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Latin America Security Index

I

n recent years, multinational corporations have stepped up their investments in emerging markets in order to take advantage of the more rapid growth rates and increasing consumer purchasing power.  Many companies now generate almost all their growth and a similar amount of profit from emerging markets as they do from the developed economies.

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

 
Improvement
 
Worsening

 

Key International City Comparison




City danger levels are designated from "1" (indicating that a city is not dangerous) to "5" (indicating that a city is very dangerous). When a score is accompanied by the plus (+) sign, it means that city approaches the higher score, and the min (-) sign means that city is approaching the lower score. 

The rating is based on analysis of official figures from departments of public safety, police, local governments, non-government organizations and research institutes, as well as information from public and private sources.

 

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



 
 
The views expressed in this article are those of the author and not necessarily those of FTI Consulting, Inc., or its other professionals.

Published November 2012

© Copyright 2012. The views expressed in this article are those of the author and not necessarily those of FTI Consulting, Inc., or its other professionals.

About The Author


Frank L. Holder
frank.holder@fticonsulting.com
Chairman, Latin American Region
Forensic & Litigation Consulting
FTI Consulting

Practices


Forensic & Litigation Consulting
The Forensic and Litigation Consulting practice at FTI Consulting provides multidisciplinary, independent dispute advisory, investigative, data acquisition/analysis and forensic accounting services to the global business and legal community. Our team supports clients facing high stakes litigation, arbitration and compliance investigations, and regulatory scrutiny.
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The views expressed in this article(s) are those of the author and not necessarily those of FTI Consulting, Inc., or its professionals.
©Copyright, FTI Consulting, Inc., 2012. All rights reserved.

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