Corruption and Poor Education Put Brazil at the Bottom in LatAm

Chile is Latin America’s most ethical and sustainable country for business according to a new study by ethics rating firm Management & Excellence (M&E), Madrid.  Latam’s largest country Brazil comes in a weak 5th while Mexico makes 2nd and Argentina comes in 3rd.

Sixteen years after the exit of Augusto Pinochet and return of democracy, Chile transitioned to a modern, open economy and leads in anticorruption efforts.  It was first to initiate corporate governance reforms in 2000, broadening shareholder rights and increasing the powers of independent directors.
   
The M&E study is the first ethics and sustainability ranking of Latam’s eight largest countries using 60 points of quantitative data in areas such as corporate governance, fiscal and economic performance, security and social performance, educational performance and performance against corruption to determine “ethics” (good policies) and sustainability.
   
Second-ranked Mexico is aided by its economic proximity to the U.S., which fuelled its GDP per capita growth.  Mexico’s trade with the U.S. increased by 175% since the North American Free Trade Agreement took effect in 1994.  Its GDP per capita is higher than Chile’s.


Argentina is only 1% below Mexico but has a different profile.  Since the 2001 financial crisis, Argentina is struggling with a public debt that is 65% of its GDP and the third-highest inflation rate in the sample.  Yet Argentina leads in areas which were good before the crisis and are still strong, such as education.


Brazil is strong at corporate governance where Lula’s government has spearheaded reforms, but it ties with Colombia for last place in crime and unemployment.  It loses points for corruption and poor education.


Sharing the fifth spot with Brazil is Venezuela, but with a very different profile.  Venezuela is the worst in corporate governance, together with Ecuador.  Economically, Venezuela is among the weakest performers with the highest inflation rate (31.1%) and lowest in economic freedom.


The M&E study is for sale at info@management-rating.com.


Rank of Countries
                         Country            Score
                         1. Chile              74%
                         2. Mexico           60%
                         3. Argentina        59%
                         4. Peru              51%
                         5. Brazil             47%
                         6. Venezuela       47%
                         7. Ecuador          37%
                         8. Colombia         31%

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Ten-Story High Floating Platform Goes in Service off Brazil’s Coast

Brazil's government managed hydrocarbons corporation Petrobras began yesterday oil and gas extraction from the ...

Brazil Hopeful Lower Interest Rates Will Create More Jobs

At yesterday’s, January 18, presentation of the General Register of Employment and Unemployment (CAGED), ...

It’s Brazilian Hélio’s day! A Cinderella Story at the Indy 500

On a day that could never have been imagined the very foundation of Brazilian ...

LETTERS

Organized over the Internet, gringo sambistas from 19 countries invaded the Sambadrome in Rio ...

US Inflation Once Again Brings Down Brazilian Stocks

Brazilian stocks retreated, extending recent losses, on continued worries about rising U.S. inflation and ...

Brazil’s Petrobras Celebrates Records in Production and Stock Price

The total oil and gas production by Petrobras, Brazil’s state owned oil company, increased ...

Lula Now Has to Decide Whether This Italian is a Freedom Fighter or a Murder

The Italian prime minister Silvio Berlusconi arrives in Brasília on March 8. It is ...

Brazil Wants More Time to Pick a Digital TV Format

Once again the announcement on the digital TV format that Brazil will adopt (or ...

Too Much Iodine in Salt Causes Thyroid Diseases in Brazil

A survey by Brazil’s University of São Paulo School of Medicine (Faculdade de Medicina ...