changed indeed and it's evident. That's that an election That will reaffirm the belief in a state that is not centralizing That is not Reducing growth, but we must believe that we have a new society So elections are indeed an opportunity and we must reach a consensus around government plans that will make our country move ahead What is key is? The commitment of candidates with reforms we must have a cap for spending and this is really important But it's not enough if we don't have the right reforms in place Just having a cap and spending without a balancing in public accounts. Well, that will Leave us in the same Situation public deficit if we have an unbalanced in our tax system that will make the state Uncapable of investing above all in social Social investment, so elections are an opportunity. That's how I see it Close this press conference We have miss Tarjano who joined us and we'll give her the chance also share her views for the coming days I was at different debate in another room I Just heard my colleagues speaking as Brazil had a political and economic crisis We are used to economic crisis, right? What I've felt is our maturity to separate politics from economy oftentimes politics Is Giving us events so the dollar is not going up and the stock markets are fine. This is a sign of maturity and We are Seeing a light at the end of the tunnel. We see better things happen. It's great to have this forum here There are two important things to people 60% of Brazil's population Makes less than 2,000 reais a month. That's the family income. This is intolerable. This is terrible a family That makes less than two thousand and 13% Don't make a lot of money as well, so more people are getting rich and more people so we have a Very few people with a lot and a lot of people with very few and That is about jobs in a developing country jobs can improve the economy jobs and income That's what leads people and poor countries to have a better situation and we have a sad level of unemployment Four years ago. We had a good level of employment So this forum, you know the economy is an engine to improve our situation regarding the elections There has been so much turmoil and we are not even starting to think about this election because they're not defined yet But our people is not the same. They will demand for their rights after the last three or four years We've gone through with so many news So like mr. Trabuco mentioned and Candido as well elections are a sign of maturity Politicians cannot do what they did in the past people are not going to accept this The civil society is very much united in Brazil more than before and I believe in change through Union and civil society if civil society is not united. There's no change and we need profound changes. I Believe we've become protagonists in Brazilian history civil society is a protagonist So we have 800 women We have 1200 women that have no political intention But they want to take ownership of this country with this movement of women. So society is actually Holding grasp of the situation and of our political life. That's a sign of maturity. I'm very glad to have this economic Foreign in Brazil this Health and employment are key for our people Went to thank you very much to our co-chairs today. Thank you for being here. Thank you to our media Thank you for being here at the press conference I wish you all a very successful day today and tomorrow for this meeting. Thank you