1. Multinationals and Development in Latin America Javier Santiso Deputy Director and Chief Economist OECD Development Centre Organisation for Economic Cooperation and Development Latibex Forum, Madrid 15-17 November 2006

2. 2 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions

3. 3 The IBEX 35: A Latin Flavour Source: Bolsa de Madrid, October 2006 60% of Spanish capitalisation

4. 4 Latin America: a helping hand for Spain Source: OECD Development Centre, based on Annual Reports, 2006 30%

5. 5 Spain: a helping hand for Latin America Source: OECD Development Centre, based on Annual Reports, 2006

6. 6 Spanish multinationals: a helping hand for Latin America Source: OECD Development Centre, based on Telefónica Annual Report, 2006 Total fiscal contribution Euro 7266

7. 7 Spanish multinationals: a helping hand for Latin America

8. 8 Source: UNCTAD, World Investment Report 2006 Spain has become one of the leading direct foreign investors in Latin America Source: Ministerio de Industria Turismo y Comercio de España, 2006

9. 9 Spanish multinationals have a huge stake in Latin America Source: based on Annual Reports, 2006

10. 10 …leaving other European firms far behind Source: based on Annual Reports, 2006

11. 11 …leaving other European firms far behind Source: based on Annual Reports, 2006

12. 12 Spanish multinationals also generate some of the highest employment rates

13. 13 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions

14. 14 Increasing capital flows south-south connection: Source: UN Comtrade datababase, World Bank staff estimates, Global Development Finance, 2006. Source: Global Development Finance, 2006.

15. 15 Leaders of this globalisation process are Mexico… Source: based on América Economía, 2006

16. 16 …and Brazil Source: based on América Economía, 2006

17. 17 Increasing appetite for overseas expansion can also be seen in other countries such as India… Source: OECD Development Centre. Based on Dealogic and local press. TargetNationalityAcquirerDeal Value ($m) CorusUK/NLTata Group7700 Oil & Gas Assets (Campos Basin)BrazilOil & Natural Gas Corp1670 Omnimex de ColombiaColombiaOil & Natural Gas Corp: China Group850 Oil & Gas Assets (Brazil)BrazilONGC Videsh820 Greater Nile Petroleum (25%)SudanOil & Natural Gas Corp783 Glaceau (30%)USTata tea677 Shell Development AngolaAngolaOil & Natural Gas Corp600 Oil & Gas Assets (Syria)SyriaOil & Natural Gas Corp: China Group581 Betapharm ArzneimittelGermanyDr Reddy's Lab572 Hansen TransmissionsBelgiumSuzlon Energy562 Eve HoldingBelgiumSuzlon Energy548 TerapiaRumaniaRanbaxy 324 Total15687

18. 18 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions

19. 19 Globalisation strategies have turned into success stories in Spain, Latin America and other emerging markets. Multinational groups are becoming leaders in their domestic market but also in foreign markets. In the future we will see more emerging giants from Latin America and Asia taking over OECD-based firms and continuing to be at the centre of the globalisation process. Conclusions

20. Thank you!