Friday, November 23rd 2012 - 23:41 UTC

‘Business climate’ up in Latam; lack of competitiveness and skilled labour remain challenges

Brazil, Bolivia and Chile had the best ‘business climate’ in Latin America during October according to the Economic Climate Index, ICE from the Brazilian think-tank Getulio Vargas Foundation, FGV.

Peru, Uruguay and Brazil ranked first in the last 12 months according to FGV

The ranking for the month is as follows Brazil, 6.1; Bolivia, 6; Chile, 5.9; Peru, 5.8; Paraguay, 5.5 and Uruguay, 5.3. However if the last four quarters are taken into account, Peru ranks first, followed by Uruguay, Brazil, Ecuador and Chile.

Overall for the region the ICE climbed from 4.8 to 5.2 in October, which means the level is back to its April position and well above the 4.4 from October 2011, when it dropped to its worst level since the economic crisis of 2008.

The region’s ICE is calculated every quarter by the FGV and the German Institute for Economic Research from the University of Munich and for October’s index took into account the assessment of 140 specialists from 18 countries in Latin America.

The index showed an improvement of the region’s ICE for businesses despite a worsening of the business climate in the world because of the expanding crisis. The global ICE dropped from 5.2 in April to 4.7 in July and 4.6 in October.

However the index on the current situation, ISA which assesses the current economic situation in Latin America climbed from 4.9 in June to 5.1 in October, and “remains at a relatively low level”

The Expectations Index, IE, that estimates six months ahead for Latin America went from 4.6 in July to 5.3 in October, “its highest level since January 2011”.

The improved expectations index, “marks an expansion phase of the economic cycle in coming months” even when the assessment of the current situation in October “is showing that the environment is quite cloudy”, points out the release.

Nevertheless FGV admits that “a vigorous expansion cycle in Latin America will not take place until the main barriers for the recovery of the global economy have been dissipated”.

“In the countries considered the index improved between July and October, but the climate remains unfavourable, as in Argentina, or stable for Mexico, Ecuador and Venezuela”, says the report. No country has reached the economic cycle expansion phase, since all are in the phase of recovery or in a declination phase”.

According to FGV, the main economic problems in the Latinamerican countries indicated by experts consulted continue to be the lack of competitiveness and skilled labour.

The system to make the evaluations employed by FGV is based on quantitative and qualitative questions to the 140 experts from 18 countries on the three indexes, ICE; ISA and IE. Positive replies get a 9; indifferent replies get a 5 and negative replies 1. On the points from the answers an average is worked out.

18 comments Feed

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1 British_Kirchnerist (#) Nov 24th, 2012 - 12:41 am Report abuse
Bolivia ahead of right wing poster boys Chile, Peru and Paraguay =)
2 Sergio Vega (#) Nov 24th, 2012 - 02:35 am Report abuse
1 @ What a joke, hum....!!!!

Very clever teh “economic poll makers”......
3 TipsyThink (#) Nov 24th, 2012 - 09:49 am Report abuse
Latin America région is wéalthier than Africa
at behínd of all other côntinents,.régions.
4 jkw (#) Nov 24th, 2012 - 03:22 pm Report abuse
Mujica is the story of Uruguay, is he not? But more telling in the abstract, he is a metaphor for South America. When our great grandchildren, read the history of the Americas, North, Central, and South, Mujica will perhaps be only a footnote: “Elected in 2009 as a Leftist President after 15 years of incarceration as a political prisoner.” Yet, his story defines the character of South America as a confluence of nations struggling each in its own way to cast off the bonds of colonialism and the empire builders who in the modern era practice their exploitation in the guise of international aid and development with the oh-so-civilized IMF and World Bank acting as bagmen.

It is not difficult to imagine a different sort of capitalism than the predatory capitalist and his jackals and thieves who gang rape a nation while its corrupt leaders hold it down as the “debt makers” use the most parasitic and dysfunctional tools imaginable to force economic enslavement upon a people in order to privatize and control that nation's infrastructure....One need only recall the BBB, Bankers Bechtel and Bolivia as a reminder of this behavior.

One thing I do hold close is the belief that in 100 years, those predatory capitalists who would destroy South America to fill the pockets of a few, will be replaced by mutual reward capitalism which benefits everyone and rewards those who manage quite well for their work.
5 Captain Poppy (#) Nov 24th, 2012 - 06:10 pm Report abuse
One thing I do hold close is the belief that in 100 years, those predatory capitalists who would destroy South America to fill the pockets of a few, will be replaced by mutual reward capitalism which benefits everyone and rewards those who manage quite well for their work.

And December is the end of the world. Nice prediction, no one here can verify it. I say in 100 years.....Somalia will be the leader superpower, lead by the offspring of Farrah Hassan Aidid with the strongest pirate navy on earth.
6 jkw (#) Nov 24th, 2012 - 09:28 pm Report abuse
#5 Captain Poppy: Whether you are persuaded is your decision, not mine. I can only point out the past behavior of predatory capitalists, , and Mujica's rise to power, and my belief that he is a metaphor for South America in general and that South America will not be slave to predatory capitalists 100 years from now....jackals and bankster bagmen notwithstanding...and that a mutual reward capitalism model will become the obviously believe in different model of capitalism than I. Your model is based on fear and disparagement of those who through the contingency of birth and other circumstances are not up to the quality of the capitalist class you seem to believe is superior in some way.........
7 Captain Poppy (#) Nov 25th, 2012 - 01:05 am Report abuse
You know nothing of my believes other than what I tell you. One thing is certain, south america and North America started at the same time, one found success and the other chaos. south america will be what it has always been based on it's history, which has always been a direct result of it's corrupt leadership, history of coupe after coupe, class warfare, failure to provide opportunity to work oneself up and most of all, the premise that the government knows what's best for you more than you do yourself.

Support your statement:

Your model is based on fear and disparagement
8 DanyBerger (#) Nov 25th, 2012 - 10:17 am Report abuse
@Captain Poppy

How someone so successful like you living such successful country like yours is wasting his precious time with losers like us that want to live in the southern loser countries?

Any logic explanation?

Because none seems to give a damn thing about your success have you noted that?

What about to get lost? hug?
9 jkw (#) Nov 25th, 2012 - 12:32 pm Report abuse
#7 Captain Poppy....Anyone reading your comments knows what your belief system is. And your understanding of the historical contingencies governing the evolution of the nations of South America, Central America and North America appears to be that they started at the same time and therefore their differences must be because of corruption in South America. And ironically, you are of course, in complete agreement with my argument. (You do understand that, do you not?) And as far as the remainder of your comment: that is typical US Tea Party lipsync when no sound refutation can be brought to bear.
10 Captain Poppy (#) Nov 25th, 2012 - 04:05 pm Report abuse
#9 Tea Party.....again you make statements on assumptions. I could not be father from being aligned with the radical right Tea Partier's, that made me snort coffee out my nose reading it. I think you believe if someone does not believe in Socialism they are radical right. Tea Party is a dying movement and fringe group. But your papers and news probably do not report that. I would be happy to show you my voter registration card that under PART ALLILIATION is listed as unenrolled......a Massachusetts designation Perhaps a concession I would ceed is that maybe I do not understand what you define as Mutual Captalism, but I do not belief in government stealing businesses.
11 Yuleno (#) Nov 25th, 2012 - 05:38 pm Report abuse
You know I get sick of posters who think no one knows anything unless they tell them.For example-
Poppy is very opinionated,but he didnt tell me.
S Am will shed the northern domination as the china/India/Russia block grow and flourish and gain greater ownership of intellectual property,but poppy Didnt tell me
The tea party is declining as a party but the extreme rightist ideology is no weaker for that,but poppy Didnt tell me.
So Poppy is none of it true.
Are you not opinionated?
Will S Am not loosen the chains as china/India/Russia grow?
Is the rightist ideology any weaker?
Tell me Poppy.
12 Captain Poppy (#) Nov 25th, 2012 - 07:13 pm Report abuse
#9 Tell me and define what is mutual capitalism? I would be more than happy to tell you what I think, though I am sure you don't care, but I am interested in what you define as mutual capitalism?

yulena you are not worth responding to with the way you talk and attempt to convey a point. If you have a question ....ask, rather than play the dance because I won't dosado
13 jkw (#) Nov 25th, 2012 - 09:14 pm Report abuse
#12 Captain Poppy....I am sorry I didn't explain in this post what I mean by mutual reward capitalism. I explain it now and again in other places and I sometimes forget. What I mean by it in broad terms is that both capital and labor derive benefits mutual and meaningful to each, as opposed to either taking advantage of the other, as in predatory capitalism or unionized thuggery.

Or, and I seldom go into this detail, but you asked a fair question and it deserves my best answer. Those with (1) production capital can easily secure at least the same if not better profits by ensuring that their workers are paid well with meaningful job security and benefits; that their customers are sold quality goods and products at a fair and reasonable price-- not shoddy, or poisonous or at any point derived from exploited labor, poorly paid labor treated as commodities rather than human beings; all of which combines to provider a secure and therefore comfortable consumer class; and (2) financing capital lends to nations seeking infrastructure loans only on terms and conditions which never include terms for and specifically agree not to secure repayment through privatization or ever require waivers of sovereign immunity or status, with no condition whatsoever to use corporations suggested or chosen by the lender; all loans must be based on reasonable risk assessment instead of the inextinguishable debt and privatization model now employed.
14 Yuleno (#) Nov 25th, 2012 - 10:40 pm Report abuse
That's a interesting post.Capital,as Marx pointed out,has a life of its own.It has to increase and grow otherwise it is money.
Capital is one thing and money is another.Why would a capitalist employ her capital if is was not going to grow.So her first priority is to accumulate more capital,not to distribute it.
The problem is,is that capitalism arose at a particular time in history.It is not the only way to organise economic and social activity.Your mutual reward capitalism is what already takes place.It just isn't equal because the capitalist wants the maximum reward he can get while maintaining the system which promotes her interests.
Poppy knew that,I think it was he who told me.
15 ManRod (#) Nov 26th, 2012 - 12:50 am Report abuse
“ # 3 TipsyThink
Latin America région is wéalthier than Africa bút at behínd of all other côntinents,.régions.”

Not yet, South America has still a way higher per capita income than Asia.

4 South America 9,024 USD
5 Asia 2,941 USD
16 Captain Poppy (#) Nov 26th, 2012 - 01:07 am Report abuse
I can accept most of that jkw. We call that ”conscientious corporations in the USA. Regardless what others may believe we have many of them and I work for one, a whole natural food distributor. My company gives 30% of it's profits back to it's employees. The labor are part owners. Though they tend to be smaller corporations. We do under 10 billion a year. I thought you meant more in line of government owning businesses and I am dead set against that in most all settings. I agree that their is a trend moving this way.
I don't think lending to nations can work because the whims and directions change with the wind. Lending to nations can be much riskier lending to individuals. If they lend, what guarantees do they have they will be paid back and the newest leader claiming the previous administration was illegitimate and the debt was illegal? There needs to be something in place. The pari passu clause is all but extinct in current financing. Other than that I agree with you.
17 DanyBerger (#) Nov 26th, 2012 - 08:13 am Report abuse
@Captain Poppy

1- “My company gives 30% of it's profits back to it's employees”

This will be called Marxism, communism, Stalinism, in Argentina.

2-“Lending to nations can be much riskier lending to individuals”

Can you see Poopy that you don’t have a clue about economy stuff.

Lending to governments if far, far, far less risky than to individual and all speculators knows that because their lending is backed with the taxed that people pay to keep running public things.

If you don’t believe me ask anyone from the Rothschild family they have made their financial empire by doing that.
18 Captain Poppy (#) Nov 26th, 2012 - 01:42 pm Report abuse
#13 FYI

Excesses in corporate greed will always exist as will corruption in politics and ineptness in political leadership.

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