good to everyone in how I just got
announced as they just announced the
case the issue that I have to talk about today
that economy of frontier economy
border that surely yes many of
you live here in this region what will
understand but many of those who are
present are not from this region do not live
here and many of those who are going to see the
video are certainly not from this
region therefore we have to explain
a little bit that is border economy
the border economy makes reference
to that formal and informal integration and
maybe the most interesting phenomenon of
informal integration of a country with or
a region with other countries
locally we find ourselves a
region a province that has that is
very small and has the characteristic of
have just one million 200 thousand
inhabitants a small province in
our country in argentina but in
actually if we compare at the level
we are also an economy
pretty small and we have another
additional particularity than 90% of
our borders are with other countries
and not with our own country with the
Argentina but we have more
integration more borders with and more
contact with Paraguay and Brazil that are
the two economies the two countries that
they are around this province
this makes that despite having or 1,2
million inhabitants we have for
example if we only count the
major border crossings of the
province of missions
we have approximately 22 million
border crossings in this province
that is 22 times the population that we have
in the province of missions and this does
that beyond exports
formal or formal integration that
let’s have the neighboring countries that
involves the intervention of a
Customs clearance one export
with customs broker transport
international insurance etc. and so on
etc
we have to include a huge amount
from
issues that are not within this
formal integration but is a
integration in fact beyond
any international treaty beyond
of any agreement you make with these
countries but in turn we also
we find that this situation that
we believe that it is very own and is
turn very little understood to
national level is a situation
shared by virtually all
the regions of the world there is a one country or
a series of localities a region of
some country that has a characteristics
similar to the ones we have and
that’s why we can actually
learn a lot by observing what it is
what happens in other places and how
we can apply it here how are you
faced these challenges
then the border economy that the
formal and informal integration with
neighboring countries in a place that is in
the border of a country normally very
away from the big cities
now what is the problem they have
these border economies
the main problem lies in that since
economic theory teach us from
the secondary books of the theory
from economic theory to university
or of international economics we also
they talk about what the goods can be
Products can be divided into
tradable or exportable products and
products that are not exportable are not
tradable, that is, there are some products
that can be traded abroad
and others by its characteristics do not
have this possibility some example
that you see the entire textbook of
this in this sense is for example is
very difficult for someone who lives in a
capital city of a country
think about traveling abroad only
for dinner or lunch or only
to go to the hairdresser or to go to the
dressmaker or a tailor to make some
Saco some dress is also very
difficult to think about going abroad
only to go to the supermarket for
buy a product that I like
and return to the country of origin and so on
is in that same characteristic
the materials
construction that traditionally have
both volume and neither value by weight
by volume that makes it very difficult for
be exported and imported
that ‘s what the theory tells us
economic in all the books the most
of the textbooks that are studied
all that in a border economy is not
true because all that can be done and
we know the ones that live in these
regions we know that you can buy and
can be acquired on the other side of the
border and we can think of a trip to
outside of just two or three hours and
consume in that period
even in some cases in which
they go only to load naphtha so
both this implies that the theory
economically traditionally no no no we
can explain how to focus or how
focus burst and generate policies
public for these regions and part of
this is explained by the fact that the
most of the border economies
they are also peripheral or they are
far from the urban centers as I said
they are far from the capital cities and
therefore they are realities that are not
very taken into account
but in turn this also makes that
let’s be the regions more
affected by any modification of
exchange rate for any
tax modification because they are going to
be different the taxes or the
percentages the aliquots that are charged
from one side or the other of the border and
for any modification in the
cost structure that has a
company and that’s why we are the
regions that are more sensitive to policies
economic despite being the least
had in mind because we are the most
far from the decision centers of
Economic politics
then from this diagnosis and
this problem arises the question of how
we face this problem and which ones
are the solutions that we can observe
in various places in the world and there
we have a number of answers or
example that can which we can
learn so much on the northern border with
Canada or Mexico border south of
united states many cases in
Latin America we have many cases in the
European Union when it was expanding and
regions that were not border
they started doing border with someone
that had others that we have tributary
others that more taxes another currency and
others and also something similar in what
we find in Africa and in Asia so
so many examples there are many in the world of
which we can learn and to see
what are the potentials because
obviously the great risk that arises to
from this is that we say yes
we have a problem of
fluctuations in the exchange rate and today
it is convenient that people buy here
but it is convenient to copper the
other sides of the border
the immediate reaction that has a lot
people we raise the borders
let’s lift barriers and prevent the
people go out and go to consume others
places and actually that makes us like
I said today very sensitive to all these
policies which makes them maybe
in the competitiveness laboratory or the
laboratory where we can see how
well we are the ones we make purer than
we can find in each of the
countries that do not have that barrier of
physical distance with the other countries
in the examples that I mentioned to you today
we can find large groups of
answers and the first of the group of
answer points that we have to divide
the question about who makes it
which is being formulated that is
identifying the problem the problem is
a company or if the problem is the
society we see it from the society of
an economy in general
if we see it from the analysis
microeconomic of a company
the answer is very clear since the
goal of every company is to generate
profitability therefore think about the
border region or think of a
border economy implies a huge
potential only in the region that
we are that it has 1.2 million
inhabitants and we think only how much
population there in the main
main locations of the
not all border crossings and
not the main ones practically
we doubled that population and with a power
higher purchasing power than we have in
the province of missions
then notice that clearly
that sense the decision of the company if
we consider a trade for example
clearly the decision is app that
I should take is to take advantage of that
opportunity
that market so close that it has and such
Once in these cases, generate is necessary
generate investment abroad
in these border towns and this
it is law
the germ and this has been the example the
beginning by which many
companies have stuck the big leap to
world level
We can talk about trading companies
retailers textile companies stores
clothes we can talk agricultural businesses and
the rest
there are many examples that abound in
which just this situation of
border and the differences or these
economic problems of type of
change and of different schemes
taxes made him make the decision to
open your first place abroad and
from there we have a huge one
huge investment career in the
outside, turning these companies into
leaders in their sectors and this we can
see it in each of these of these
examples that I just mentioned them but
the situation is different here is what
it can happen in itself
we consider as a society if we
we consider as an economy in its
set
that way for example we have to
keep in mind that society does not seek
profitability but what you are going to look for
the economy as a whole is to maintain
the levels of economic activity in
the entire region and this translates to what
both in keeping the amount of employment
that there is in the whole region
ol have more and better employment and higher
quality
that is, with better remunerations better
better social coverage and other things that
it means that we have to think about everything
the whole society and not
only in the concrete situation of
a particular company of this one in
this one in this line is interesting to think
that we can also divide in two
Large groups different the
different approaches with which
we can address this reality
On the one hand we can think that each one
of industries economic sectors
they can be reflexes of the activity
economic as a whole or they can be
promoters of this activity that
mean these are two such terms
time a little complex activity
reflects are those that simply
they react to the resources already
available locally imply more
economic movement
an example of this is an employee
public an employee of the municipality
or from any public entity
anyone who has a salary
in this town
by spend your salary in a supermarket in
a kiosk in a bookstore a
car dealership and so on
these are activities that reflect
simply the economic activity that
is already located
if we concentrate only
in that approach if we only we
we concentrate only on that form of
see the reality the solution before these
economic problems simply happen
for two possibilities pass by lifting
barriers that prevent our
local consumers leave they went to
consume other places or go through
reduce the cost structure that
they have in this these companies involves
lower taxes which of some
way to finance and the public system
provincial or national municipal and
subnational according to each country as has been
analyzed and therefore I would have other
not so positive aspects and it would end
being a zero- sum game where each
we would be fighting each other
simply to destroy the cake
that today exists of economic wealth in
the region
another way of thinking about the
problem is to think about converting each
one of these sectors in activities
driving economic activity
What this means involves thinking that
each of these activities any
either of them can bring resources from
the outside towards this region and that
way to generate more economic activity
make the cake of wealth grow
local economy will employ more people with
better salaries
what does this mean thinking
in what
for example, the merchants
transform and be formed not only
thinking about the competition
on the other side of the border but think
more in the medium and long term and is for
that insists on this idea of
competitiveness laboratory that
we naturally conform because it is the
right place to think these
medium and long-term policies
this implies thinking not only a
tax issue implies this
obviously it is included but not
only implies thinking that yes no
it also implies thinking for example
what are the major trends that
affect world trade and within
this we are going to be forced to
incorporate analysis the fact that
according to the projections in the
next 10 to 20 years approximately the
70 percent of the employment of trade to
disappear by is going to be replaced by
automated processes that involve
implies that local businesses are
have to do anything you do not have to
adjust and adapt that new technology
to be able to grow and to generate
job
that way ahead of this wave
is coming
it is no coincidence that in our country
main company or the largest company
market value that exists does not produce
fuel does not produce oil not
produces automobiles or is an industry
but it is a marketing channel
electronic that is very little known by
all of you that does that is the great
today’s trade challenge
if we talk about industry necessarily
we have to think about the establishment of
new investments from abroad
towards here and that implies in
infrastructure I’ll talk about
infrastructure talk connectivity
talk about energy talk about innovation
of products and processes
mainly not only product
but almost always more is spoken of
processes that of products and finally
it also involves working in class 3 that
it’s a talk that would be a little more
long to dedicate myself to this but it implies
work on all these these issues that
involve arrive is to generate those of
no investment from abroad for
just generate exports
formalities that enter more currencies of the
region and in this way grow the
cake
from the tourism side it also implies
think about it the way
these same questions of form
different and there are many cases in which
example that I mentioned earlier
there are many successful cases some very
near this town where we see
that this town that we saw as
unfair competition because I had minors
taxes had lower salaries and it
he saw that he was competing with the local economy
hit has added like a new
tourist attraction in the region where
we tell the international tourist that
I come to the tourist from other places of
country that comes can stay one day
more to the people here and us what
let’s go shopping on the other side of
the border we approach and in that way
you can also generate that that
innovation in how to think again the
tourism
this implies of course also
streamlining of border procedures
it implies product innovation and nine
version of course also in
various offers for tourists who
is going to stay longer because obviously
will not be 24 hours buying
but he’s going to have to make a huge
amount of things too and we have to
give the offer for this but all this
implies thinking about this situation
border not as a problem not as
a difficulty but mainly as
an enormous potential that we have
we are used others
the region is traditionally seen
border as a region with many
economic problems very difficult to
work where we have more problems and
difficult difficult difficulty to compete
with neighbors but in reality what
what we have is a huge opportunity
to think long-term competitiveness
term
we have two great options we have the
option to build barriers to spin
isolate ourselves from the world
or we have lava the huge opportunity to
take advantage of that integration
that cultural closeness that we have for
initiate internationalization and
investment
our companies and in that way attract
more resources to the region
thank you very much
[Music]
me
”
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