Chile is best and Venezuela worst in Latin America when it comes to overall business climate.
BY CHRONICLE STAFFBrazil may be the hottest destination in Latin America for foreign investors these days, but it’s not the country with the best business climate. That honor goes to Chile. And Panama is just behind, followed by Peru, Uruguay and the Dominican Republic, according to the third annual Latin Business Index from Latin Business Chronicle.
The index of 19 countries is the broadest measure of business climate in Latin America. Rather than looking at the size of a country’s GDP or GDP per capita, it looks at five key categories and 27 subcategories to measure the recent, current and future business environment in a country. They are:
Macro Environment (GDP growth 2006 and 2007, estimated growth this year and forecasted growth next year, inflation 2006 and 2007, estimated inflation this year and forecasted inflation next year).
Corporate Environment (corporate tax rates, access to capital for entrepreneurs, ease of doing business (including starting and closing a business) and economic freedom).
Globalization & Competitiveness (globalization, competitiveness, tariffs, education/ health and security for companies and businessmen).
Technology Level (PC, Internet, broadband, wireless and fixed telephony penetration).
Socio-Political Environment (political freedom, political stability, political outlook, business policies of …
Best for doing business: Chile, Mexico and Uruguay. Worst: Haiti, Bolivia and Nicaragua.
BY CHRONICLE STAFFChile cements its position as the best country in Latin America to do business in, according to the second annual Latin Business Index from Latin Business Chronicle.
“Chile is actually a developed developing country,” says Jerry Haar, a professor of management and international business and associate director of the Knight Ridder Center for Excellence in Management in the College of Business Administration at Florida International University. “It’s not Belgium, but it’s not Bolivia either.”
Kathleen Barclay, the Chile-based former executive with JP Morgan Chase who chairs the Association of American Chamber of Commerce in Latin America, also sings the country’s praises.
“Doing business in Chile is straightforward – there is sustainable economic growth and solid political institutions,” she says. “The rules of the game are clear and investors – foreign or domestic – are given the equal treatment. Most importantly, when doing business with Chile you deal with quality people who have high ethical standards, The challenge to be successful in Chile is to be competitive.”
Mexico, Latin America’s second-largest economy, came in second. However, Uruguay replaced Costa Rica as Latin America’s third-best country to do business in.
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