Education and technology vital: AmCham CEO addresses the OAS.

The combination of education and technology is vital to improve competitiveness, reduce poverty and aid economic development in Mexico and the rest of Latin America, says Larry D. Rubin, AMERICAN CHAMBER OF COMMERCE OF MEXICO's CEO and executive vice-president.

Rubin, who recently returned from addressing the general assembly of the Organization of American States (OAS) in Fort Lauderdale, Florida on the theme of education and technology, told BUSINESS MEXICO that developing education and technology was essential in the effort to attract more foreign direct investment to Mexico.

"Achieving higher economic growth will require higher rates of production, and this depends on the skills of the labor force and the available technology, as well as the interaction of both these things," he said.

"The region (Latin America) has thus far invested a lower percentage of its income in education than other developing countries, i.e. in Asia. Those countries have grown much more as a result," Rubin added.

He said that in the new millennium more than ever, education was directly linked to technology. Technology can improve the quality of education, as well as bringing educational opportunities to students in remote areas of the country, where it is generally difficult to find qualified teachers.

The Florida general assembly marked the first meeting for newly installed Secretary General Jose Miguel Insulza of Chile. It was also the first time that private enterprise had been invited to speak at an OAS general assembly. Nine people were asked to speak, with Rubin being the only representative from Mexico.

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"I think the effort the OAS is making to get closer to private enterprise is vital, and must be continued," Rubin said. "We suggested continued cooperation and I hope they will follow our suggestion."

The OAS is comprised of 35 member states hailing from North, South and Central America, and the Caribbean. It is the region's premier forum for multilateral dialogue and concerted action, and it aims to strengthen cooperation and advance common interests. It also works to promote good governance, strengthen human rights, foster peace and security, expand trade, and address the complex problems caused by poverty, drugs and corruption.

Collaboration Is Key

At the general assembly Rubin underlined the position of AMERICAN CHAMBER/MEXICO as one of the founders of the Quadripartite Committee for North American Competitiveness, formed last year between the Mexican private sector and the governments of Mexico and the United States. The group aims to improve Mexican competitiveness in the global arena, with access to education being a fundamental part of this effort.

"(Educational) resources also need to be used more efficiently, it is not necessarily just a case of putting in more money," Rubin said in the interview.

"There should be closer collaboration between the private sector and universities, and not just monetary collaboration but in resources as well," he added. "For example, when companies no longer need their equipment (computers etc.), they shouldn't just throw it away, but instead donate it to educational institutions so that it can be used for training purposes."

The penetration of computer use in Mexico is low, according to national statistics institute INEGI, with 80 percent of the population lacking basic computer skills and less than 10 percent actually owning a computer.

"There could also be tax incentives for firms that help out in the area of education. This is a good example of how government and business can work together," Rubin concluded.

Tara FitzGerald is the editor of BUSINESS MEXICO.