South American States of the Future 2016

REGIONS
South American States of the Future
South American
States of the Future
2016/17
Winners
São Paulo has retained the top spot in the South American
States of the Future ranking for 2016/17, with Buenos Aires
Autonomous City rising to claim second place and Rio de
Janeiro ranking third. Cathy Mullan reports
F
or the second time in a row,
Brazil’s most populous state of
São Paulo has been named fDi’s
South American State of the Future.
The state ranked first in both the
Economic Potential and Human
Capital and Lifestyle categories of the
ranking, second in Connectivity and
Business Friendliness and third in FDI
Strategy. The state attracted the highest number of inward FDI projects of
all states analysed. In total, 870 projects were recorded between 2011 and
2015, according to greenfield investment monitor fDi Markets.
The highest proportion of investments in São Paulo were in the software and IT sector, which attracted 17%
of all projects. US-based Rocket Fuel, a
digital ad sales company, invested in
São Paulo in January 2015, stating that
“Brazil is primed to be a Latin American
bellwether for programmatic media”,
while US-based Search Optics said of its
June 2015 investment in the state: “The
opportunity in Brazil is huge.” São
Paulo state is home to the ‘Brazilian
Silicon Valley’ region of Campinas, an
area close to São Paulo city with a focus
on research and innovation. Of all
states in South America, São Paulo
attracted the highest number of R&D
FDI projects.
R&D investment in São Paulo state
reached a peak in 2012, then fell by
55% in 2013. However, there have been
26
TOP 25 South American States of the Future 2016/17: overall
RANKState
country
1
São Paulo
2
Buenos Aires Autonomous City
3
Rio de Janeiro
4Bogotá
5
Metropolitana de Santiago
6Antofagasta
7
Buenos Aires Province
8Paraná
9
Rio Grande do Sul
10Lima
11Atacama
12
Minas Gerais
13
Santa Catarina
14Montevideo
15Atlantico
16Pichincha
17
Tierra del Fuego
18Flores
19Antioquia
20
Santa Fé
21Guayas
22Casanare
23
Rio Negro 24Maldonado
25Callao
Brazil
Argentina
Brazil
Colombia
Chile
Chile
Argentina
Brazil
Brazil
Peru
Chile
Brazil
Brazil
Uruguay
Colombia
Ecuador
Argentina
Uruguay
Colombia
Argentina
Ecuador
Colombia
Uruguay
Uruguay
Peru
www.fDiIntelligence.com
April/May 2016
REGIONS
South American States of the Future
year-on-year increases in the number
of R&D projects recorded since 2013,
signalling a slight improvement in
the R&D investment landscape. Chinabased BYD, a manufacturer of
rechargeable batteries and automobiles, invested in Campinas in July
2014, crediting its investment decision to the city’s “spirit of innovation”.
Campinas is home to many universities, which contributes greatly to the
research environment in the state.
São Paulo boasts the highest number
of higher education institutions of all
states in the study, which contributed
to the state’s first place ranking in the
Human Capital and Lifestyle category.
Twelve of the state’s universities are
featured in the QS University
Ranking’s list of Top 300 Universities
in Latin America, and 1.6 million students study in São Paulo, the highest
number of any state analysed.
Buenos Aires on the rise
Buenos Aires Autonomous City in
Argentina ranked in second place in
this year’s ranking. The state rose from
fourth place in 2014/15, ranking second in the Human Capital and Lifestyle
category and third in both Economic
Potential and Business Friendliness. Of
the 106 FDI projects that were recorded
in the state between 2011 and 2015, 24
investments were made by companies
in the software and IT sector.
Capital expenditure in software
and IT peaked in Buenos Aires
Autonomous City in 2015, having suffered declines in 2013 and 2014. In
November 2015, US-based Bluesmart,
a developer of smart luggage,
announced a $100m investment in
the state, establishing an R&D centre
that will create about 150 jobs.
Thirteen of the state’s universities are featured on the QS ranking
of Top 300 Universities in Latin
America, the joint-highest of all
states analysed (along with Brazil’s
Minas Gerais), and Buenos Aires
Autonomous City’s student population is one of the highest of all South
American states (as a percentage of
its total population).
Rio de Janeiro, Brazil’s second largest state, ranked third in this year’s
ranking. The state performed well in
several categories, notably ranking
second place in Economic Potential.
Almost 250 FDI projects were recorded
in the state between 2011 and 2015,
with the automotive OEM sector commanding the highest level of capital
investment of all sectors. ■
April/May 2016
www.fDiIntelligence.com
Top 10 South American States
of the Future 2016/17 –
Economic Potential Overall
Top 10 South American States
of the Future 2016/17 – Human
Capital and Lifestyle overall
RANKState
RANKState
1
2
3
4
5
6
7
8
9
10
country
country
São PauloBrazil
Rio de Janeiro
Brazil
Buenos Aires AC
Argentina
Metro. de Santiago
Chile
AntofagastaChile
BogotáColombia
AtacamaChile
LimaPeru
ParanáBrazil
Tierra del Fuego
Argentina
1São Paulo
Brazil
2
Buenos Aires AC
Argentina
3
LimaPeru
4
PichinchaEcuador
5
Minas Gerais
Brazil
6
Metro. de Santiago
Chile
7
Bogotá
Colombia
8
GuayasEcuador
9
MontevideoUruguay
10 Buenos Aires Prov.
Argentina
Top 10 South American States
of the Future 2016/17 – Cost
Effectiveness overall
Top 10 South American States
of the Future 2016/17 –
Connectivity overall
RANKState
RANKState
1
2
3
4
5
6
7
8
9
10
country
CochabambaBolivia
OruroBolivia
AyacuchoPeru
ApurimacPeru
La Paz
Bolivia
ChimborazoEcuador
JuninPeru
ItapuaParaguay
LambayequePeru
CotopaxiEcuador
country
1
Buenos Aires Prov.
Argentina
2São PauloBrazil
3
Rio de Janeiro
Brazil
4
Bogotá
Colombia
5
Buenos Aires AC
Argentina
6
MontevideoUruguay
7
CallaoPeru
8
Metro. de Santiago
Chile
9
ParanáBrazil
10 Rio Grande do Sul
Brazil
Top 10 South American
States of the Future 2016/17 –
Business Friendliness overall
RANKState
country
1São PauloBrazil
2
Bogotá
Colombia
3
Buenos Aires AC
Argentina
4
Rio de Janeiro
Brazil
5
Buenos Aires Prov.
Argentina
6
AtlanticoColombia
7
AntioquiaColombia
8
CundinamarcaColombia
9
CuzcoPeru
10 ParanáBrazil
27
REGIONS
South American States of the Future
Major states
Top 10 Major South American States of
the Future 2016/17 – overall
RANKState
1
2
3
4
5
6
7
8
9
10
country
São Paulo
Brazil
Rio de Janeiro
Brazil
BogotáColombia
Metropolitana de Santiago Chile
Buenos Aires Province
Argentina
ParanáBrazil
Rio Grande do Sul
Brazil
LimaPeru
Minas Gerais
Brazil
Santa Catarina
Brazil
Top 10 Major South American States
of the Future 2016/17 – Human Capital
and Lifestyle
RANKState
1
2
3
4
5
6
7
8
9
10
country
São Paulo
Brazil
LimaPeru
Minas Gerais
Brazil
Metropolitana de Santiago Chile
BogotáColombia
GuayasEcuador
Buenos Aires Province
Argentina
ParanáBrazil
Rio de Janeiro
Brazil
Rio Grande do Sul
Brazil
Top 10 Major South American States of
the Future 2016/17 – Connectivity
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires Province
Argentina
São Paulo
Brazil
Rio de Janeiro
Brazil
BogotáColombia
Metropolitana de Santiago Chile
ParanáBrazil
Rio Grande do Sul
Brazil
Santa Catarina
Brazil
BahiaBrazil
GuayasEcuador
Top 10 Major South American States of
the Future 2016/17 – Economic Potential
RANKState
1
2
3
4
5
6
7
8
9
10
country
São Paulo
Brazil
Rio de Janeiro
Brazil
Metropolitana de Santiago Chile
BogotáColombia
LimaPeru
ParanáBrazil
Rio Grande do Sul
Brazil
Buenos Aires Province
Argentina
Santa Catarina
Brazil
Minas Gerais
Brazil
Top 10 Major South American States of
the Future 2016/17 – Cost Effectiveness
RANKState
1
2
3
4
5
6
7
8
9
10
country
GuayasEcuador
LimaPeru
MaranhaoBrazil
GoiasBrazil
PernambucoBrazil
Minas Gerais
Brazil
BahiaBrazil
CearaBrazil
ParáBrazil
Metropolitana de Santiago Chile
Top 10 Major South American States of
the Future 2016/17 – Business
Friendliness
RANKState
1
2
3
4
5
6
7
8
9
10
country
São Paulo
Brazil
BogotáColombia
Rio de Janeiro
Brazil
Buenos Aires Province
Argentina
AntioquiaColombia
ParanáBrazil
Rio Grande do Sul
Brazil
Metropolitana de Santiago Chile
LimaPeru
Valle del Cauca
Colombia
São Paulo
is the overall
winner and
the leading
major state
for economic
potential,
human capital
and business
friendliness
28
www.fDiIntelligence.com
April/May 2016
REGIONS
South American States of the Future
Large states
Top 10 Large South American States
of the Future 2016/17 – overall
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires AC
Argentina
AtlanticoColombia
PichinchaEcuador
Santa Fé
Argentina
Cordoba Argentina
Federal District
Brazil
BolivarColombia
CundinamarcaColombia
ValparaisoChile
SantanderColombia
Top 10 large South American States of
the Future 2016/17 – Human Capital
and Lifestyle
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires AC
Argentina
PichinchaEcuador
ValparaisoChile
Bío Bío
Chile
CordobaArgentina
Santa Fé
Argentina
Federal District
Brazil
Capital DistrictVenezuela
TucumanArgentina
La Libertad
Peru
Top 10 Large South American States of
the Future 2016/17 – Connectivity
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires AC
Argentina
Santa Fé
Argentina
CordobaArgentina
BolivarColombia
AtlanticoColombia
ValparaisoChile
MendozaArgentina
AmazonasBrazil
Federal District
Brazil
PichinchaEcuador
Top 10 large South American States of
the Future 2016/17 – Economic Potential
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires AC
Argentina
PichinchaEcuador
AtlanticoColombia
Federal District
Brazil
AmazonasBrazil
Santa Fé
Argentina
BolivarColombia
SantanderColombia
ValparaisoChile
CundinamarcaColombia
Top 10 Large South American States of
the Future 2016/17 – Cost Effectiveness
RANKState
1
2
3
4
5
6
7
8
9
10
country
CochabambaBolivia
La Paz
Bolivia
CajamarcaPeru
PiuraPeru
Santa Cruz
Bolivia
La Libertad
Peru
CentralParaguay
CundinamarcaColombia
Bío Bío
Chile
PichinchaEcuador
Top 10 Large South American States of
the Future 2016/17 – Business
Friendliness
RANKState
1
2
3
4
5
6
7
8
9
10
country
Buenos Aires AC
Argentina
AtlanticoColombia
CundinamarcaColombia
Santa Fé
Argentina
SantanderColombia
BolivarColombia
CordobaArgentina
Federal District
Brazil
MendozaArgentina
CentralParaguay
Buenos Aires
Autonomous
City finished
second in the
overall
ranking,
and was the
standout
Large state in
South America
30
www.fDiIntelligence.com
April/May 2016
Mid-sized states
Top 10 Mid-Sized South American
States of the Future 2016/17 – overall
RANKstate
1
2
3
4
5
6
7
8
9
10
country
AntofagastaChile
MontevideoUruguay
CallaoPeru
CuzcoPeru
ArequipaPeru
CoquimboChile
MetaColombia
CanelonesUruguay
Capital District
Paraguay
IcaPeru
Top 10 Mid-Sized South American
States of the Future 2016/17 –
Economic Potential
RANKstate
1
2
3
4
5
6
7
8
9
10
country
AntofagastaChile
MontevideoUruguay
CuzcoPeru
MetaColombia
ArequipaPeru
CoquimboChile
CallaoPeru
IcaPeru
Los Lagos
Chile
Capital District
Paraguay
Top 10 Mid-Sized South American
States of the Future 2016/17 –
Human Capital and Lifestyle
RANKstate
1
2
3
4
5
6
7
8
9
10
country
MontevideoUruguay
ManabíEcuador
TungurahuaEcuador
ChimborazoEcuador
AntofagastaChile
La Araucania
Chile
MauleChile
CoquimboChile
CanelonesUruguay
Los Lagos
Chile
Top 10 Mid-Sized South American
States of the Future 2016/17 –
Cost Effectiveness
RANKstate
1
2
3
4
5
6
7
8
9
10
country
OruroBolivia
AyacuchoPeru
ChimborazoEcuador
JuninPeru
ItapuaParaguay
LambayequePeru
ManabíEcuador
PunoPeru
TungurahuaEcuador
EsmeraldasEcuador
April/May 2016
www.fDiIntelligence.com
31
REGIONS
South American States of the Future
Mid-sized states (continued)
Top 10 Mid-sized South American States
of the Future 2016/17 – Connectivity
RANKState
1
2
3
4
5
6
7
8
9
10
country
MontevideoUruguay
CallaoPeru
AntofagastaChile
CanelonesUruguay
Rio Negro
Argentina
RisaraldaColombia
ChubutArgentina
SaltaArgentina
Norte de Santander
Colombia
NeuquenArgentina
Top 10 mid-sized South American
States of the Future 2016/17 –
Business Friendliness
RANKState
1
2
3
4
5
6
7
8
9
10
country
CuzcoPeru
RisaraldaColombia
AntofagastaChile
MontevideoUruguay
CaldasColombia
MagdalenaColombia
MetaColombia
TolimaColombia
CaucaColombia
Capital District
Paraguay
Small states
Top 10 small South American States
of the Future 2016/17 – overall
RANKState
1
2
3
4
5
6
7
8
9
10
country
AtacamaChile
Tierra del Fuego
Argentina
FloresUruguay
CasanareColombia
Rio Negro Uruguay
MaldonadoUruguay
TarapacaChile
Santa Cruz Argentina
Demerara-MahaicaGuyana
MoqueguaPeru
Top 10 small South American States of
the Future 2016/17 – Human Capital
and Lifestyle
RANKState
1
2
3
4
5
6
7
8
9
10
country
Arica y Parinacota
Chile
Los Rios Chile
TarapacaChile
CotopaxiEcuador
MaldonadoUruguay
AtacamaChile
San Luis
Argentina
SaltoUruguay
PaysanduUruguay
CatamarcaArgentina
Top 10 small South American States of
the Future 2016/17 – Connectivity
RANKState
1
2
3
4
5
6
7
8
9
10
32
country
MaldonadoUruguay
Tierra del Fuego
Argentina
Demerara-MahaicaGuyana
Santa Cruz Argentina
VargasVenezuela
CasanareColombia
FloridaUruguay
ColoniaUruguay
Treinta y Tres
Uruguay
FloresUruguay
Top 10 small South American States of
the Future 2016/17 – Economic Potential
RANKState
1
2
3
4
5
6
7
8
9
10
country
AtacamaChile
Tierra del Fuego
Argentina
FloresUruguay
Rio Negro Uruguay
Santa Cruz Argentina
MoqueguaPeru
TarapacaChile
MaldonadoUruguay
CasanareColombia
Demerara-MahaicaGuyana
Top 10 small South American States of
the Future 2016/17 – Cost Effectiveness
RANKState
1
2
3
4
5
6
7
8
9
10
country
ApurimacPeru
CotopaxiEcuador
TacnaPeru
UcayaliPeru
Demerara-MahaicaGuyana
TumbesPeru
CasanareColombia
PutumayoColombia
MoqueguaPeru
Arica y Parinacota
Chile
Top 10 small South American States of
the Future 2016/17 – Business
Friendliness
RANKState
1
2
3
4
5
6
7
8
9
10
country
CasanareColombia
PutumayoColombia
Treinta y Tres
Uruguay
Tierra del Fuego
Argentina
San Jose
Uruguay
FloresUruguay
MaldonadoUruguay
Demerara-MahaicaGuyana
ColoniaUruguay
ParamariboSuriname
www.fDiIntelligence.com
April/May 2016
REGIONS
North American
South
cities
American
and regions
States of
OF the
THE Future
FUTURE
FDI Strategy
Top 10 Xxxxxxx xxxxxxx xxxxxxx
xxxxxxxxxx xxxxxxxxxx
RANKcity
1
2
3
4
5
6
7
8
9
10
P
Fact box
first line
1
XxxxxxxXxxxxx
2
XxxxxxxXxxxxx
in bold, The
3
XxxxxxxXxxxxx
rest in thin
4
XxxxxxxXxxxxx
5
XxxxxxxXxxxxx
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6
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xxxxxxx xxxxx
7
XxxxxxxXxxxxx
tax rate, the
import of raw
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xxxx xxx
XxxxxxxXxxxxx
materials 9
and sector-specific
finanEditors’
choice
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xxxxx
10 The
XxxxxxxXxxxxx
cial incentives.
agency promotes
itself through mobile apps across
xxxxxStates
xxxxx
Top 10 South American
of the
country
XxxxxxxXxxxxx
XxxxxxxXxxxxx
XxxxxxxXxxxxx
XxxxxxxXxxxxx
XxxxxxxXxxxxx
XxxxxxxXxxxxx
XxxxxxxXxxxxx
lans
are in place for a signifiXxxxxxxXxxxxx
XxxxxxxXxxxxx
cant
increase in staff numbers
XxxxxxxXxxxxx
at
state investment agency for
Top 10 Xxxxxxx xxxxxxx xxxxxxx
xxxxxxxxxx xxxxxxxxxx
RANKcity
country
Paraná, APD (Paraná Development
Agency), which is reaping the various platforms, as well as
future 2016/17 – FDI Strategy
RANKState
country
rewards
a 55% increase
budget through an
active
presence
on its xxxxxxx
Top 10 of
Xxxxxxx
xxxxxxxin
xxxxxxx
Top
10 Xxxxxxx
xxxxxxx
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
between
2015xxxxxxxxxx
and 2016, with plans websites and
social media
accounts.
1
Paraná
Brazil
RANKcity
countryInvest in Bogotá
RANKcity
2country
BogotáColombia
for
a further 20% increase by 2020,
is proactive in plan1
XxxxxxxXxxxxx
1
XxxxxxxXxxxxx
3
São Paulo
Brazil
and is the winner of fDi’s South ning and attending networking and
2
XxxxxxxXxxxxx
2 events,
XxxxxxxXxxxxx
4
PernambucoBrazil
American
States of the Future promotional
and targets spe3
XxxxxxxXxxxxx
3
XxxxxxxXxxxxx
5
Rio de Janeiro
Brazil
2016/17 FDI Strategy award. The cific markets to this end. The agency
4
XxxxxxxXxxxxx
4
XxxxxxxXxxxxx
6
AntioquiaColombia
agency is currently embarking upon also places a focus on aftercare ser5
XxxxxxxXxxxxx
5
XxxxxxxXxxxxx
7
Valle del Cauca
Colombia
a6 new XxxxxxxXxxxxx
digital strategy, to include vices, to ensure
further success in
6
XxxxxxxXxxxxx
8
RisaraldaColombia
new
analytical
and
web
tools
to
proattracting
reinvestments
and
expan7
XxxxxxxXxxxxx
7
XxxxxxxXxxxxx
9
BarranquillaColombia
mote
its
strengths to potential inves- sions that 8
mightXxxxxxxXxxxxx
result from any ini8
XxxxxxxXxxxxx
10
Minas Gerais
Brazil
tors.
A
new
website
is
under
developtial
investments.
9
XxxxxxxXxxxxx
9
XxxxxxxXxxxxx
ment,
which
will improve the agenAn ‘anchor
strategy is
10
XxxxxxxXxxxxx
10 company’
XxxxxxxXxxxxx
cy’s online presence and extend and also in place, which focuses on
refresh its reach. The agency is cur- attracting major investors whose
rently
very
active xxxxxxx
on social media – presence in
the10
state
will result
in xxxxxxx
Top 10
Xxxxxxx
Top
Xxxxxxx
xxxxxxx
including
and will
strengthen
xxxxxxxxxx
xxxxxxxxxx
RANKcityon Facebook, LinkedIn
countrycluster activity
RANKcity
country
and
– and liaises closely with supply chains.
Some major infra1 Twitter
XxxxxxxXxxxxx
XxxxxxxXxxxxx
the
government news chan- structure 1developments
are under
2 official
XxxxxxxXxxxxx
nel
the state’s profile to way in the2state,XxxxxxxXxxxxx
including the con3 to increase
XxxxxxxXxxxxx
4
XxxxxxxXxxxxx
international
investors.
struction 3
of the XxxxxxxXxxxxx
first metro line in
4 while
XxxxxxxXxxxxx
5 APD
XxxxxxxXxxxxx
is engaged in the organisa- Bogotá city,
the Bogotá@21
XxxxxxxXxxxxx
6 of XxxxxxxXxxxxx
tion
international roadshows and district is 5
set to become
a smart dis6
XxxxxxxXxxxxx
7
XxxxxxxXxxxxx
events
to showcase and promote the trict, providing
young entrepreXxxxxxxXxxxxx
8
state
asXxxxxxxXxxxxx
an investment destination, neurs and7 companies
a research8
XxxxxxxXxxxxx
9
XxxxxxxXxxxxx
and the state also plays host to major focused environment
in which to
9
XxxxxxxXxxxxx
10
XxxxxxxXxxxxx
investor
forums and conferences for flourish.
10
XxxxxxxXxxxxx
South America. A new subway sysSão Paulo, fDi’s South American
xxxxxxxxx
tem is currently being constructed State of the Future for 2016/17, has
xxxxxxxxxxxx
in Curitiba, the state’s capital. ranked third for FDI Strategy. The
Top
10
Xxxxxxx
xxxxxxx
xxxxxxx
Top
10
Xxxxxxx
xxxxxxx
xxxxxxx
Additional infrastructure develop- state agency responsible for investxxxxxxxxxx xxxxxxxxxx
xxxxxxxxxx xxxxxxxxxx
ments
are under way, including
Investe São Paulo,
RANKcity
countryment promotion,
RANKcity
country
‘Project
Red Foot’, a new metropoli- offers its 1
large workforce
training
1
XxxxxxxXxxxxx
XxxxxxxXxxxxx
tan
system that will connect 13 programmes
specialist invest2 train
XxxxxxxXxxxxx
2 from
XxxxxxxXxxxxx
cities
and
will serve nearly 2 million ment promotion
bodies, including
3
XxxxxxxXxxxxx
3
XxxxxxxXxxxxx
people
when completed.
t h e I n t4e r n a tXxxxxxxXxxxxx
ional Finance
4
XxxxxxxXxxxxx
the World Bank, as
5
XxxxxxxXxxxxx Corporation
5 andXxxxxxxXxxxxx
6
XxxxxxxXxxxxx
6
XxxxxxxXxxxxx
Bogotá
bounds in
well as renowned
universities. The
7
XxxxxxxXxxxxx
7
XxxxxxxXxxxxx
Colombia’s
largest state, Bogotá, has agency’s website
was developed in
8
XxxxxxxXxxxxx
8
XxxxxxxXxxxxx
finished
second in this year’s study accordance
wit
h t he Global
9 FDIXxxxxxxXxxxxx
XxxxxxxXxxxxx
for
Strategy. Staff at Invest in Investment9 Promotion
Best Practices
10
XxxxxxxXxxxxx
10the World
XxxxxxxXxxxxx
Bogotá,
the state agency for invest- Guide from
Bank, and feament promotion, are organised and tures a new matchmaking tool – Find
work in team structures closely a Business Partner – which helps conaligned to key target sectors for the nect entrepreneurs, investors, disstate, which include BPO, shared ser- tributors and supply chain partners.
vices, software and IT and manufac- Investe São Paulo keeps potential
turing industries.
investors abreast of new developA special regime for free-trade ments in the state via a monthly
zones operates in the state, which newsletter, and the publication of its
allows companies to invest in loca- annual magazine, which highlights
tions benefiting from a preferential recent investments in the state. ■
“Quisque
turpis lorem,
porta nec
venenatis
nec. Mauris
viverra iaculis nisl a
hendrerit.
Proin fringilla vehicula
lacus, luctus
luctus mi. ”
April/May
2016 www.fDiIntelligence.com
www.fDiIntelligence.com
Month/2016
33
REGIONS
South American States of the Future
Antofagasta
in Chile is fDi’s
leading midsized state of
the future,
and also
finished top of
the mid-sized
states economic
potential list
Methodology
To create a shortlist for the fDi South
American States of the Future 2016/17,
the fDi Intelligence division of the
Financial Times collected data using
the specialist online FDI tools fDi
Benchmark and fDi Markets as well as
other sources.
Data was collected for 133 locations, under five categories: Economic
Potential, Human Capital and
Lifestyle, Cost Ef fectiveness,
Infrastr ucture and Business
Friendliness. Locations scored up to a
maximum of 10 points for each data
point, which were weighted by importance to the FDI decision-making process in order to compile both the subcategory rankings as well as the overall
South American States of the Future
2016/17 ranking.
In addition, surveys were collected
under a sixth category, FDI Strategy,
for which there were 28 submissions.
In this category, locations submitted
details about their strategy for promoting FDI, which was then scored by
fDi’s judging panel. ■
JUDGING CRITERIA
Economic potential
•Population
•Average annual population growth rate
(%)
•Unemployment rate
•Inflation rate
•GDP (PPP current $) (millions)
•GDP per Capita (PPP current
international $)
•Average annual GDP growth rate
(2009-2014)
•Projected average annual GDP growth
rate (2015-2020)
•Outward FDI (2011-2015)
•Outward FDI per 100,000 people
(2011-2015)
•Inward FDI (2011-2015)
•Inward FDI per 100,000 people
(2011-2015)
•FDI in R&D and DDT (2011-2015)
•FDI in advanced manufacturing
(2011-2015)
•Number of megaprojects by capex
(more than $100m) (2011-2015)
•Number of megaprojects by capex
(more than $100m) per 100,000 people
(2011-2015)
•Number of megaprojects by jobs (more
than 1000 jobs) (2011-2015)
34
•Number of megaprojects by jobs (more
than 1000 jobs) per 100,000 people
(2011-2015)
•Number of patents (2003-2015)
•Number of patents per 100,000 people
(2003-2015)
Human Capital and Lifestyle
•Labour force as % of population
•Secondary enrollment rate (%)
•Tertiary enrollment rate (%)
•Education expenditure (% of GNI)
• Number of higher education institutions
•Number of IB schools
•QS University Rankings: Latin America
2015 Top 300 universities
•Number of students
•Third level students as % of population
•Ability to attract and retain talent
•Physicians (per 1000 people)
•Life expectancy
Cost Effectiveness
•Average salary ($) for unskilled worker
•Average salary ($) for semi-skilled
worker
•Average salary ($) for skilled worker
•4*/5* hotel in city centre ($ per night)
•Minimum wage ($ per month)
•Cost of establishing a business (absolute
value using GNI)
•Cost of registering a property (absolute
value using GNI)
•Cost of construction permits (% of
warehouse value)
•Petrol prices ($ per litre)
•Cost of establishing an electricity
connection (absolute value using GNI)
•Corporation tax rate (%)
•VAT/common indirect tax rate (%)
•Total tax rate, % of profit
•Country PPP/exchange rate 2015
Connectivity
•Upload speed (kb/s)
•Download speed (kb/s)
•Percentage of people using the internet
(%)
•ICT Development Index
•Mobile phone subscribers (2014) per
capita
•Number of airports within the state
•Number of international destinations
served
•Number of ports (medium+)
•Liner Shipping Connectivity Index 2014
•Environmental Performance Index 2014
•Logistics Performance Index 2014
•Networked Readiness Index 2014
•Quality of overall infrastructure
•Quality of roads
•Quality of railroad infrastructure
•Companies in transportation per
100,000 people
Business Friendliness
•Total number of companies within the
knowledge based sector 2014
•Proportion of companies within the
knowledge based sector 2014 (%)
•Number of companies within the
knowledge based sector per 100,000
population
•Number of jobs created by all inward FDI
(2011-2015)
•Number of expansion/co-location
projects (2011-2015)
•Top 1000 World Banks 2015
(The Banker)
•FT Global 500 companies (2015)
•Corporation tax rate (%)
•Days taken to start a business
•Firing costs
•Ease of doing business index 2015
•Strength of Investor Protection Index
•Index of Economic Freedom
•Corruption Perception Index 2015
www.fDiIntelligence.com
April/May 2016