INTERVIEW Considered Us to Be Temporary Managers of Our Businesses

INTERVIEW considered us to be temporary managers of our businesses. We work to reinvest because the experience of the businessman is so important InterviewVIEW to solving social problems. In 1986, we created a foundation to focus on our philanthropic activities. It’s clear we can and should do many things. I don’t see this as INTER A Conversation an option; I see it as a social responsibility. With so much need, how do you de- cide which areas to support? Our focus is on health and education. Many years ago, when we were analyzing what with Carlos Slim we should do, we decided to begin with the nutrition and health of a pregnant mother. We looked to reduce mother and child mortality by making sure the baby is born in the best pos- sible conditions. There are many lifelong issues for the child that can be prevented by having a FOUNDATION BRIEF The Carlos Slim Foundation But in Mexico, foreign direct investments proper birth experience. (www.carlosslim.com) was created in 1986. in recent years have been very active, so the po- Our focus is also on the nutrition of the With strong social and high impact programs tential for more in the near future is very strong. baby in the fi rst two years of life, which is an focused on the most vulnerable population, the For your businesses, do you see growth important time in the child’s development. foundation has directly benefi tted more than coming mainly from within Mexico or from I spoke with Mexico’s President at the 29.7 million people. The foundation’s focus is international markets? time, Ernesto Zedillo, informing him that we on the following areas: education, health, nutri- We have strong growth in Mexico. In the had already worked with a public children’s tion, social justice, culture, human development, mining business, there are many Canadian com- hospital to create nutrition programs in two cit- aid in natural disasters, economic development, panies and national Mexican companies in- ies. These programs increased the baby’s birth Carlos Slim Helú during the Carlos Slim Awards in Health ceremony Carlos Slim Helú protection and conservation of the environment, volved. We have to invest around $70 or $80 weight by 15 percent. President Zedillo en- and aid to Latin America and sister nations, as billion a year in infrastructure and that will cre- dorsed the program in 1996 and it was taken on people in the skill sets that will be required for rooms are contaminated with dangerous gases EDITORS’ NOTE Carlos Slim Helú studied Civil well as to public and private institutions. ate a lot of opportunities. by the government as public policy. these jobs in fi elds such as information technol- and contaminants. We support a program called Engineering at the National Autonomous There is also potential growth in housing In terms of education, we need to move from ogy, tourism, health care, and education. Some of Healthy Home to teach people how to build better University of Mexico School of Engineering, where In light of economic challenges, is this and real estate. Mexico is a place with millions traditional methods to education of the 21st cen- these programs can also be taken to other coun- stoves that vent gases out of the house. he also taught Algebra and Linear Programming a time of opportunity or is your outlook of people in many areas that have great poten- tury using today’s technology. We’re working with tries in Latin America and elsewhere. We also conduct something called Outdoor while studying for his degree. In 1965, at 25 more reserved? tial for growth and development. the Khan Academy to fi gure out how to give free In areas like education, we can have a na- Surgery, where we provide surgery in rural areas years of age, he began to build the foundations We have a long-term vision, resources, and Is the government working closely education to everyone in Mexico, no matter where tional impact. A few years ago, we developed that do not have access to traditional hospitals. We of Grupo Carso. Since the 1980s, Slim has been a a healthy company so there are always oppor- with the private sector to encourage pos- they live. Khan Academy offers many programs digital libraries. Instead of lending books, we work with the Mexican Academy of Surgery; they noted businessman in various industrial, real es- tunities to be found in diffi cult times. itive economic activity? that we are looking to translate into Spanish. We lend laptops; instead of going to the library to give free time and teach doctors in rural areas and, tate, and commercial fi elds. He currently serves as With problems in many developed coun- Yes. Mexico has instituted a new law re- are also working to create new programs not only read, patrons go to navigate. We have locations with the health center of the government, we mo- Chairman of the board of directors of Impulsora tries now, the private sector will seek out pos- garding public/private partnerships that has for academic purposes but also for labor retrain- with high-speed Internet access and laptops bilize to make it happen. The program currently del Desarrollo y el Empleo en América Latina, S.A. sibilities for investment. been very successful. Many investments have ing. We are focused on the jobs that will be in and PCs that we lend out, which people can take provides more than 150,000 surgeries a year in de C.V. (IDEAL); Chairman of Fundación Telmex, In terms of what is going on in Europe and gone in this direction over the past 10 years demand over the next 10 years and on educating home for 15 days at a time. Mexico. We also support this program in Peru with A.C.; Chairman of Fundación Carlos Slim Helú, the U.S., with big fi scal defi cits and so much and, each time, with more intensity. In the fu- We also have digital the Clinton Global Initiative and have vowed to do A.C.; Chairman of the Executive Committee of unemployment and lack of economic activity, ture, there will be even more growth of this classrooms and through 50,000 surgeries there within three years; in the fi rst Consejo Consultivo de Restauración del Centro governments need to defer to private investors, type of investment. this work, we can give two years, we have completed more than 40,000. Histórico; and Chairman of Fundación del who can create the economic activity and jobs In all areas, public/private partnership is universal access to edu- We are always looking at programs that Centro Histórico, A.C. Slim continues to be ac- that countries need. the best way to use private investment for pub- cation and the Internet have national impact and do not duplicate ac- tive in business although his work is primarily Economic activity for the business commu- lic service. Mexico has a to many people. tivities that others are already undertaking. focused on education, health, and employment nity is signifi cant, especially with such low inter- In terms of these issues, what is the In health care, we We have an art museum, for instance, that in Mexico and Latin America through the foun- est rates. The private sector can create a lot of public sector role? healthy banking system, are trying to innovate. we make accessible at no charge to young peo- dations he chairs and companies in the infra- projects that have better returns. With very low- The only way the public sector can cor- During the last fi ve years ple and families of any income to enjoy. We structure arena. His three sons have taken over cost fi nancing and substantial resources in the rect a fi scal defi cit is by increasing revenues or of life, 80 percent of the have already had 1.2 million visitors there. the reins of his businesses. Slim has lectured at banking system, a long-term vision is needed decreasing expenses. healthy macroeconomics, total lifetime health care We don’t put any limitations on the pro- public and private institutions as well as at in- for economic activity in many countries. To increase revenues, you can increase cost of an individual is grams we support. Our approach is that all we ternational organizations such as the Economic Is there a good understanding of the taxes, which is tough for people because taxes expended. We need to can do, we will do. Commission for Latin America (ECLA). He was the opportunities for foreign investment in are already high and further increases crunch and a good labor pool – our fi nd new solutions, which We have another program called Help Me fi rst Chairman of the Latin American Committee Mexico? a society. we believe lie in genom- To Arrive. In rural schools, it takes many chil- of the board of directors of the New York Stock Many people focus on the BRICs without Part of the solution is also selling assets ics, so we are doing basic dren as much as two hours to get to school. Exchange. In December 2008, Slim was nomi- looking at the bigger picture. A country like and inviting the private sector to make the in- people have proven they research in this fi eld. By providing bicycles through this program, it nated a member of Research and Development Mexico has strong potential and we have seen vestments necessary to increase the economic Also, in schools, takes them only 20 minutes. Corporate Executive Board. a lot of national investment. activity of the country. can work hard and there are many children While you’re making major impact, it Mexico has a healthy banking system, In this technological society with its free- who can’t see the black- takes time to see results. Is it tough to be COMPANY BRIEF Grupo Carso (www. gcarso.com.mx) healthy macroeconomics, and a good labor pool – dom, diversity, and morality, the social society board and yet it is often patient? has operations in heavy industry, services, re- our people have proven they can work hard and is most important. There are many things to be effi ciently in all not recognized. We have a We move fast, but we are only at around 25 tail, and consumer goods through CICSA, effi ciently in all sectors of the economy. done, not only by entrepreneurs but also by program that offers glasses percent of what we can do – so we can do more. Condumex, Hoteles Calinda (now OSTAR So we have all the desired conditions to investors. They will do it better and more effec- called “ver para aprender” – Those of us in business have the responsi- Grupo Hotelero), Nacobre, Sears, Sanborns, and be a very attractive place for investments, both tively than governments that often spend to the sectors of the see to learn. bility that comes with great wealth. We should Promotora Musical. Grupo Carso currently en- national and international. extreme and are not solvent. Another issue we look to create jobs and pay taxes. Eliminating compasses the following holding companies: When you look at countries that need to You are known as one of the most phil- economy. focus on is contamination poverty is an economic need as well as a moral América Móvil, Grupo Financiero Inbursa, grow significantly, they require investments anthropic people in the world. Where did in rural areas – families one. We need to help people out of poverty, Impulsora del Desarrollo y el Empleo en América of 25 to 30 percent of gross national product. that focus stem from? cook with open fl ames train and educate them and put them in the Latina (IDEAL), Inmuebles Cars, and Minera Often, the foreign investments are not more It was due to my father’s thinking that we using wood in the same labor market, and they will improve the econ- Frisco. than 10 to 15 percent. don’t take anything when we pass away. He space they sleep in, so omy and society. 10 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2012 LEADERS MAGAZINE, INC. VOLUME 35, NUMBER 4 considered us to be temporary managers of our businesses. We work to reinvest because the experience of the businessman is so important to solving social problems. In 1986, we created a foundation to focus on our philanthropic activities. It’s clear we can and should do many things. I don’t see this as an option; I see it as a social responsibility. With so much need, how do you de- cide which areas to support? Our focus is on health and education. Many years ago, when we were analyzing what we should do, we decided to begin with the nutrition and health of a pregnant mother. We looked to reduce mother and child mortality by making sure the baby is born in the best pos- sible conditions. There are many lifelong issues for the child that can be prevented by having a proper birth experience. Our focus is also on the nutrition of the baby in the fi rst two years of life, which is an important time in the child’s development. I spoke with Mexico’s President at the time, Ernesto Zedillo, informing him that we had already worked with a public children’s hospital to create nutrition programs in two cit- ies. These programs increased the baby’s birth Carlos Slim Helú during the Carlos Slim Awards in Health ceremony weight by 15 percent. President Zedillo en- dorsed the program in 1996 and it was taken on people in the skill sets that will be required for rooms are contaminated with dangerous gases by the government as public policy. these jobs in fi elds such as information technol- and contaminants. We support a program called In terms of education, we need to move from ogy, tourism, health care, and education. Some of Healthy Home to teach people how to build better traditional methods to education of the 21st cen- these programs can also be taken to other coun- stoves that vent gases out of the house. tury using today’s technology. We’re working with tries in Latin America and elsewhere. We also conduct something called Outdoor the Khan Academy to fi gure out how to give free In areas like education, we can have a na- Surgery, where we provide surgery in rural areas education to everyone in Mexico, no matter where tional impact. A few years ago, we developed that do not have access to traditional hospitals. We they live. Khan Academy offers many programs digital libraries. Instead of lending books, we work with the Mexican Academy of Surgery; they that we are looking to translate into Spanish. We lend laptops; instead of going to the library to give free time and teach doctors in rural areas and, are also working to create new programs not only read, patrons go to navigate. We have locations with the health center of the government, we mo- for academic purposes but also for labor retrain- with high-speed Internet access and laptops bilize to make it happen. The program currently ing. We are focused on the jobs that will be in and PCs that we lend out, which people can take provides more than 150,000 surgeries a year in demand over the next 10 years and on educating home for 15 days at a time. Mexico. We also support this program in Peru with We also have digital the Clinton Global Initiative and have vowed to do classrooms and through 50,000 surgeries there within three years; in the fi rst this work, we can give two years, we have completed more than 40,000. universal access to edu- We are always looking at programs that cation and the Internet have national impact and do not duplicate ac- Mexico has a to many people. tivities that others are already undertaking. In health care, we We have an art museum, for instance, that healthy banking system, are trying to innovate. we make accessible at no charge to young peo- During the last fi ve years ple and families of any income to enjoy. We of life, 80 percent of the have already had 1.2 million visitors there. healthy macroeconomics, total lifetime health care We don’t put any limitations on the pro- cost of an individual is grams we support. Our approach is that all we expended. We need to can do, we will do. and a good labor pool – our fi nd new solutions, which We have another program called Help Me we believe lie in genom- To Arrive. In rural schools, it takes many chil- ics, so we are doing basic dren as much as two hours to get to school. people have proven they research in this fi eld. By providing bicycles through this program, it Also, in schools, takes them only 20 minutes. can work hard and there are many children While you’re making major impact, it who can’t see the black- takes time to see results. Is it tough to be board and yet it is often patient? effi ciently in all not recognized. We have a We move fast, but we are only at around 25 program that offers glasses percent of what we can do – so we can do more. called “ver para aprender” – Those of us in business have the responsi- sectors of the see to learn. bility that comes with great wealth. We should Another issue we look to create jobs and pay taxes. Eliminating economy. focus on is contamination poverty is an economic need as well as a moral in rural areas – families one. We need to help people out of poverty, cook with open fl ames train and educate them and put them in the using wood in the same labor market, and they will improve the econ- space they sleep in, so omy and society. VOLUME 35, NUMBER 4 POSTED WITH PERMISSION. COPYRIGHT © 2012 LEADERS MAGAZINE, INC. LEADERS 11 We must recognize Many years ago, I that the welfare of oth- recall a politician estimat- ers is good for everyone. ing that 20 percent of the Over the past 15 years, people in jail were inno- in addition to my focus cent. That is a big problem on philanthropy, I have for society. While these also worked on activities people are in jail, they are that create jobs. basically attending a “uni- With all of your Economic activity is versity” of crime and in the successes, did you ex- end, not only is it expen- perience tough times sive for the state to keep as well? greater with globalization and we are them there, but when they Actually, I expected get out, they know more it to get easier over time just beginning to encounter worldwide about criminality and are because with growth you caught up in a bad cycle. have more alternatives in- So we provide bail cluding private participa- opportunities that are emerging. bonds to the government tion. Economic activity is to get these unfortunate greater with globalization people, who are often and we are just begin- There is no limit to our indigenous citizens, ning to encounter world- out of jail. wide opportunities that what is coming. The difference be- are emerging. There is no tween the U.S. and Mexico limit to what is coming. is that in Mexico, trials are What impact did held when the accused your father have on are jailed. In the U.S., you your life? are judged prior to being My father was a spe- sentenced to jail. cial person. He came to Our program takes Mexico in 1902 when he 8,000 people out of jail was only 14 years of age. each year. To get one of He worked very hard and was very successful. Do you refl ect on how much you have these people out of jail costs only $8 because He gave jobs to me and my two brothers so that achieved? of an agreement we made with a bail bond he could teach us. He opened a store mainly to My challenge in life is not to just build a company. There are conditions that need to train us on how to work. bigger business but also to help our country in be met: the crime charged must be non-violent Do you take interest in the recognition terms of development. and the accused must be a fi rst-time offender. you receive on various lists, like those for Additionally, the decision of the judge also re- wealthiest individuals? quires the accused to pay $500 to get out of jail. Not at all. In terms of wealth, one can have Is slowing down just not in your wealth because he owns a company that has a nature? big valuation or one can have wealth because of In my opinion, we are doing 25 percent his investments. There is a difference between of what we could do. Maybe when we get to being an investor and being an entrepreneur. doing 95 percent, I will slow down. But my An entrepreneur actively creates and an investor country is only at $10,000 per capita so we have passively invests. a lot of poor people and we have not created In all big companies, there are entrepre- the middle class that we need. A lot of people neurs and investors, and then there is the remain without education. CEO – these three comprise the business. In Technology has made things different to- small- and mid-sized businesses, the investor, day. When work was mainly of a physical na- the entrepreneur, and the CEO are often the ture, one would need to retire at 65. But with same person. technological developments, people can con- What we should do is manage our business tinue to work and utilize their knowledge and and create wealth. Beyond that, we should also experience without being limited by age. work on social problems. It’s important that our In my case, my work is to think through talents and experience are utilized in addressing problems and issues and fi nd solutions. social problems because we have the training to We are living in a changed world. Society work effectively with human and fi nancial capital now moves at the speed of the Internet and and to address complicated environments with technology can increase the speed with which different conditions. When we use our knowl- change can happen. edge and experience to work on social prob- When the economy declines, the big prob- lems, we can fi nd solutions. lem is that people don’t have jobs and lose I believe that philanthropy is about more Carlos Slim with LEADERS President, David Schner, just prior to hope. They can’t see how things will end up than writing a check. It is about giving your this September 22nd interview and they are unable to make any necessary time, knowledge, commitment, and dedication; changes. The things that governments do Mother Theresa gave her life for others – peo- are to reduce expenses and increase taxes; this ple like that are the real philanthropists. An example of how a local problem can slows economic activity. The business community should get in- be addressed is a program we have had for 18 If we had a longer term vision, the govern- volved, not just in terms of monetary donations years called Social Justice. We take people out ment would have created budget surpluses but with issue solutions. It’s about thinking of jail who are there principally because they’re when the economy was doing well so that through problems and giving your time and poor, not because of a crime they have com- it can spend and improve the economy when your talent to fi nding solutions. I don’t see it as mitted. If they receive a small amount of things are challenging. That’s the balance we a think tank, but rather like an action tank. money, they can get out of jail. need.• 12 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2012 LEADERS MAGAZINE, INC. VOLUME 35, NUMBER 4