It is no secret that Latin American countries are in an endless battle to attract Foreign Direct Investment (FDI) and implementing strategies to help boost their development. Although each country has different social and political environments, most offer an exceptional work force and economic incentives which provide opportunities for investors and businesses. Understanding the local culture, regulations, processes and requirements is key in avoiding the risks when investing in this region.
Even though efforts have been made across the Americas, additional funds are needed to sustain growth and competitiveness, in addition to improvements in areas such as transport infrastructure and telecommunications. In order to achieve higher levels of productivity, many countries in Latin America have been working on several efforts that are projected to help the region become a solid competitor in the international investment market. Below are 8 of the most recent projects taking place:
Brazil's latest payroll regulation changes will help the federal government to collect labor, social security, tax and fiscal information for employees around the country. Named e-Social, the project will unify information about the employment relationship of all workers and will require that employers transmit all information referring to their labor force via an online portal, streamlining the process of payroll reporting.
In 2011, Peru, Chile, Colombia and Mexico created the Pacific Alliance, an initiative of political, economic and regional cooperation aimed at promoting larger growth, development and competitiveness of the countries' economies through the free circulation of goods, services, capital and persons. To date the group has made progress in areas like: fiscal transparency, creation of infrastructure funds, deepening of free trades agreements, regulatory reforms and harmonization of rules and joint promotion of exports.
Mexico's government amended the country's constitution to implement an Energy Reform aimed at opening the industry to allow the private sector to explore, develop and produce oil. The IMF estimates that the new legislation will cause a 13% reduction in electricity prices. It also estimated that the manufacturing industry will grow up to 3.6%, impacting the national GDP by 0.6%.
Last April, the Colombian government launched the PIPE 2.0 Plan, an initiative aimed at...