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Business for Development in Latin America Javier Santiso Deputy Director and Chief Economist OECD Development Centre Organisation for Economic Cooperation and Development Exporta 2007 Sevilla ICEX June 13-14 2007
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2 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions
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3 The IBEX 35: A Latin Flavour Source: Based on Bolsa de Madrid. 60% of Spanish capitalisation
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4 Latin America: a helping hand for Spain Source: OECD Development Centre, 2007; based on Annual Reports. 30%
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5 Spain: a helping hand for Latin America Source: OECD Development Centre, 2007; based on Annual Reports.
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6 Spanish multinationals: a helping hand for Latin America Source: OECD Development Centre, 2007; based on Telefónica Annual Report. Total fiscal contribution Euro 7266
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7 Spanish multinationals: a helping hand for Latin America
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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
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9 Spanish multinationals have a huge stake in Latin America Source: OECD Development Centre,2007; based on Annual Reports.
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10 …leaving other European firms far behind Source: OECD Development Centre, 2007; based on Annual Reports.
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11 …leaving other European firms far behind Source: OECD Development Centre, 2007; based on Annual Reports.
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12 Spanish multinationals also generate some of the highest employment rates Source: OECD Development Centre, 2007; based on Annual Reports.
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13 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions
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14 Increasing capital flows south-south connection: Source: UN Comtrade datababase, World Bank staff estimates, Global Development Finance, 2006. Source: Global Development Finance, 2006.
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15 Leaders of this globalisation process are Mexico… Source: OECD Development Centre, 2007; based on América Economía.
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16 …and Brazil Source: OECD Development Centre, 2007; based on América Economía.
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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
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18 1 Spain and Latin America: A Helping Hand Emerging Multinationals: New Developers? 2 3 Conclusions
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19 Globalisation strategies have turned into success stories in Spain, Latin America and other emerging markets. Spanish expansion abroad is moving towards new markets, beyond Latin America: OECD countries and Asia. The region remains however a strategic bet for both old and newcomers. Above all the internationalization of Spanish economy could capitalize on this 10 years of increasing linkages: Spain as a business hub for European corporations operating in Latin America. Spain as a business hub for Latin American corporations operating in Europe. Conclusions: Spain as a Latin American Business Hub?
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Gracias!
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