During the recent Alacero Congress 59 in Cartagena, Colombia attended by SteelOrbis, several economists had the opportunity to present on the risks and opportunities to Latin America in today’s changing world.
Juan Carlos Rodado, a Senior Advisory Director for Growth Markets at Caisse de dépôt et placement du Québec (CDPQ), one of Canada’s large investment funds, discussed the political risks in Latin America and provided suggestions for some structural changes. As an investor group, he noted that recent presidential changes in Chile and Colombia from center left to center right, Mexico’s shift from center-right to left, and Brazil’s shift from center left to right are important factors in the evaluation of where to invest in Latin America. Movements to the left are viewed by investors as concerning, but movements to support democratic governance, rebuild social contracts, reduce corruption, and guard against over-dependence on China can help Latin American companies attract more foreign investment. Political and structural movements to the right by Brazil and Colombia are expected to provide them with an opportunity to help lead the Latin American economy.
Mario Cimoli, the Deputy Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), noted that Latin America is affected by politics and stated, “Enterprises needs to partner more and more with political infrastructures for better labor development, technological planning and economic planning that reflects itself in improvements to the social dynamics of its citizens.”
Alberto Robles, Vice President for Latin America Airbus, noted the need for innovation and investment in Latin American steel companies to gain certifications and become part of the higher-value supply chain.