24 de June 2014
Bogota moves up two spots to take 6th place among the best cities to do business in Latin America
- Bogota climbs two places in the 2014 Ranking of Best Cities for Doing Business in Latin America, published annually by AméricaEconomía, and now stands in 6th place.
- This year, Bogota has managed to surpass both Buenos Aires and Rio de Janeiro. Moreover, it is the only Colombian city ranked in the top 10.
- The rise is mainly due to improvements in physical and digital connectivity indicators, followed by the availability of a skilled workforce and a general favorable perception of the city.
The city now holds the 6th spot, having surpassed Buenos Aires and Rio de Janeiro, both well-recognized cities in the Latin American context, which have moved down to 7th and 8th place, respectively.
10 best cities for doing business in Latin America
* Miami is included due to its business and trade relations with the region.
Source: AméricaEconomía intelligence, 2014.
Bogota’s improvement in the rankings is mainly explained by the dynamics of its infrastructure and connectivity projects, such as Terminal 2 of the El Dorado Airport, advances in the Bogota Metro’s structure, Metrocables, and the Av Boyacá highway.
The capital has also improved its indicators of quality of human resources available for business and innovation, and a general positive perception exists towards the key components of quality of life.
As in previous years, Bogota continues to lead among the Colombian cities. It is followed by Medellin, which now ranks 17th, Cartagena in 24th place, Cali in 29th place and Barranquilla in 31st place.
Juan Gabriel Pérez, CEO of Invest in Bogota, notes: “This result confirms the excellent times being had by the city and its international positioning for business, as evidenced by the fact that Bogota receives most of the foreign investment in new projects coming into the country, excluding oil investment.”
Pérez adds, “Once again, Bogota confirms its leadership in the region and in the country as a hub for business and a preferred destination for foreign investment, thanks to the availability of qualified human resources that allow for meeting the needs of almost any transaction or business in the city, with great opportunities available in sectors, such as infrastructure, green mobility, and technology and, among others, its favorable business environment and quality of life.”
The ranking utilized by AméricaEconomía is founded on the methodology and calculations of the Urban Competitiveness Index (UCI), which analyzes quantitative and perceptual variables that companies and executives have in mind when making a decision to install their operations in a city. Among the many variables evaluated are as follows: macroeconomic and socio-political structure of the relevant country, dynamics and strength of the local economy, business services, quality of life, safety, physical and digital connectivity, intellectual capital, and environmental sustainability
The UCI is a complex tool that enables cities to be ranked from a higher to lower capacity in terms of business potential. The UCI consists of eight dimensions, each of which concentrates a certain number of variables that combine to allow synthesis of specific attribute arenas that are relevant to an urban area’s attractiveness for business. These dimensions are as follows:
Social and political framework (15%):
This factor includes indicators and variables of political governance, institutions, security, social development, and legal certainty.
Economic framework and dynamism (25%):
This assembles the indicators and variables of wealth creation, attracting investment, economic stability and the characterization of goods, labor, and financial markets.
Business services (10%):
This sets forth the indicators and variables of costs of installation and business regimes, such as quality and access to information (telephony and Internet) and banking, and the institutional quality of local governments.
Executive services (10%):
This provides indicators and variables of cost and quality of life, including access to banking services for individuals and the quality of basic services, such as education for young children, hospitals, hotels, and restaurant services.
Physical infrastructure and connectivity (10%):
This incorporates variables and indicators regarding the magnitude and quality of land, sea, and air mobility of people and cargo, both domestically and when leaving the country, as well as complex indicators for investment and the development of public and private infrastructure.
Human capital (10%):
This element uses accreditation and quantification indicators and variables of higher educational offerings to measure the availability of a skilled local workforce, with an emphasis on university education related to business and innovation capital.
Environmental sustainability (5%):
This incorporates variables and dimensions that account, first, for the quality of the natural resources that determine a city’s health, such as air pollution. Second, it also considers the level of clean urban public transport. Third, it estimates the city’s impact on the global environment, calculating the sense of ecological responsibility expressed by the metropolis.
Brand power (15%):
This is created based on the Survey of Business and Quality of Life in Latin American Cities, conducted in July 2013 among AméricaEconomía readers. Its results are aligned with a perception indicator based on analysis of relevant news items in the 2012–2013 period developed by AméricaEconomía Intelligence.