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This trend has not come without its risks and challenges.  One of the key issues affecting Latin America in particular is the need for public security.  It makes the region’s countries less competitive while trying to attract foreign investment. However, recent trends have demonstrated that major improvements can be made with a concerted effort between governments, the business community and civil society.  Even in the more challenging markets, investors who are armed with sufficient information and expert advice can mitigate this risk, allowing them to capitalize on opportunities.  

Latin America has been one of the regions of the world less affected by the financial crisis and, due to its relatively strong growth over the past years, has made some improvement as a whole in social inclusion, as well as resourcing the fight against crime, in some countries leading to an enhancement in public security.

Drug trafficking and the cartels that spring from the activity continue to wreak havoc on several Central American countries, as well as Mexico.

2010 – 2011 City Comparison

 

 

This is not expected to change in the short term, although a new president in Mexico may lead to a revision of the country's existing policies and strategies with regard to fighting the drug cartels. Political instability, long another problem that has plagued the region, has dropped significantly over the past several years and currently is not a major factor in public security.

FTI Consulting has made this index available to clients for the past five years to help them mitigate potential risk related to security issues and to orient them in terms of the differences between markets in the region as well as ongoing trends.

Latin American Countries 2012