Developing and frontier markets in Latin America & Caribbean present a potent mix of risk and opportunity for mining, energy, heavy industry and infrastructure development.
The playing field is though, not level. Challenges include radical political positions, fragile institutions, economic turbulence and social division. Competition over land and water combined with poor legal certainty and arbitrary governance remain, particularly in provincial areas. These all create serious bureaucratic hurdles mixed with political risks, especially when resource nationalism, regulation bias, corruption and lobbying from other industries interfere.
Numerous unplanned impacts derail project timelines, upset budget estimates and cause lasting divisions and costs. Labor strike actions are exacerbated by government indifference to aggressive unions who wield voter power. Militant social protest groups continue to be fueled by inflation and populist politics.