|
In a global context of weaker foreign direct investment, FDI, in emerging markets because of "structural weaknesses", Latinamerica is also set to suffer, according to a report from the University of Columbia in New York and The Economist group.
The drop in capital inflow however will not reach critical levels and a rebound is expected beginning 2009, says the "World investment prospects to 2010: boom or backlash" report. Brazil, Mexico and Chile will continue to be the most attractive countries for foreign investment in the region. Brazil is expected to displace Mexico, totaling 17.2% of the US$ 72.1 billion the region will be receiving this year. Mexico falls to second place with 15% and Chile consolidates its third position with a 9.7% this year, an improvement from the 7.2% of 2005 when total FDI reached US$ 75.2 billion. Argentina is gradually recovering from the 2000/01 financial crisis and last year received US$ 5 billion equivalent to 6.6% of the region's total, ranking fourth, a position the country will consolidate in the mid term. However the figure is considerably less than the annual US$ 10 billion of the 1990s before the crisis. The report indicates that in the next two years FDI going to developing countries will experiment a contraction basically because of structural weaknesses such as servicing the foreign debt; costs of making business with excessive bureaucracies; infrastructure deficiencies, lack of social investment and uncertainty with the rules of the game. Karl P. Sauvant from Columbia University and one of the authors of the report says that the good performance of foreign capital in Latinamerica during 2005 can be attributed to "regional economic growth and investors looking for natural resources". However Laza Kekic from The Economist believes that "structural weakness will be the main FDI contention factor in the region in the immediate future". Sauvant and Kekic forecast that in 2007 the overall influx of capital to the developing world, compared to 2006, will drop to US$ 407.7 billion, 0.7% less, and even further in 2008 with US$ 404.7 billion, another 0.7% drop. Nevertheless by 2009 a 2.3% recovery is anticipated totaling US$ 413 billion and US$ 427.9 billion in 2010, up 3.4%. However another report but from the International Finance Corporation, IFC, the private sector arm of the World Bank shows that doing business became easier worldwide in 2005/06. Two hundred and thirteen regulatory reforms - in 112 economies - reduced the time, cost, and hassle for businesses to comply with legal and administrative requirements. Doing Business 2007: How to Reform finds that the top-10 reformers on the ease of doing business, in order, are Georgia, Romania, Mexico, China, Peru, France, Croatia, Guatemala, Ghana, and Tanzania. Thirteen other economies - Armenia, Australia, Bulgaria, Czech Republic, El Salvador, India, Israel, Latvia, Lithuania, Morocco, Nicaragua, Nigeria and Rwanda - had three or more reforms. Reformers simplified business regulations, strengthened property rights, eased tax burdens, increased access to credit, and reduced the cost of exporting and importing. Doing Business 2007 also ranks 175 economies on the ease of doing business - covering 20 more economies than last year's report. The top 30 economies in the world, in order, are Singapore, New Zealand, the United States, Canada, Hong Kong/China, the United Kingdom, Denmark, Australia, Norway, Ireland, Japan, Iceland, Sweden, Finland, Switzerland, Lithuania, Estonia, Thailand, Puerto Rico, Belgium, Germany, the Netherlands, Korea, Latvia, Malaysia, Israel, St. Lucia, Chile, South Africa and Austria. The best ranked Latinamerican country is Chile, 28; Mexico 43; Uruguay 64; Peru 65, Argentina 101 and Brazil 121. The rankings track indicators of the time and cost to meet government requirements in business startup, operation, trade, taxation, and closure. They do not track variables such as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates. Mercopress
 |
Subscribe to this comment's feed
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose. 
The push of vigilante groups in Rio de Janeiro's favelas (shantytowns) in the last three years is the most important and alarming information of the just-released study by the Rio de Janeiro University's Violence Research Center (Nupev-Uerj). 
A dispute over drug trafficking territory in Rio de Janeiro has intensified lately, leaving in its wake unprecedented acts of violence, such as the downing of a police helicopter in the northern zone of the city on October 17. Three policemen died and another two were injured. This event has drawn the attention of the international media, who are raising the issue of public security for the 2016 Olympics to be held in Rio.
But again Lula is proud of his failures and the Brazilian society will re-elect Lula to thank him for such a mess. The sad reality is that the more there is bureaucracy.....the more the government controls everything....and the less your are competitive....!
Your bureaucracy is in fact a form of dictatorship and Lula is addicted to that type of power. He is ready to use every form of legality AND illegality to keep that power at any cost.He is above the laws. He thinks he is second after God.