The B20 in Mexico: Private Sector Perspectives

By
Carin Zissis

Speakers:

  • Susan Greenwell, Vice President and Head, International Government Affairs, MetLife, Inc.
  • David D. Nelson, Senior Manager, Global Government Affairs and Policy, General Electric Company
  • Susan Segal, President and CEO, AS/COA
  • Dan Reed, Corporate Vice President, Technology Policy, Microsoft Corporation
  • Alberto Saracho Martínez, Executive Director, Fundación IDEA (Moderator)

 

Fundación IDEA’s Alberto Saracho Martínez moderated a panel of speakers focusing on distinct areas for this year’s B20—the business forum held in conjunction with the G20. Opening the discussion, Susan Greenwell of MetLife commended Mexico for taking the B20 a step further by engaging across sectors and stakeholders. Looking back on MetLife’s ongoing B20 role in the financing task force, she noted that this year there is greater consistency in the themes developed by the various groups involved. In 2012, a key focus area is financial inclusion, with a particular focus on emerging markets and small- to medium-sized enterprises (SMEs). Greenwell said that Mexico had set good examples in terms of fiscal management and, as G20 president, has been an active contributor in terms of offering support around the growth of fiscal services. She also pointed out that, while it’s important for task force members to offer recommendations—finalized at the beginning of April—what’s more important is “the opportunity to engage in real time” during the June summit.

As a participant in the B20 task force on employment, AS/COA’s Susan Segal focused on SMEs and entrepreneurship as engines for job creation; small- and medium-sized enterprises account for 90 percent of Latin American companies and two-thirds of employment in the region. She stressed that teaching about entrepreneurship needs to begin at the high school level to foster SMEs and, in turn, job growth. Speaking about the global economy, Segal said that, around the world, there is about $2 trillion on corporate balance sheets waiting to be invested. She added that the reason these funds are on hold is because of a lack of global confidence. To create that confidence, global consensus around growth-oriented policies is needed at the micro and macro levels, the EU needs to stabilize, and companies need to know the rules of the game. “[S]mall companies need money and banks need to lend that money,” said Segal. “Governments need to set priorities and make sure the rules of game are clear.”

With General Electric involved in the B20’s green growth, innovation, and anti-corruption working groups, GE’s David Nelson discussed the importance of the private sector’s role in those areas. He stressed that price matters for new and alternative technologies, such as windmills and solar power. Nelson said that a large portion of G20 members require government stewardship to guide use of new technologies. To that end, when governments make procurements, they need to look at long-term costs rather than short-term, up-front costs. In the context of Mexico, he gave the example of garbage dumps in Monterrey, noting that there were a short-term costs involved with landfills converting methane gas to energy. But the long-term benefit is that the converted methane is being used to fuel the city’s electric grid. Nelson also noted that research and development—along with accompanying patents—needs to be protected; when other countries copy new technologies, it becomes difficult to foster R&D.

 

Microsoft’s Dan Reed spoke to the role of the B20’s ICT innovation task force, noting that the group is looking at the interplay between education and green technology, as well as how access to information can level the playing field from a business perspective. With technology broadening availability of information and education, SMEs can have the same access to information as major companies—an important factor in job creation.

WATCH A VIDEO OF THE PANEL

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David Nelson spoke to AS/COA Online about green growth on the sidelines of the conference.

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Dan Reed spoke to AS/COA Online about successful entrepreneurship.

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Carin Zissis is the editor-in-chief of AS/COA Online.