Politics in Latin America

In comparison to the political machines driving the United States and the European Union whose interests span far beyond their own people and borders, Latin American politics tend to be focused almost exclusively on the events going on within their own border, with the exception being trade and commerce.
Latin American politics tend to focus inwards rather than outwards which means that most international businessmen will need to get well-acquainted with the inner workings and current events of the countries.
For example, in Central America, the big issue at the moment is the war on drugs, which spans several countries and is an armed conflict between the drug cartels and the local governments. In South America, the main focus in many different governments is internal corruption and financial stability.
Knowing the current events going on in the country will prepare you and help guide some of your decisions for investing and working in a certain country. For example, the country of Paraguay is experiencing a political upheaval following a referendum passed that allows the current president to run for office past his term limits.
This has led to massive protests and riots were part of the senate offices was actually incinerated in the process. Elections, in general, are very important for business owners and it is   This situation merits enough concern for most investors to step back and wait for the situation to unfold before making their next move. Knowing the political field is extremely important when you are engaging in foreign business in Latin America.
Engaging in entrepreneurship ventures right before a transition of power is extremely risky as new governments can be quick to engage in economic protectionism or unfriendly foreign investment policies. Being able to  navigate these elections and power changes is essential to your success as a businessman in the global south.


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