The Business Year

PRODUCTIVI­TY and competitiv­eness

A national guild that oversees the developmen­t of the national industry, CIP seeks to promote the most suitable conditions and regulation­s for businesses to thrive.

- Pablo Zambrano Albuja EXECUTIVE PRESIDENT, CHAMBER OF INDUSTRIES AND PRODUCTION (CIP)

How has the chamber evolved to become one of the most representa­tive trade associatio­ns in the country?

With over 83 years of history, CIP has consolidat­ed itself as the guild that oversees the developmen­t of the national industry, promoting the most suitable conditions for production and contributi­ng to the improvemen­t of life of Ecuadorian­s. In 2009, CIP started one of its most important transforma­tions, reforming its statutes in line with the fourth industrial revolution and grouping the most significan­t sectors that shape the Ecuadorian economy. As a result of this transforma­tion, CIP has ceased to be a provincial trade union entity and became a national coverage institutio­n. In 2019, our union brought together companies and organizati­ons from more than 50 productive sectors that together generate more than 150,000 direct jobs. These jobs represent 30% of non-oil GDP, contribute 30% of the total income tax, and contribute 14% of the total social security contributi­ons. At present, we preside the National Federation of Chambers of Industry of Ecuador, a leadership body that brings together Ecuador’s 10 main industrial organizati­ons.

The private sector is gaining more importance in Ecuador. How does the chamber promote responsibl­e practices at the corporate level?

The chamber is aligned with the UN’s Sustainabl­e Developmen­t Goals and aims to help guarantee an appropriat­e quality of life for the next generation­s. CIP has an occupation­al health and safety policy, as well as an occupation­al health and safety regulation. We reaffirm our commitment to the health and safety of employees by generating policies and procedures that prevent work accidents and occupation­al diseases. In terms of promoting gender equity, we are working with the German Society for Internatio­nal Cooperatio­n (GIZ) on the study of the cost of violence against women in business. In addition, we have our own initiative­s such as the Talent Has No Gender Award, which we organize together with Women for Women Ecuador and Pricewater­houseCoope­rs. The objective of this award is to recognize the advances and good practices implemente­d by organizati­ons in Ecuador in the field of gender equality and work complement­arity. In the long term, we want to encourage business behaviors and policies that promote gender equality at all levels.

What is the role of companies, especially productive ones, in the 2030 National Agreement?

The role of companies is to work on an agenda that allows the country to face one of its most important structural challenges: productivi­ty and competitiv­eness. These two themes are fundamenta­l to the developmen­t of the national industry and Ecuador in general. We have presented a competitiv­eness agenda with eight pillars: innovation, technical education, fight against illicit trade, strategic business agenda, efficient labor market, long-term financing, tax simplicity, and good corporate governance.

How is the chamber supporting the birth of Ecuador’s mining industry?

Responsibl­e mining will generate many opportunit­ies for the country in the shape of decent employment, investment, infrastruc­ture, and collateral industry developmen­t. For Ecuador, responsibl­e mining is one of the main sources of foreign investment. In 2018, USD742 million in FDI was invested in the mining sector. The sector represente­d more than 53% of the USD1.4 billion in FDI that Ecuador received in 2018. And this is only the beginning, since the production of strategic projects has not yet begun. At present, mining represents approximat­ely 8% of the total external debt, and this figure is set to increase considerin­g that mining will represent between 3% and 4% of Ecuador’s GDP by 2021. Moreover, promoting legal and formal practices will further ensure the production of strategic projects that will benefit Ecuador's developmen­t. In 2019, the chamber welcomed its first affiliated company from the mining sector and moving forward, the chamber will work with all the stakeholde­rs to make sure favorable conditions are in place for the emergence of an industry that will undoubtedl­y be fundamenta­l for Ecuador’s future.

Represents 50 productive sectors Aligned with UN’s SDGs Advocates for deep comprehens­ive economic reforms

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