LATAM : Foreign Investors Survey 2017 agriculture ( Bolivia and Cuba ); Food ( Bolivia ) electricity and automotive ( Mexico ); Telecommunications ( Bolivia , Dominican Republic , Honduras , Nicaragua ); Technology ( Chile ); Energy ( Bolivia ); Renewable energies ( Central America ); Trade and manufacturing ( Guatemala ); Insurance ( Bolivia ); Acquisition of companies with local operation ( El Salvador ).
Some political risks contained ...
Respondents transmit messages of tranquility regarding the political stability of the Region , although zero risk does not exist . The exception is Venezuela and , as for Cuba , “ in the current situation , political risks tend to be significantly reduced ,” says Juan José Cigarrán Magán , Partner of Cigarrán & Asociados .
Countries where there is no political risk at the moment , according to the respondents , are Chile , Colombia , Costa Rica , Honduras , Panama , Paraguay , Dominican Republic and Uruguay .
In the case of Chile , Daniela Pardo , Associate , and Marco Salgado , Partner of Bahamondez , Álvarez and Zegers , explain that “ although in Chile there are large processes of legislative reform in several aspects ( especially taxation , which can directly affect foreign investment ), Chile presents itself as a country with a political consensus on macroeconomic policies and on foreign investment in particular ... which is protected and encouraged institutionally .”
In Costa Rica , instead of political risk , one can speak of political inactivity given the current conjuncture . At the moment , there is no political risk in Honduras , which is under a right-wing government from 2014 to 2018 . However , it is now possible to re-elect the same president several times and it still has not been decided how many times .
In Panama , José Agustín Preciado , Partner of Fabrega , Molino , Mulino , mentions that there exists a “ stable democracy in which there is a balanced economic activity ” and “ where the State proposes programs of investments and public management that favor the intervention of foreign investors in favor of the country ’ s growth .”
The Dominican Republic also has no risks since , as Juan Alcalde , Partner of OMG , explains that , after the elections in May 2016 , President Danilo Medina of the Dominican Liberation Party renewed his mandate for another four years , while the ruling party consolidated its already large majority in the Chamber of Deputies and the Senate .
As for Uruguay , Santiago Fontana , Partner of Ferrere , explains that there is “ definitely no ” risk . It is a country that “ has always maintained a solid democracy and a respect for the institutions . Even in the toughest economic phase since the return to democracy in 2002 , all parties came together to find a joint solution and supported the then-president , Jorge Batlle . All Presidents since 1985 have been actors with a long tradition within the system of political parties , one of the oldest systems in the world , with two traditional parties that have 180 years of life .”
In the list of countries with mitigated political risks , Peru enjoys this situation of political calm since the election of President Pedro Pablo Kuczynski in 2016 . According to Alexandra Valdivia , Partner of Flores Nano & Soto , “ at the corporate level , given the well-known trajectory of the current president and the technical group that accompanies him , I think there is also a sense of tranquility in the social , economic and political areas .”
“ In Peru , at the corporate level , given the well-known history of the current president and the technical group that accompanies him , I believe there is also a sense of tranquility in the social , economic and political areas .”
ALEXANDRA VALDIVIA , PARTNER FLORES NANO & SOTO
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