Introduction: Can Latin America Compete?

Adecline in foreign direct investment and reinvestment in the Americas, in tandem with a sharp rise in Asia; the resurgence of antiliberal populism (for example, in Venezuela, Bolivia); widening income inequality; excessive business regulation; barriers to financial access; lackluster educational performance; paltry expenditures in R&D; and deteriorating infrastructure lead one to seriously question: Can Latin America compete? On the other hand, macroeconomic stability, low inflation, privatization, trade liberalization, increasing technology adoption and dissemination, and the ongoing boom in the demand and prices of commodities serve as significant counterweights to the negative indicators cited. The growth and expansion, regionally and globally, of Latin American multilatinas such as Embraer, Carvajal, América Móvil, Falabella, Odebrecht, and Techint are testimony that selected Latin American firms—if not entire nations—can, indeed, compete.1