EGADE Business School’s Decalogue for the Economic-Business Refounding of Mexico maintains that country can rethink its regional orientation and leverage its ethnic, cultural and biological diversity as a competitive advantage.

By COMUNICACIÓN INSTITUCIONAL | EGADE BUSINESS SCHOOL

Some of the most visible consequences of COVID-19 pandemic are the ones that have affected globalization, world trade and multilateralism, areas where Mexico should rethink its role in the world.

Disruption in global supply chains, failures in the global governance system and the new geopolitical balances place the country in a situation that it can capitalize to renovate Mexico’s relevance in the international arena.  

This is revealed in three of the ten keys of the Decalogue for the Economic-Business Refounding of Mexico, published in July this year by EGADE Business School - Tecnológico de Monterrey:

Capitalize the opportunities of a new scheme of globalization and trade regionalization

• The coronavirus pandemic has interrupted the major global supply chains, demonstrating their fragility. The new post-COVID-19 reality puts a brake on everything related to globalization, megalopolis growth, and the conservation of global, fragmented supply chains that are geographically distant from the main operations and with little control from productive economies, forcing them to rethink their regional orientation and configure a new map of opportunities that, as a country, we should not miss out on.
   
• Mexico has an enormous opportunity to reindustrialize and diversify its trade, underpinning and growing the export market through new agreements signed with the USA and Canada  (USMCA) and the European Union (FTA EU-MX). In addition, it should identify new value chains based on the installed capacity of the country’s productive system and create a diversified economy with capabilities to compete on the regional and global levels.

Embrace digital transformation and the 4th Industrial Revolution  

• The drastic closure of companies and activities, migration to online education formats, and the shift of millions of jobs to the telework modality, as a strategy to fight the pandemic, has demonstrated the need to accelerate digital transformation, particularly in SMEs and strategic sectors, such as commerce.
   
• COVID-19 has highlighted the urgency of having a national program for the adoption of sales and distribution technologies for proximity commerce that will increase and diversify client bases and revenues and protect jobs, as well as of incorporating better e-commerce tools and logistics support mechanisms. The country should use the 4th Industrial Revolution to leverage its ethnic, cultural and biological diversity as a competitive advantage.

Strengthen global governance and multilateralism

• Facing the challenges of the future requires a meta-leadership that transcends the needs and capacities of a single institution or interest group, that cares about the common interest and incorporates the capacities of diverse groups—affected communities, government institutions, business sectors, civil society, and universities.
   
• The most effective solutions will be cocreated by integrating the capacities of companies and institutions, and rooted in the capacities, interests, and creativity of communities. A multilateral governance system can be the way to bring these interconnected realities together, recognizing the validity of diverse points of view, and acting in a more coordinated manner to tackle challenges that are global.

The complete document of EGADE Business School’s Decalogue for the Economic-Business Refounding of Mexico can be downloaded here.