Corruption and the cost of doing business in Latin America and the Caribbean

SEBASTIAN FREILLE

Country Forecast: Latin America Regional Overview

Economist Intelligence Unit

Lugar: Londres; Año: 2008 p. 15 - 15

0966-9396

orruption in Latin America and the Caribbean is perceived to be among the worst in world. Only in Africa is corruption more widespread and pervasive,   according to Transparency International. According to the organisation,corruption is considered a serious problem in 24 out of 32 Latin American and Caribbean countries included in its survey. It ranks among the biggest business concerns and has been singled out as the greatest single obstacle to economic development. It restricts long-term investment and growth because it introduces distortions in the allocation of resources. Corruption increases the cost of investment when kick-back payments are needed to obtain a license or a contract. It can be viewed as an additional tax and many firms are reluctant to consider investing in regions where such additional taxes are high. It also caus