On June 22, 2025, Jackson Schneider, one of the most influential figures in the South American business community, provided an in-depth analysis of the essential factors for attracting foreign investment and fostering business growth. In a lecture hosted by Ueno Bank and GV Multimedia Group, Schneider presented insights into the legal stability sought by investors, the utilization of comparative advantages by countries like Paraguay, and the strategic approaches companies should adopt for long-term growth. His insights are poised to become a crucial landmark for nations and businesses aiming for sustainable development beyond short-term economic growth.
The Core of Investment Attraction: Legal Stability of the Nation, Not the Government
Schneider identified "legal stability in the business environment" as the most critical factor in attracting foreign investment. He emphasized that this stability must stem from the robust system of the entire nation, not merely from the policies of the current government.
"When discussing foreign investment in Paraguay, the business environment is very important, and what investors seek is legal stability in the business environment. This stability doesn't just come from the government; it comes from the state. Therefore, even if the government changes, the rules of the game must remain the same, because investments are not made for the short term but for the long term. Sometimes investments can last much longer than one, two, three, or four governments. Therefore, the permanence and stability of the rules are very important."
Schneider clearly distinguished between the roles of the government and the nation, stressing that investment should be a national commitment that remains unshaken by changes in political power. While governments may change, the laws and institutions underpinning investment must maintain continuity through the consensus of all members of society. This can be interpreted as ensuring consistent application of regulations and predictability.
Investors inject substantial capital and formulate long-term business plans, making a stable system that is immune to rapid changes in the business environment due to political volatility their top priority. This legal stability provides predictability to investors, which is a key factor in reducing investment risk. In South Korea's case, while the "Foreign Investment Promotion Act" and other measures offer investment incentives to attract foreign capital, actual investors tend to place greater importance on a stable judicial system and a predictable regulatory environment.
Leveraging Paraguay's Comparative Advantage: High-Value Addition to Energy and Agro-Livestock
Schneider also pointed out that leveraging Paraguay's comparative advantages and adding value to them is another key aspect of attracting foreign investment. Comparative advantage refers to the ability of a country, company, or individual to produce specific goods or services at a lower opportunity cost than others.
"Paraguay, for example, has energy, renewable energy, energy at a very competitive price. What can be done using this energy to generate wealth and jobs in Paraguay?"
He cited Paraguay's abundant hydropower as an example, suggesting that it should be utilized to foster high-value-added industries. Cheap and abundant renewable energy can serve as a strong foundation for securing competitiveness in various sectors, including data centers, energy-intensive manufacturing, and eco-friendly industries.
He also mentioned Paraguay's representative comparative advantage industries: livestock and soybean production.
"How can we process soybeans here? How can we add value to the livestock products that are exported? I believe we can continue to create conditions that attract investment. This is important for investors."
This indicates that Paraguay needs a strategy to process raw materials domestically to increase their added value, rather than merely exporting them. If soybeans are processed into edible oil, protein supplements, or biofuels, or if livestock products are processed into high-quality meat products or leather goods, significantly greater economic effects can be expected. Such a high-value-added strategy can greatly contribute not only to increasing export revenue but also to the development of related industries and job creation. This proposes a direction for pursuing sustainable growth through the advancement of the industrial structure.
National Strategy: Industrial Development Through Selection and Concentration
Schneider emphasized that since a nation cannot support every sector, "choosing the areas you want to support" is crucial.
"It's impossible. Not just for Paraguay, but probably only two or three countries worldwide can do everything. The United States, China, and maybe a united Europe could, but we can't do everything. So, the first thing is to choose which areas you want to support, and then choose how far that support can reach."
He stressed the need for strategic selection and concentration at the national level to efficiently utilize limited resources and capabilities. Concentrated support for selected sectors can strengthen their competitiveness and ultimately drive the growth of the entire national economy. He added that this selection process should occur through open and transparent dialogue involving all members of society, not just government-led initiatives.
"Here, support policies must be designed, whether it's financial support, human resource training, human capital formation, partnerships, or promotion of domestic and international products and industries. But the first thing to do is to choose the areas you can support. In Paraguay's case, I'm not in a position to make choices for the people of Paraguay. But I want to say that it should be a dialogue involving all members of society: civil society organizations, government, individuals. It should not be a closed dialogue, but an open, transparent dialogue that includes all people who will truly experience this process. And decisions must be made correctly. They should not be decisions forced from top to bottom. People must be the owners of those decisions, and only then can it go perfectly."
This implies that when formulating policies to foster specific industries, decisions should not be unilateral government choices but based on the participation and consensus of various stakeholders, including industry, academia, and civil society. Such a process can increase policy acceptance and help formulate effective support measures that reflect the needs of the actual industrial landscape. Schneider emphasized that this process should be one where "people are the owners of the decisions" rather than "forced decisions," underscoring the importance of social consensus for successful policy implementation.
Three Key Pieces of Advice for Business Growth
Schneider offered three core pieces of advice for private companies regarding long-term growth and stabilization strategies.
Differentiate from Competitors: "To reach that point of growth, you need to identify very clearly what you can do differently, better, faster than your competitors." Companies must find their unique strengths and value propositions. This can be achieved through product or service innovation, efficient operating methods, or proprietary technology. Differentiation is essential for solidifying a company's position in the market and securing a sustainable competitive advantage.
Invest in Human Capital and Talent Management: "You have to be very clever in identifying the right people, training them, motivating them, and putting the right people in the right places. It's easy to say, but often not easy in practice." Schneider emphasized the importance of talent in business growth. Companies should select suitable talent, provide continuous education and training opportunities, and offer appropriate compensation and motivation for performance to enhance organizational commitment. Furthermore, strategic human resource management is needed to place individuals in the right positions to maximize their capabilities. This directly contributes to increasing a company's productivity and innovation capacity.
Build Strategic Partnerships: "Another way to expand your business is to have good partnerships, especially when entering new markets. This accelerates the process of knowing the market and often accelerates the process of dealing with the bureaucracy of the market." When seeking to enter new markets or expand operations, strategic partnerships are an effective way to reduce risk and increase the likelihood of success. Collaboration with partners who have a deep understanding of the local market can lower market entry barriers and facilitate adaptation to local regulations and culture. Through this, companies can save time and costs and efficiently seize new opportunities.
The Importance of Geopolitical Understanding
At the end of his lecture, Schneider stressed the importance for companies to understand geopolitical trends.
"You need to understand the geopolitical game and its impact on the economy, because that impact is very decisive on other things."
The modern economy is significantly influenced by various geopolitical factors, including international relations, political conflicts, trade wars, and supply chain disruptions. Companies must predict how these geopolitical changes will affect their business environment and formulate proactive response strategies. For example, political instability in a particular region might prompt consideration of relocating production facilities, while changes in trade agreements could create new market opportunities or alter existing competitive dynamics. Geopolitical insight is an essential capability for companies to manage risks and seize new opportunities in an uncertain global environment.
Jackson Schneider's remarks demonstrate that attracting foreign investment and achieving business growth are not just about chasing economic indicators. Instead, they become possible when firmly grounded in legal and institutional stability, organically combined with strategic choices and focus by nations and businesses, and investments in human resources and partnerships. In particular, his emphasis is on establishing fundamental systems for predictable and sustainable development rather than short-term results. This offers deep insight to all nations and businesses seeking stable growth in today's increasingly uncertain global economy.
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