Bureaucracy and slow digitalization hold back multinationals in Latin America
To be competitive internationally, countries must offer many advantages, starting with an environment that is easy to operate in. However, a new report from portfolio manager Mercator by Citco shows that the high cost of corporate governance in Latin America is holding back multinationals in the region.
State of play. The report shows that the in-house legal departments of these multinationals are finding it difficult to operate across the different jurisdictions in Latin America. Among the problems they face are: complex formal requirements within jurisdictions, fragmentation of local authorities, translation responsibilities, and the need to establish a local presence. All of this requires significant financial resources.
- The continent is 31 percent more expensive than Europe and 65 percent slower than North America for companies to operate.
Why it matters. “The digitalization drive in Latin America is still in its infancy, and the region as a whole lags significantly behind others when it comes to unifying and simplifying corporate governance processes,” explains Kariem Abdellatif, head of Mercator.
- “There are also a number of nuances and complexities across the region that...
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