On April 19th, 2016, the Inter-American Dialogue hosted a discussion on “Private Sector Perspectives on Hemispheric Trends.” A delegation of the Asosiación de Industriales de Latinoamérica (AILA) presented the main challenges to the private sector given the current climate in the region. The representatives emphasized the positive role that AILA and other private sector initiatives play in the region, crediting AILA with generating 15% of the region’s formal employment; an important feat assuming that formal employment the main way out of poverty.
Among the most pressing issues affecting the private sector were corruption, poverty, strong regulations, weak institutions and rule of law, and organized crime. The weakness of institutions and rule of law concerned many participants as it prevents states from adequately addressing others issues such as organized crime and corruption. These issues tend to affect small and medium-sized businesses disproportionately, prompting some to argue that states need to prioritize them over larger industry. AILA representatives also called for more social investment, highlighting the need for better education systems in the region as a way to strengthen human capital in the long-term. Other proposals included loosening regulations on businesses, update technology, drafting policies that allow countries to take more advantage of treaties that are already in force and to maintain and improve the business climate.
Above all, economic growth should be a main priority for the region. At the same time, strengthening institutions is crucial for governments to achieve sustainable economic growth. Many of these solutions, according to speakers, could come from the private sector itself.
