Companies | Export | Career | Complexity of the economy | Comment

Examples Economies For example, those dedicated to extractive industries such as fishing or mining are less complex, while examples of complex economies derive their growth from activities such as biotechnology, pharmaceutical industry (R&D), aeronautics, robotics, etc. , high finance, etc. Roughly speaking, we can say that ICE gives us an idea of ​​the scale and sophistication of development. Production of a country at a particular time. The beauty of ICE is that it allows us two levels of analysis and comparison: within the same country over time, and within a country against some other country we want to compare: say, Peru vs. Mexico or Peru vs. Costa Rica, or China vs. the United States. Desired countries in the last 30 years.

Also Read: Industry Faces Worst Decline This Year And Will “Return” Low In 2024

The first advantage of going to ICE is that – in fact – it is possible to significantly change the economic structure of countries, especially to check the quality, diversity and level of sophistication of their export offer. Internationally, there are many examples, starting with the original Asiatic tigers (KoreaHong Kong, Singapore and Taiwan) successfully followed Japan's transformative formula in the 70s and 80s in the 60s, making real quantum leaps and becoming industrialized nations almost overnight.

If this is not enough, we can see recently industrialized Asian countries such as Malaysia, Indonesia, the Philippines or Vietnam, all of which have transformed their economies, moving from simple, agricultural export economies to real manufacturing centers. and export of high technology and sophisticated goods and services. ICE provides a very simple way to “visualize” such unusual change by clicking here or there and moving the computer mouse cursor along the timeline.

See also  Warren Buffett posts $157 billion cash flow at Berkshire Hathaway | economy

All these countries have followed more or less similar paths – of course with some significant differences of a geopolitical, political and situational nature. Importantly, in each case the emphasis is on outsourcing production for export. More recently, China and India have mirrored the Korean-Japanese example, but at an even greater pace.

Also read: Non-prime side of economy in decline, room for reversal in 2024?

But this strategy of economic growth and development is not and is not exclusive to Southeast Asian countries. Latin America, Mexico, Costa Rica, the Dominican Republic and other countries have adopted similar routes. Costa Rica has been able to attract significant investments in high-tech sectors such as Intel in microprocessors. It created high-quality jobs and encouraged the development of technical skills. All this through the “Smart Makila” project in electronics, medical devices and aerospace. In this way, it was possible to overcome the “trap of raw materials”, moving towards an economy focused on advanced technology and specialized production.

Mexico, for its part, has for nearly 30 years attracted significant investment in high-tech sectors, such as the recently announced giant Tesla factory, with over US$5 billion for an electric car plant, in its vicinity. States and the benefits of the so-called IMMEX regime. This “regime” has created 3.1 million direct jobs, with average salaries well above the minimum wage. In a special way, this incentive regime has given an extraordinary boost to the automotive sector, creating 98,852 jobs in the terminal sector and 831,906 jobs in the auto parts sector, positively impacting the GDP. A corollary effect is the deregulation of companies and the collection of approximately US$8 billion in taxes by 2022.

See also  Topics of the EFE Economic Day Friday, September 8, 2023 (7:00 p.m.)

Based on these experiences, I have presented PL7065/2023-CR in the Congress of the Republic, which promotes the creation of jobs through industrial development, export of services and processing, manufacturing or mahila regime and storage (REMA). Attract foreign direct investment, promote industrialization, create employment and improve international competitiveness. PL7065/2023-CR proposes a legal framework for the REMA regime, promoting business regularization and compliance with international standards, with the aim of structurally shifting the economy to higher value-added sectors.

In addition, it promotes decentralization because REMA companies can carry out their operations anywhere in the country, unlike a “Special Economic Zone” (SEZ), which prevents the company from carrying out its core activity outside the zone. Finally, the program directly promotes formalization by creating a new manufacturing or maquila industry focused on the export of services. A more complex economy is needed for the development and well-being of the country.

About the author

Start standing out in the business world by getting the day's exclusive news delivered to your inbox Here. If you don't have an account yet, Sign up for free And be a part of our community.

Read more

Local News