US Urges Brazil and LatAm to Do Away with Cumbersome Red Tape

Presidential elections in seven Latin American countries this year have investors jittery over prospects that new leaders might undermine the region’s economic gains, leading international bankers said Tuesday in Belo Horizonte, the capital of Minas Gerais state, in Brazil.

There are political, market and economic concerns with the upcoming elections," said William R. Rhodes, president and chief executive officer of Citigroup Inc.’s Citibank NA banking unit, to reporters at the Inter-American Development Bank’s annual meeting.

Rhodes and Roberto Setúbal, chairman of Brazil’s Banco Itaú SA, said most governments in the region have adopted prudent fiscal policies, allowing economies to flourish amid an overall political tilt to the left.

But they said investors should be cautious ahead of elections this year in Brazil, Colombia, Ecuador, Mexico, Nicaragua, Peru and Venezuela.

While most presidential candidates appear to support orthodox monetary policies aimed at slow, sustainable growth and lower inflation, changes in fiscal policy could send investors fleeing to safer markets, Rhodes and Setúbal said.

Investors have poured money into Latin American markets over the last several years because of the region’s newfound economic stability. But the political uncertainty of the elections makes this year’s outlook less certain.

Rising interest rates in the United States and Europe also might lure away investors who had sought higher rates in emerging markets. Rhodes and Setúbal said small investors who have been seeking big gains in Latin American markets should be careful to keep their portfolios diversified to reduce their risk.

In sessions focusing on individual economies, Colombian and Uruguayan officials reported their nations are seeing solid growth with low rates of inflation and unemployment.

Colombia "is seeing a clear recovery" from a 2000-2003 recession, said Finance Minister Alberto Carrasquilla. "The growth is quite robust." He predicted the country’s economy will expand at least 4.5% this year.

Uruguayan Finance Minister Danilo Astori said his country is experiencing an export boom after a financial crisis from 2001 to 2003 that was largely a spillover from troubles in its much larger neighbors, Argentina and Brazil. Uruguay is on track to grow 5% this year, Astori said.

Delegates at the IDB meeting are discussing how to improve the region’s crumbling infrastructure, boost economies, promote regional integration and improve living standards in a region where governments have largely failed to eliminate a deep economic divide between rich and poor.

The U.S. delegate to the forum said governments must find ways to eliminate cumbersome tax and regulatory barriers, enforce property rights and increase financing so small and large businesses can expand and create jobs.

"We must not forget that it takes more days to start a business in Latin America than in any other region of the world except sub-Saharan Africa, and more days to enforce a contract than any other region," said Clay Lowery, the U.S. Treasurer’s assistant secretary for international affairs.

Mercopress – www.mercopress.com

Tags:

  • Show Comments (1)

  • Guest

    “”We must not forget that it takes more days to start a business in Latin America than in any other region of the world except sub-Saharan Africa, and more days to enforce a contract than any other region,” said Clay Lowery, the U.S. Treasurer’s assistant secretary for international affairs.”

    And in these aspects Brazil is the WORST in South America!!

    Only 1-2 countries rival brazil in the entire world in time and bureacracy in opening up a company, enforcing contracts, % of taxes levied, and they exist in Africa!!!

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

Brazil Has 15% of the World’s Children Working in Mines: 146,000

A study by the International Labor Organization (ILO) reveals that one million children and ...

New Presidential Poll Shows Marina Silva Ahead Where It Counts: The Second Round

A new survey released by the Brazilian Institute of Public Opinion and Statistics (Ibope) ...

Christmas Brings Chaos Back to Brazilian Airports

On the eve of Christmas, Brazil’s main airports have once again become a battleground ...

Gol Gets Its 100th Aircraft, a Boeing 737 Especially Designed for Brazil

With the delivery of its new Boeing, Brazilian Airline Gol and its subsidiary Varig ...

Investors from US, Japan and Europe Are in Brazil for WFIC Congress

Starting today and running through Sunday, September 21, Brazil is holding the World Individual ...

A Plan to Sell Brazilian Typical Food to the US and Then the World

The Ethnic Brazil Project wants the world to consume typically Brazilian products, like juice, ...

Brazilian Airline Gol

Gol Airline Vows to Become Number One in Brazil by Year’s End

Brazilian airline Gol purchased Varig for approximately US$ 275 million. With the inclusion of ...

Brazil Wants to Lower Number of Blank and Annulled Votes

The president of Brazil’s Federal Election Board (Tribunal Superior Eleitoral) (TSE), Marco Aurélio de ...

Brazilian Shoe Exports to Middle East Grows Above Average

Brazilian shoe industries had revenues of US$ 15.5 million with exports to the Arab ...

Full Plate of Trade Fairs for Brazil in Arab World

The Arab Brazilian Chamber of Commerce (CCAB) is going to promote Brazilian company participation ...