Grupo Carso’s Plans for 2011
Mr. Carlos Slim announced that Grupo Carso will invest 44.65 billion pesos in 2011, meaning a 13.6% increase from the year before.
Mexico City, January 31st, 2011
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Mr. Carlos Slim Helú press conference, January 31st, 2011. (continue)
Question: No, not in the business sphere, we see you daily in the newspapers, but for example in issues such as the Chapultepec Agreement, and so on.
Carlos Slim Helú: I still believe the Chapultepec Agreement is very good, crucial and convenient. Please read it again. It calls for physical and legal security, sustainable high growth, with employment, formation and development of human capital, formation and development of physical capital, and the administrative and fiscal reforms necessary to achieve those goals. Where are we working? In order to attain the aforementioned objectives we are aiming at health, education, and our university. We are focused in many projects of digital education as stated precisely in point 4 of the Agreement. There is nothing we can do regarding points 1 and 2. Point 3 we can be tackled through investment. I believe it is important that we all invest in high and sustainable growth, with sustainable employment. And the only way to achieve this is through investment.
Question: What are your predictions for 2012? Who will win?
Carlos Slim Helú: I don’t know. What is your prediction? What is really important is that the country adopts state policies and fortifies its institutions to make them very strong. We need well-defined state policies that create stability, so that there are no major changes no matter who comes out on top. Take the example of Brazil, Chile, or even Peru and Colombia. It is important to have strong Constitutions, clear state policies, as well as programs and agreements such as those of Chapultepec. We are working on the Chapultepec agreements in three specific topics: maximum growth, investment and development of human and physical capital. That is the origin of IDEAL. This is why it exists. This is the reason why we bid for so many projects. Do you know how many times we have participated in bids for projects in the past three years? 30, 40 or more.
Question: As a token of your commitment, you always said you did not own a home or even an apartment outside of Mexico; yet you have just bought a building on New York City’s 5th Avenue. Are you planning to become a real estate developer? Do you plan to live in one of those apartments?
Carlos Slim Helú: For me it is more comfortable to stay at a hotel, 2 or 3 days, as I always do. I don’t have to take care of anything. I get all the services there, room service, everything.
Question: Can you tell us the amount of total investments or expenses made by all the Group’s foundations? How much have you planned for 2011? Can you tell us a round figure for 2010?
Carlos Slim Helú: I don’t have the precise amount for 2010. As I said, we prepare the programs and the commit ourselves until their fulfillment. In certain cases, when the project covers several years, as is the case with the Digital University, we do not limit ourselves to a budget, we stretch it and we go as far as it’s physically possible.
Question: Do you have an estimate for 2010 so we may have an idea?
Carlos Slim Helú: We have stated it several times and it covers all operations. It includes the museum, the Basilica of Guadalupe, the Plaza Mariana and about 119 thousand out of hospital surgeries. I believe that, individually, the most important of these projects were the museum and the Plaza Mariana, as well as the agreement with WWF, which amounts to about 150 million dollars. We signed an agreement with the World Institute for 65 million dollars, and contributed 500 million to the Health Institute. The Mesoamerican Initiative amounted to 100 million, together with the government of Spain and the Bill and Melinda Gates Foundation.
Question: In a country like Mexico, and in Latin America in general, there is a big gap between the rich and the poor. What is the responsibility of businessmen in trying to improve this situation?
Carlos Slim Helú: As I have stated several times, the social responsibility of entrepreneurs goes beyond investing, creating employment and paying taxes. It goes beyond that. There is a wide diversity of entrepreneurs and each one may do what he/she considers best. As in the United States, many used to bequeath their foundations to the public at the moment of their death, but not while still living. Some foundations like the Getty Museum were created exclusively for cultural purposes, others for education, for universities, etc. Others may donate during their lifetime; others commit their fortunes for a good cause after their death. There are those in the United States, such as Warren Buffet, who are bequeathing a specific amount each year, which is also fine. They can do as they wish. However, let me insist, entrepreneurs have the necessary knowledge, the training and the experience, as well as the capacity to solve social problems. They can do this in the same manner as we solve managerial problems. We handle resources, we have to solve constant problems; and there is innovation, an enterprise needs innovation, competition and imagination. We analyze the most important international references in order to find solutions. There are many parameters and variables involved. Many of these are applicable to poverty, underdevelopment and social problems.
For example, at present, mining is a sector with a very low socio-economic level. We can try to create economic activity and employment, perhaps stimulating new business ventures and if that is not possible, then we can organize ourselves to have an impact in the area. These are the type of actions the government is not capable of doing. Investments must be undertaken because they are necessary, and in a case like this there may be a possibility that a non-profit foundation may be interested. When a mining company goes to a particular location to exploit existing minerals, it must render more than the money it invests and the employment it generates in that area. It is a great commitment. In addition, as a mid-term advantage, miners should be trained, people should learn about mining exploration, welding, mechanics, vehicle driving, etc. The company may participate as well in non-profit training programs both locally and in nearby places. This will also benefit the company, as it will end up with well-prepared employees. Instead of only training personnel within the company, it should offer training in the surrounding area too. What is the purpose of this? If the company expands it already has the needed personnel; and if the company starts a mining project in a new location, it may transfer some of these people to the new mine.
In short, it is important that the entrepreneur does not wait until he dies to get things done. He has to do them while he is still alive, and the sooner the better.
The foundation is 20 years old, but the earlier one starts and the more intense one works, the better. We cannot just wait to give some money away once we die. Secondly, one should not wait to sell his/her business or retire in order to contribute to the common welfare. The investor may sell his/her shares since he/she is not developing a company but rather investing in companies in the market, companies that belong to others. What he/she has is money invested in shares. There is a wide range of possibilities.
It is advisable to begin early while one is still alive and active. The entrepreneur can own a company and also finance a foundation, either jointly or separately.
Question: Some time ago, when you were in Forbes’ list as the third richest man in the world, you were asked if you gave any importance to this and you said that you did not; that if you cared about anything, it was your family. Today you are the richest man in the world according to Forbes. Are you still of the same opinion or does it mean anything to you now?
Carlos Slim Helú: No, in my opinion what we have is companies and it is in my interest that they run well, that they continue to invest and maintain themselves at the forefront with their investments. I want them to keep working correctly and generate value. I have always said that family life does not confront, but rather complements, professional and business life in general.
Question: Why has the museum taken so long?
Carlos Slim Helú: Oh heavens! Does it seem long to you? Have you seen how difficult the project is? First we had to dig five levels of volcanic rock for a year; one million cubic meters were extracted. Then we built the foundations, with 1.50 mts slabs, then the structure, etc. After the base level was finished, the structure of the museum was built in one year. Most of the manufacture and installation was made with Mexican materials, except some steel.
The project, the calculations and the construction of the museum were all done in Mexico. The structure was finished in September, then the interiors and exteriors, all of which were very complicated. The structure is beautiful, isn’t it? We first finished the structure and then the substructure or superstructure to receive the façade, both the interior and the exterior one. We had some delays because of the floods that took place in Monterrey. The company was located in Monterrey. We had delays and the process turned complicated. After that we proceeded with galvanization and with two layers of waterproof coating. Then we installed the bolts that hold 17 thousand hexagons of different sizes. The interiors took a long time, because we had to try various materials, first we fire-tested one material using blowtorches, then we found another material that lasted three times longer, so we replaced because it resisted the blowtorches for about one hour and a half. There are three interior layers plus the paint. We are planning to open it on the 28th of February, and it should open to the public in March. There were also other issues such as the work of the museographers, the interior lighting and air conditioning, plus the office spaces and warehouses. My intention was to open it in December.
Question: You mentioned DISH. We know you are responsible of the billing of that company. I would like to ask you whether you are interested in this company or not. Would you reconsider buying a share of it?
Carlos Slim Helú: We are responsible of the billing, the collecting and also the sales of DISH, but in a partial way. We cannot do all, because the company works with a coupon program. We are responsible for about 60% of billing and collecting. They take care of the remaining 40% in a different way, with coupons and cards, etc. Supposedly, we should be able to do it all, since we were issued a permit to buy CABLEVISION, but we are not interested in something like for the moment. More than anything else, we are waiting and taking steps to gain access to Triple Play. In the meantime we are focusing in developing Double Play packages for our clients, as well as in accelerating our investments in fiber and cable to get even closer to homes.
Thank you very much.
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