Past winners: international CEOs.

Charlie Strauss

Charlie Strauss took control of Anglo-Dutch consumer products giant Unilever's Latin American division in 1996, tackling at the same time the tough task of integrating Latin American markets. Of course, growth was also a priority. Three years later, Strauss, now 61, boosted Latin American operations by spending US$1 billion on acquisitions across the region. Regional sales then accounted for 10% of global sales and profits. At the same time, he kept operating margins at 10% in a business where thin margins are typical, especially in countries like Brazil and Argentina, which took some bruises from global and domestic financial crises.

"In order to grow, we had to begin to work together as a region," Strauss told LATIN TRADE in 1999,just before he went on to head up Unilever's North American home and personal care group. Strauss oversaw the integration of the Caribbean region, which previously had reported to the London office, and with Mexico, which had reported to the North American office. While consolidating, Strauss began buying local brands throughout the region, a move that gave Unilever economies of scale while retaining brand equity. That put pressure on competitors such as Proctor & Gamble while Unilever grew more innovative. Strauss retires from the company this year.

Robert Crandall

After a 25-year career at American Airlines, Robert Crandall stepped down as chairman in 1998. Today, Crandall says the industry must adapt to the changes that low-cost airlines have brought to flying. Major airlines must cut costs, which he admits is easier said than done.

What is the most important trend or event of the past 10 years?

The most important thing that has happened is the onset of terrorism and the collective response to terrorism, which has changed the whole world.

What about the next 10 years?

I don't think anybody knows the answer to that. I guess the way in which the world deals with all this outbreak of terror and how it reaches our societies and whether we are able to deal with it in a way which it preserves the characteristics of our pre-terrorist society. This is certainly the great issue of our times.

Dennis Bakke

Founder of one of the world's largest energy companies, AES, Harvard-trained Dennis Bakke led the Virginia power producer's global expansion, including into Latin America where he spent US$3.50 billion on energy companies in Argentina, Brazil, Chile and Venezuela. Bakke left AES in 2002, after which the utility restructured several billion in debts, particularly burdensome in Brazil. Bakke says that he has always lived by the Christian faith, and adds he always ran AES in line with the Scriptures. He is currently the executive president of Imagine Schools, a for-profit operator of charter and private schools. Together with his wife Eileen, Bakke has long been involved in charity work. The couple created the Mustard Seed Foundation in 1983, which helps the needy worldwide with the help of churches.

Gustavo Cisneros 

Venezuelan business magnate Gustavo Cisneros, already a king in media, telecommunications and beverage industries across the Americas, is now setting his sights on China. Worth an estimated US$4.60 billion, he ranks 94th on the Forbes list of the world's richest people. Free trade, he says, is the key to social and economic development.

What is the most important trend or event of the past 10 years?

The al-Qaeda terrorist attacks on New York City have become the defining moment for the early 21st century because they demonstrated the destructive side of the technological advances that led to the great economic, social, cultural and political changes of the 20th century. They also revealed, tragically, the most perverse impacts of globalization. This event will be remembered in history as the day in which barbarianism tried to put an end to civilization.

What about the next 10 years?

The union of the Western Hemisphere economies into a single community of nations linked by trade and driven to development inspired by ideals of democracy and social balance. Achieving a [Free Trade Area of the Americas] will mark the rise of a new participant in international relations, one whose development potential will be unparalleled by what we know today.

Bruno Di Leo 

Peruvian Bruno Di Leo became general manager of computer giant IBM'S Latin American division in 2002. That was after he led IBM into a string of outsourcing contracts, one of which he signed with Brazilian telecommunications company Embratel for US$350 million. He also led the regional integration of PricewaterhouseCoopers' consulting division. Di Leo, who has been at IBM for 28 years now, was previously manager of the company's Brazilian unit, where he boosted growth by 25% in an overall technology market that was expanding by only 1.4%.

What is the most important trend or event of the past 10 years?

The evolution of the Internet. ... It brought about a new way people got access to a company's products. In only a couple of years, electronic commerce ceased to be an abstract concept and became an undeniable reality. This is something that works for every consumer, business and government. The fundamental values of electronic commerce--cost savings, revenue growth and customer satisfaction--are turning out to be just the tip of the iceberg. Upon realizing the benefits of conducting different business processes on the Internet, many companies are now looking for greater returns through investing in integrating e-commerce technologies and applications.

On the other hand, the surge of "on demand" technology has created a new world for many companies, one where it is no longer enough to be connected to a network or to do business transactions without having all elements of the business process integrated from beginning to end. This is how companies can respond to change and focus their cost structures in a manner that when a recession comes along, they can adjust those costs accordingly, and when demand returns, they will have the capacity to answer appropriately.

What about the next 10 years?

Business innovation. Let's think about some of the more urgent challenges that are facing our region and society today, such as speeding up economic development, staying competitive in today's global economy, and how to improve the quality of life for our people. These are complex issues without easy answers. But the key to resolving them can be expressed in one word-innovation. The capacity to innovate will be the determining factor of success and failure. That said, we should not confuse invention with innovation. Invention is the creation of something that didn't exist beforehand, like a piece of equipment or a new process. But how many of these inventions can really change our lives? How many inventions can spectacularly improve productivity, create new industries or find a cure for a disease? On its own, invention doesn't guarantee value. And that is where innovation enters the picture. True innovation begins at the intersection of invention and vision. It is the application of an invention that solves real problems.

George Soros 

Born in Budapest, Hungary, billionaire financier and philanthropist George Soros, 74, is famous for betting on emerging-market economies. He managed billions of dollars in Latin American assets in the early 1990s, years ahead of a Spanish wave of investments in the region. In 1997, Soros was Argentina's largest landowner and largest owner of livestock. He has also held real estate in Mexico, banks in Colombia and Venezuela, and telecommunications operations in Brazil.

Today, Soros is chairman of the Open Society Institute and heads up other philanthropic networks that operate in more than 50 countries. While he focuses heavily on Eastern Europe and the former Soviet Union, Soros' operations also fund economic and social development projects in Latin America.

In January 2002, the Open Society Institute launched the Latin American Program, which coordinates all of the institute's activities in the region. The program recognizes that the trend towards democracy in the region is rather firm and that the days of dictatorships are history, yet concerns have arisen due to the failure of democratic governments to deliver order in their respective societies. Democracy is threatened, as shown by the rise of populist authoritarianism regimes on both the right (Fujimori's Peru) and the left (Venezuela's Hugo Chavez) sides of the political sphere, according to the institute.

The institute believes that without a stable democracy, crime and poverty will rise and development and growth stalls. The Latin American Program seeks to help the governments in the region steer clear of populist authoritarianism.

Cesareo Fernandez Gonzalez

Cesareo Fernandez Gonzalez, current non-executive chairman of the board for Wal-Mart de Mexico, has a knack for turning company motto "everyday low prices" into big business. At the turn of the century, Fernandez led Wal-Mart on a US$1 billion expansion program that has brought Wal-Mart retail outlets to 64 cities and towns in Mexico. With annual sales exceeding $10 billion last year, combined with an army of 100,000 employees working in over 540 stores in the country, there is reason to think that the philosophy works as well as it did in the United States. Fernandez shares his views and ideas on Mexico, past, present and future.

What is the most important trend or event of the past 10 years?

Well, I would like to mention two events, starting with the capabilities and resilience of the Mexican economy during the crisis of 1994-1995. I believed it showed a macroeconomic stability that still is evident today. Over the past years, Mexico has also become one of the most open economies in the world, an openness that has simultaneously required both fiscal and monetary discipline.

From Wal-Mart de Mexico's point of view, I think that we have played an important role in the Mexican economy. Our philosophy of "everyday low prices" has helped to create a more dynamic and competitive retail sector. As well, our strategy is an important brake on inflation in Mexico.

The second event is in the social and political arena. Over the past 10 years, Mexico has become more democratic and free. ... Political transformation has indeed started in Mexico. But I emphasize 'start'. It is a process, and one that has not yet finished. It's barely just begun. This change is really a long-term transformation. We have already started to see some results, such as having a more democratic and open society, but many changes are yet to come. For instance, we are a more open and free society but we are not yet more just. You only need to look at the amount of poverty in the country. There is still much to do. Also I think the political parties in the country are not used to the dynamics of operating and working in a more democratic environment. In my view, they need to learn how to form alliances and pacts, focusing on specific issues, rather than trying to unite or oppose each other on all issues. There is so much political posturing, everyone trying to carve out his or her own political agenda without really thinking of the population at large. At the same time, however, I do think that, little by little, the political parties are starting to work better together and are creating a stronger social conscience. I mean we have no other choice. Just look at the level of insecurity, at the amount of kidnappings we have. These parties have to unite and start working together to fight this dangerous situation; work together, rather than try to blame each other.

What about the next 10 years?

Well, I think the most important event will be the continued transformation of the country, more democratic, more open, more just, more success in fighting poverty. This transformation will be the most crucial. In regards to justice, perhaps we need right now to have more severe punishment for criminals, such as those that commit these kidnappings. Yet it is a delicate issue. Many people commit crimes because of poverty.

If we make progress on the poverty front, we can make progress on the criminal front. ... Realistically speaking, I'm not a politician and so I can't really say why or why not our political leaders have not made many inroads into combating crime. I can only say that the business sector needs to contribute as well. For instance, our policy of "everyday low prices" helps. We are taking this strategy to many small Mexican towns that have never had any supermarkets whatsoever. Already we are in towns of only 50,000 to 80,000 inhabitants. By now having access to the same low prices as offered in Mexico City, we can contribute to the well-being of the population.

Adolfo Carvajal

Adolfo Carvajal, former head of the Colombian packaging, publishing and telecom conglomerate of the same name, never saw exporting as a problem. Nor was efficiency an issue. Instead, it was all about attitude. Carvajal, who died in 2002 at age 71, is considered to be one of the most outstanding business leaders in Colombia. For 17 years, he was president of the company, which he diversified and took to other Latin American countries despite the closed, protectionist economies surrounding Colombia at the time. Today, the multinational operates in 17 countries and employs more than 15,000. The Fundacion Carvajal, a charity that owns 36% of the business, has financed poverty-reduction programs across Colombia. Now the charity, too, is aiming to take its philanthropic focus abroad.