Venezuela's score drops dramatically on Latin America's index of best and worst countries for business.
BY CHRONICLE STAFF
As president Hugo Chavez continues to strengthen his grip on Venezuelas economy, its business climate is in free fall, according to the fourth annual Latin Business Index from Latin Business Chronicle. While Venezuela again managed to rank as the worst country for business in Latin America, its overall score fell dramatically, largely thanks to high inflation.
Meanwhile, Argentina has dropped six places to 17th place, making it the third-worst country after Venezuela and Haiti, also in large part because of its high inflation combined with poor results in most other categories.
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 2007 and 2008, estimated growth this year and forecasted growth next year, inflation 2007 and 2008, 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).
- Political Environment (political freedom, political stability, political outlook, business policies of government and corruption).
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Keywords: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela