PRIVATIZATION &CARLOS SLIM IN MEXICO PRESENTED BY: OLLIESHA TRAVIS
WHAT IS PRIVATIZATION • Privatization is the incidence of process of transferring ownership of business from the public sector to the private sector.
TYPES OF PRIVATIZATION • Share issue privatization(SIP)- selling shares on the stock market. • Asset sale privatization –selling the entire firm or parts of it to a strategic investor. • Voucher privatization- shares of ownership are distributed to all citizens, usually for free or at a low price.
WHO IS CARLOS SLIM? • Wealthiest man in the world • Net worth= $67.9 billion USD (2007) • Born January 28, 1940 • Father from Lebanon • Studied engineering at University NacionalAutonoma de Mexico • Married SoumayaDomit n 1967 and had 6 children. • Wife died of Kidney ailment in 1999
CARLOS SLIM RISE TO SUCCESS August 8, 2007 featured in Fortune magazine. Surpassed Bill Gates who’s Net worth was $58 billion USD.
Beginning: the rise • 1965 with the bottling plant Jarritos del Sur but increased in 1970 when his assests became apart of Grupo Galas, now known as Grupo Carso. • During 1980’s more than 30 companys joined the group • Most successful transaction was Cigatam and the Sanborns chain
Carlos Slim is now the richest man in the world, thanks to his investments in telecommunications, financial services, and varies industries. Here is a breakdown of his major holdings. % of shares held Investment value America Movil (wireless) 30% $31 billion Carso Global Telecom 82% $12.9 billion Grupo Carso 75% $ 7.1 billion Inbursa (financial serv) 67% $5.6 billion Ideal (infrastructure) 30% $1.7 billion Saks Inc. (U.S retail) 10% $263 million Total: $58.5 billion
CARLOS SLIM ACHIEVEMENTS • VP of Mexican Stock Exchange • President of Mexican Association of Brokerage Houses • 1st president of Latin American Committee of New York Stock Exchange • Served in BOD for SBC Communication • Majority share holder of CompUSA and brought 3% of Apple Computer stock
CARLOS SLIM ACHIEVEMENTS-cont • Built Mexican financial-industrial empire (Grupo Carso) • Chairman of Telefonos de Mexico, America Movil • Awarded Entrpreneurial Merit Medal of Honor from Mexicos Chamber of Commerce. • Gold patron of the American Academy of Achievement
Philanthropy • Slim leads the Latin America Development Fund project and have a budget of 10 billion for 2008 growth • Bill Clinton stated “Carlos Slim is the most important philanthropist in the world and most people have never heard of him”.
Telecom Leadership • Slim gain accomplishments when he led investors such as France Telecom and Southwestern Bell Corp into buying Telmex and Telnor from the Mexican government in 1990. • Today 90% of telephone line are operated by Telmex which is owned by Carlos Slim.
Telecom -cont • Slim also owns Telcel which operates 80% of all its countries cell phones. • Slims wireless carrier America Movil has brought companies all across Latin America and is now the regions dominant company, with more than100 million subscribers. • Slim owned 13% of MCI and sold his stake to Verizon of the US on April 11, 2005.
IS PRIVATIZATION GOOD FOR MEXICO • According to some articles Carlos Slim privatization is not good for Mexico. Why: • Employment =only provides employment for a quarter of a million Mexican workers ( Wal-mart employees $1.7 millions Mexican in Mexico) • Poverty= have of the country lives under poverty lines, where the per capital income is under $6.800 dollars. While Slim has $63 billion • Border patrol=Immigration policy
Economic Conditions Slim’s fortune was built in a country in which 62% of the companies admit they set aside some of their income to pay bribes to government employees in order to obtain some benefit, and 30%of all public resources allocated to Government contracts are set aside for corruption. Furthermore, his fortune increased with the purchase of a state-owned company. During the 90’s, there were many privatization of State monopolies in Latin America, especially those with regard to electricity, petroleum, telecommunications and transport.
Pros of privatization • The aim was to promote these companies’ productivity and efficiency, and to make them work for the “protection” of the citizens, and not to depend on Government subsidies and promote corruption and the distribution of privileges. But in some cases, the only thing achieved was the transfer of public monopolies to private hands, often with the subsequent sale of public assets to the highest bidder and to the friends of the Presidential Palace.
Current Account Balance Mexico - 5,414 2007 est
GDP • GDP (PPP) 2006 estimate - Total $1.149 trillion (12th) - Per capita $11,249 (63rd) • GDP (nominal) 2006 estimate - Total $840.012 billion (short scale) (14th) - Per capita $8,066 (55th)
REFERENCES • http://www.mex.gov/assets/GDP/current account • http://en.wikipedia.org/wiki/carlosslim • http://english.martinvarsavsky.net/general/carlos-slim-is-the-richest-man-in-the-world-should-mexicans-be proud.html/trackback • http://en.wikipedia.org/wiki/Mexico • http://www.indexmundi.com/mexico/unemployment_rate.html