A rebroadcast of the opening session is available above. Nani’s remarks begin at the 46-minute mark. You can advance to that time by hitting the play button and then clicking the time bar running along the bottom of the video screen.

“One that is difficult to put in place as it is a long-term effort is education,” Nani stressed to the business and government leaders gathered in Cartagena, Colombia. “I travel to many countries and see many places. I can tell you that the places that flourish are the ones that have the two E’s: The ‘E’ of Energy – and I’m not talking about oil or gas – I’m talking about the ability of lighting bulbs. And Education. You see the countries that have energy but no education go nowhere. And countries that have education but no energy don’t go anywhere. The countries you see prospering are the ones that have both of these, heavily invested.”

Praising the major infrastructure projects currently underway in the region – including Colombia’s current roadway construction projects, Nani said, “We see great investments in infrastructure…. I think there are still big needs of power, big needs of water, for electricity, big needs for roads, for airports. These need to happen in order to bring these economies to the level where they belong and where they can prosper.”

Nani observed that between 1981 and 2007, the world experienced a phenomenal type of growth that had not been seen before, driven by the introduction of new technologies and the phenomenon of globalization. With hundreds of millions of people entering a new way of life in places such as China and India, the need for commodities exploded and Latin America was one of the regions that benefited as immense wealth was created in the process.

But now is the time, he said, to diversify. Pointing to the Middle East as an example, he noted how the economies there are rapidly diversifying away from oil and into a range of other industries. Nani also underscored the need to ensure that old threats do not emerge, such as those of political and democratic instability, he said. “Another mistake is the return to protectionism, a return to high import duties, and a return to a taxation system that does not conform to taxation systems in other parts of the world,” he said. “Tell me an economy in history that has prospered with big import duties or taxation.”

To a round of applause, Nani said “one other important point is the absolute elimination of corruption. Corruption is always a threat to development. Corruption leads to uncompetitive environments…. I am appealing to governments to really fight this enemy. It is the enemy for economic development. Following up on corruption is the concept of governance: clean, well-constructed illuminated governments is very important.”

Learn more in these GE Reports stories:
* “Taking a look at GE in Brazil during WEF Latin America”
* “Putting flare gas on the firing line at the WEF in Davos”
* “Switching smart grids from ‘demo’ to ‘deploy’ at WEF”
* “Brazil’s turbines sweetly hum with sugar-based ethanol”
* “The sugar-land express: Brazil orders 50 locomotives”
* “Brazil’s new Azul airline inks $1B services deal with GE”
* “GE wins $250 million offshore drilling contract in Brazil”
* “Brazil boosts clean gas in the Amazon; wind in the East”

Rail good news! The Model C25 six-axle locomotives were designed specifically to accommodate Nigeria’s weight per axle and clearance characteristics. Locomotives similar to the C25 are already successfully hauling freight in South Africa. Approximately 17,000 GE locomotives are in use in more than 50 countries around the world.

The new GE fleet will not only help Nigeria meet its rail ambitions — they mark another global jobs collaboration across GE. Just as we reported in our recent “sugarland express” story about ethanol giant Cosan ordering 50 locomotives for its Brazilian operations, the engines are manufactured in our Grove City, Pennsylvania plant while the locomotives are built by GE’s facility in Brazil. The South America plant has built GE diesel electric locomotives, including the C Series being used by Nigeria, since 1967.

Daniel Weinreich

Lorenzo Simonelli, President and CEO of GE Transportation, said “the arrival of the first locomotives represents an important step in GE Transportation’s entry into the Nigerian market place.” And as GE’s Daniel Weinreich explains in the audio clip below, the new technology being introduced into the aging Nigerian fleet will not only mean improved hauling capabilities on both freight and passenger lines, but increased fuel efficiency, too.

GE has a long-standing relationship with Nigeria in other sectors such as energy, aviation, and oil & gas, with over 170 employees in country. In 2008, GE’s revenues in Africa were $3.5 billion, an increase of almost 40 percent over 2007. For example, GE Aviation has sold about 95 engines with a list value of $1 billion in Nigeria since 2006. And, of the more than 200 GE gas turbines currently installed in Africa, Nigeria is home to more than half.

A fast train to Africa: The C25 Locomotive is seen here in Brazil with a delegation from Nigeria before shipping. From left to right: Bature Gafai, Director of Land Transport; Bernard Udoh, Chairman House Committee of Land Transport; Kayode Garrick, Nigerian Ambassador to Brazil; Isa Ibrahim Bio, Minister of Transport; Senator Yakubu Lado, Chairman of the Senate Committee on Land Transport; Mohammed Mijindadi, GE Transportation Commercial Leader for West Africa; and Umar Sarkinfada, Minister of the Nigerian Embassy in Brazil.

* Read today’s announcement
* Learn more about GE’s other operations in Nigeria
* Read “GE and Nigeria ink landmark infrastructure agreement” on GE Reports
* Read “Healthcare in Africa: A closer look at Ghana” on GE Reports
* Read “The sugar-land express: Brazil orders 50 locomotives” on GE Reports
* Read more Transportation stories on GE Reports

Thinking big: The 2.5xl turbine has a rotor diameter of 100 meters — or about the length of a football field. By comparison, its widely used 1.5-megawatt cousin has a rotor diameter of 70 to 77 meters. The 2.5xl turbine isn’t currently sold in the U.S., but GE will begin offering it to North American customers next year — with those units to be assembled in Pensacola, Fla.

The European Union currently has a goal of cutting greenhouse gas emissions 20 percent while increasing renewable energy capacity 20 percent by the year 2020. To reach this objective, the EU has set national targets for each EU member state, based on the per capita GDP of each country. Conversely, in the U.S., current proposals before Congress call for just 3 to 6 percent of total U.S. electricity generation to be produced by renewables by 2012 — which is essentially equal to or below the status quo.

The first phase of the project –- Fantanele — and the second phase — Cogealac — are both located in Romania, which at the end of 2008 had only 10 megawatts of wind generation equipment installed, according to the European Wind Energy Association. But the new wind farm will increase that dramatically. When phase two is completed in 2011, the country will have a total capacity of 600 megawatts of wind power.

As Reuters says in its story on the deal, “The planned two-stage wind farm will be around twice the size of the next biggest onshore wind farm in Europe and marks one of the largest recent foreign investments in European Union newcomer Romania.” One of the key reasons that the new wind farm is located in Romania is due to the country’s new pro-renewables legislation. As Reuters notes, the government is “eager for renewable power plants to bring them closer to EU goals while at the same time replacing outdated communist-era energy infrastructure.”

The 2.5xl wind turbine represents GE’s most advanced wind turbine technology in terms of efficiency, reliability and grid connection capabilities. It is designed to yield the highest annual energy production in its class and builds upon the success of GE’s 1.5-megawatt wind turbine, the world’s most widely deployed wind turbine with more than 12,000 now installed.

Nearly 200 of GE’s 2.5-megawatt wind turbines have been installed in nine countries and have compiled more than one million operating hours. Most of GE’s 2.5xl wind turbines for European projects are manufactured at GE Energy’s wind turbine facility in Salzbergen, Germany, which recently was expanded to help meet Europe’s growing demand for wind turbines.

* Read today’s announcement
* Learn about efforts to strengthen Renewable Electricity Standards in the U.S.
* See how a wind turbine blade is made in our Blade Runner series
* Read “GE’s giant wind turbines set to debut in Sweden”
* Read about the 2.5xl turbines coming soon to the U.S.
* See the technical specs of the 2.5MW turbine

Ideas are flowing: Located on the National University of Singapore campus, the center will initially house 30 GE scientists and engineers working closely with NUS researchers.

The new center will develop and test technology in areas such as desalination, water reuse, the generation of ultra-pure water for the semiconductor industry, chemical analysis of water and wastewater, and power generation.

Energy and water are both facing the same challenges: demand outstripping sustainable supply. An estimated six to 20 percent of an average city’s energy demand is used to produce, treat and transport water, while 15 percent of freshwater worldwide is used for industrial purposes. But as the industrial sector grows, so will demand for power and water.

Turning on the taps: Among those touring the new facility at the launch were, from left: Gee Paw Tan, Chairman of the Public Utilities Board of Singapore, Dr. Tony Tan, Chairman of the National Research Foundation of Singapore, and Heiner Markhoff, CEO and president of GE Water.

Singapore, which once relied on its neighbor Malaysia for treated water, became an early champion for greater water supply independence through the installation of industrial and municipal water treatment and recycling systems. Today, the country meets more than 60 percent of its water needs from local water catchment, water reclamation and seawater desalination.

“Power and water are interdependent; water is needed to produce energy and energy is needed for water treatment,” said Heiner Markhoff, president and CEO of GE Water. “At GE, we have developed advanced technologies that can treat any source water, or wastewater for that matter, to the quality required for power generation and many other industrial purposes.”

Meanwhile, Saudi Arabia also has water news flowing today, with GE Water, a business unit of GE Energy, opening the GE Saudi Water & Process Technology Center in Dammam. The nearly $10 million facility incorporates a blending plant for water treatment chemicals and offers advanced water, water reuse, wastewater and process solutions to local and regional customers. It is the second GE Water facility in the Gulf, following a recently opened manufacturing facility and office complex in Dubai, UAE. The new center is a joint venture between GE and Al Tamimi Group, a leading Saudi Arabian engineering and construction firm with which GE has had a relationship since 1957.

GE’s expanding Middle East partnership: At the opening of the GE Saudi Technology Water Center, from left, were: Glen Messina, CEO of the Chemicals & Monitoring Solutions business for GE Water and Tariq Ali Al Tamimi, President, Tamimi Group.

* Read today’s Singapore announcement
* Read the university’s coverage of the event
* Download the speech delivered at the Singapore launch by the NUS president
* Download the speech given by GE’s Heiner Markhoff in Singapore
* Learn more about the new Singapore research center
* Learn more about the Saudi Arabia facility

On the move: Based on cell phone technology, the device weighs under seven pounds, can go anywhere, and saves space by relying on texting rather than typing on a full keyboard.

The MAC 800 was originally developed in China, for China in 2008. But as BusinessWeek writes in its new story, the “machine will be pitched to a new set of medical professionals — primary-care doctors, rural clinics, and visiting nurses — who need a device they can easily tote or simply can’t afford the pricier models.”

John Rice, CEO of GE’s Technology Infrastructure group, tells the magazine: “Often, the trap is thinking that innovation is about making the next iPod or BlackBerry. But maybe it’s a simpler, lower-cost version of those. The innovation in all of our businesses now is bringing costs down.”

Read BusinessWeek’s story “Innovation Trickles in a New Direction” and watch their video.

Watch a video of GE’s Mike Barber, GE Healthcare’s chief technology officer.


Learn more about GE’s globalization strategy from Vijay Govindarajan, Professor at the Tuck School at Dartmouth and Chief Innovation Consultant at GE.

Learn more about GE’s MAC 800.

Today, more than half of GE’s revenues come from outside the United States. The company’s more than 300,000 employees work in 160 counties. And GE’s globalization efforts have helped cement its reputation as one of the world’s most successful and innovative companies. But the rise of emerging markets, such as India and China, mark a new phase of globalization, and, to date, most multinational companies have targeted only the top of the pyramid in these markets — the wealthiest 10%. The real potential lies in unlocking the other 90%. That is easier said than done.

Globe-trotting: GE’s globalization playbook is being redefined as dynamic emerging markets such as China and India create vast new opportunities.

Emerging markets are the new mass markets of the world. They now generate half of global GDP and over 40 percent of world exports. Yet, the customers in these new mass markets are fundamentally different from those in developed markets. For example, the per capita income in the U.S. is $44,000 versus $1,000 in India. Emerging markets are a paradox: they are mega markets with micro customers.

So, just how do companies such as GE unlock that 90 percent of the market in these countries? Adapting global products created for the US customer in India, for example, simply will not work to capture the full opportunity in India.

Within reach: Professor Vijay Govindarajan, GE’s chief innovation consultant, is working with management teams in GE Healthcare and GE Energy to roll out new approaches to globalization challenges.

In GE’s first phase of globalization, the company achieved global scope by identifying existing products with global potential and taking them into markets throughout the world. In the second phase, GE globalized its resource base — for example, by establishing centers of excellence in R&D outside the United States. In the third, GE began to adapt global products to local needs — a phenomenon labeled “Glocalization.”

In a world where markets were broadly similar, these approaches to globalization made sense. A consumer in Japan wasn’t hugely different from a consumer in the US or Western Europe. This made selling them global products, with suitable local adaptation, both viable and attractive. But the world is changing.

GE is meeting this challenge with an initiative we call CSL, which stands for “Connected, Scalable, Localization.” At the heart of the CSL approach are three simple principles: first, it recognizes that GE’s competitive advantage resides in connecting the sum of its parts — by leveraging its technological and manufacturing excellence. That’s the “connected” part of the equation. Second, it requires developing products in and for emerging markets as a vital way to reach new customers. That’s being “localized.” Finally, it identifies potential opportunities to take those locally innovated products to other similar emerging markets as well as to markets in the developed world. That’s what it means to be “scalable.”

This Friday, GEreports.com will bring you an example of this initiative in action — a portable electrocardiogram called the MAC 800 that was developed in one emerging market and is now seizing opportunities in others.

Breakthrough crew: GE scientists in India, New York, Germany and China are at the cutting edge of innovation in the areas of wind and solar power, gas turbines, locomotives, aircraft engines and oil and gas production.

Over the past seven years, GE’s annual research and development expenditures for projects in areas such as power generation, renewable energy, biosciences and healthcare have nearly doubled from $2.3 billion to $4.3 billion. As part of GE’s ecomagination initiative, the company is doubling its level of investment in clean technologies from $700 million in 2005 to more than $1.5 billion by 2010. And since 2001, GE has made capital investments totaling $330 million to expand its four global research centers — and grown employment at out Niskayuna, NY, facility 15 percent in the same period.

Patents pending: This new Bangalore, India facility will help GE maintain its technology leadership. GE’s researchers filed more than 2,500 patents in 2008 alone.

“The engineers and researchers here are part of a network of 30,000 technologists across GE who work to redefine what’s possible,” Mark Little, Senior Vice President and Director of GE Global Research said at the Bangalore opening. “Our mission today is the same as it was when Thomas Edison founded GE. We drive breakthrough technology that the world needs, and that will help our company grow. This latest expansion is just another sign of our commitment to technology and innovation.”

In other GE news in India, GE Security and Wipro Infotech yesterday announced the signing of a business partner agreement. As an IT service provider, Wipro currently provides information security solutions. The agreement with GE Security, which has expertise in areas such as explosives detection, video surveillance and access control, is designed to aid Wipro in offering physical security for clients such as the government, universities and the hospitality sector.

* Read the announcement

Read some press coverage:
* Business Standard: GE adds green ‘Odyssey’ to its India centre

The challenges are great, but, so, too, are the opportunities to address them head-on. According to the World Health Organization, of the 2 billion people around the world that lack access to basic human needs (water, healthcare, electricity), more than half of them reside in Asia.

A focus on affordability and accessibility is critical, such as developing local products in the countries in which they’re needed.

“For example, we have a handheld ultrasound that looks a little bit like a big iPod, and this was developed in China for the China market,” John said. “Now it is a product that we can take to other markets. That concept is what we’re now working on in all emerging markets.”

* Watch the full webcast.