Category Archives: Latin America and the Caribbean

Focus on Youth Entrepreneurship in Peru and Nepal

CIPE recently published two new case studies on youth entrepreneurship programs in Peru and Nepal. Learn more about the dynamic young entrepreneurs who make these programs a success below.

Anil Parajuli

Nepal

parajuliAnil Parajuli attended the 11th Arthalaya program in early 2011 when he was pursuing his Bachelor’s in Development studies. After attending Arthalaya, he started a honey farm named “The Busy Bee” in a suburban town south of Kathmandu. He produces organic honey and sells it to selected clientele in Kathmandu. Anil says “It was Arthalaya that taught me it is important to get started and any small exchange that is based on voluntary exchange and value addition is a big contribution to the overall development of a society.” Arthalaya inspired him to continue his education in entrepreneurship by pursuing a MBA in Entrepreneurship at Kings College. He plans to open a resort near his honey farm once he graduates.

Antonella Romero Jimenez

Ica, Peru

EmprendeAhora ignited the entrepreneurial spark in Antonella Romero Jimenez when she was a participant in 2010. Hailing from the Ica region of Peru, Antonella had not previously given much thought to starting her own business, claiming that in her region “there had never been a program that promoted entrepreneurship among youth.” During the EmprendeAhora educational program, Antonella learned how to create her own business plan and afterward decided to open two cafes called “Káva – Café Peruano” at two universities in the Ica region. Antonella understands the impact entrepreneurship has on her country, saying “it fosters economic development and generates employment for myself and others in my region. Káva itself provides jobs for 12 people – all young women between the ages of 19 and 22.

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Broadband Internet Access and Development in Latin America and the Caribbean

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By Gustavo Guerrero

While broadband internet has become an essential business tool, it has been slow to arrive in the areas that need the benefits of development the most – namely rural regions of developing countries. Though there has been some growth over the years, there is still a long way to go. Recognizing this, the Inter-American Development Bank (IDB) released a report showing the effect of broadband internet on the economies of Latin American and Caribbean countries, outlining how countries can improve their telecommunications infrastructure.

Nationwide high-speed internet access is something that many in the developed world take for granted. However, in the developing world there is a different story. In Nigeria, low broadband penetration has been cited as hindering the development of e-commerce in Africa’s largest economy. Similar examples are present all across the developing world.  The potential for growth is there, waiting, but it cannot be realized until broadband penetration and speed are improved.

Having a web presence is now almost a prerequisite for becoming a successful business.  The specific type of web presence can range from simply listing basic business contact information and operating hours, to having an online sales portal. Being online offers many benefits with very few, if any drawbacks. While most businesses in the developed world have adapted to this new environment, businesses in many parts of the world lack basic internet access that would allow them to grow and thrive.

The report, Socioeconomic Impact of Broadband in Latin American and Caribbean Countries, consists of two major components which aim to promote broadband internet connection in the region.  The first is an econometric model for LAC countries which helps determine how increases to broadband penetration could affect their GDP.  The second is a set of recommendations designed to help governments best improve their infrastructure.

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Why Free Enterprise Matters for Democracy in Venezuela

By Gustavo Guerrero and Laura Boyette

The economic and political climate in Venezuela today has grown to crisis levels as the government consolidates power and limits the freedoms of entrepreneurs and the private sector through harmful legislation and the nationalization of private businesses. In the face of these challenges, the Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS) continues working hard to advocate for policies that will grow the Venezuelan economy and provide more opportunities to young entrepreneurs, both of which are essential to creating a brighter future for Venezuela. In May Jorge Roig, President of FEDECAMARAS, sat down for an interview with CIPE and discussed the role of the private sector and its advocates in Venezuela.

Roig stressed the importance of cooperation between business, society, and government, saying that without engaging these groups in dialogue, substantive change will not occur. In recent years, the Chávez and Maduro governments have depicted the private sector and organizations such as FEDECAMARAS as the source of Venezuela’s economic problems, claiming they have political aspirations. However, Roig defined the role of FEDECAMARAS very clearly – not to be a political power, but rather to influence it on behalf of entrepreneurs. Furthermore, organizations such as FEDECAMARAS not only protect free enterprise, but also support democratic values and act in the best interests of the society as a whole.

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Implementation Gaps and Public Information in Argentina

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In every country, sound laws are a key foundation of democratic governance and economic development. Crafting such laws, however, is only part of the path to success. The other half is making sure that the laws are properly implemented – which is often more challenging.

When laws and regulations are not properly adopted, such discrepancy creates an implementation gap – the difference between laws on the books and how they function in practice. This gap can have negative consequences for democratic governance and the economic prospects of countries and communities. Failing to fully implement laws undermines the credibility of government officials, fuels corruption, and presents serious challenges for business, which in turn hampers economic growth.

To help better understand why implementation gaps happen and how they can be addressed, CIPE and Global Integrity published Improving Public Governance: Closing the Implementation Gap Between Law and Practice. This guidebook offers starting points for identifying implementation gaps in various laws and regulations, asking why these laws and regulations are not fully adopted or practiced.

Based on the suggestions from the guidebook, the Center for the Implementation of Public Policies Promoting Equity and Growth (CIPPEC) researched whether Argentina’s access to information law is implemented by public entities, particularly by state-owned enterprise. The latest Economic Reform Feature Service article summarizes CIPPEC’s key findings from the research and policy reform suggestions needed to overcome the implementation gap.

Maiko Nakagaki is a Program Officer for Global Programs at CIPE.

No Laughing Matter: Press Freedom in Latin America Takes a Hit

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“Police and prosecutors search the home of Fernando Villavicencio and take documentation of corruption.” – Cartoon by Xavier Bonilla, published in El Universo on December 28, 2013.

Read about CIPE’s 2014 Global Editorial Cartoon Competition.

In recent years, Latin America has seen an overall shift away from media independence and freedom of the press – only one in 50 Latin Americans live in free media environments, according to Freedom House, even though the majority of Latin American countries are still democracies. The biggest drop — 15 points in the last five years — was in Ecuador, a clear illustration of the problems that can occur when democratically elected leaders curtail media freedom.

After Rafael Correa took office on a wave of populist charisma in 2007, the Ecuadorian media began to realize that they needed to watch themselves due to various acts against independent media that alleged corruption in the Correa family or the Correa administration. These attacks against press freedom were formally legalized with the Organic Law on Communications, passed in 2012 without open debate in the National Assembly or among civil society.

This law, which Correa lauded as a step toward the democratization of media and a strengthening of freedom of expression as it broke up a near-monopoly of news sources owned by a single family, also opened the door to greater state intervention in the media.

The major concern for media outlets is that many aspects of the law were left ambiguous, allowing for broad interpretation and arbitrary application. For instance, Article 26 of the law prohibits “media lynching” and allows public officials being investigated for corruption by the media to sue the journalist or the newspaper doing the investigating. Article 71 of the law defines information as a “public good” equal to water quality and electricity, and therefore subject to increased regulation by the state.

The most recent case of the Correa administration battling perceived defamation in the media is that of Xavier Bonilla, a political cartoonist known by the pen name Bonil.

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Venezuela’s Steady Decline

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To anyone who has traveled frequently to Venezuela, the deterioration of the country is palpable. By day, people fear driving and getting stuck in traffic because motorcycle thugs will tap on their window, show a gun, and demand the handover of cell phones and cash. By night it is worse: going out on the town could involve robbery, kidnapping, and risk of death, so the streets are empty on Friday and Saturday nights in a city that previously boasted an active nightlife.

Shopping is another sad tale — commercial malls show a lack of maintenance, and stores have little merchandise. The common refrain you hear everywhere is “no hay,” or “there aren’t any.” You hear that when asking for anything from cell phones to toilet paper. You hear it in restaurants, too, where chefs somehow manage to figure out how to cook without basic staples such as cooking oil or flour.

If you can even get an airline ticket to Venezuela—international carriers are prevented from taking their profits out of the country, so they are curtailing flights—you will find prices depend entirely on the exchange rate you are able to obtain. If you change money at official rates you will pay $25 for a sandwich and a cup of coffee. If you are lucky enough to obtain the parallel exchange rate—which is running upwards of 10 ten times the official rate—the same meal will cost you $2.50.

How do Venezuelans cope with living this way? There are significant segments of society that still support the government of Nicolás Maduro despite its inability or unwillingness to tackle the huge economic problems the country faces, and which they have mostly caused.  As the economy worsens, however, it seems unlikely that even the poorest segments of Venezuelan society who supported Hugo Chavez and now Maduro will continue to provide that support.

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Democracy and Economic Freedom in Venezuela

Recent developments concerning property rights violations and popular riots in Venezuela remind us that democratic and economic development is not always a gradual forward-looking process but instead is characterized by periods of progress as well as setbacks. Separation of powers, property rights, the rule of law, the respect of human rights and the rights of minorities are essential components of a functioning democratic and free market system.

Reflecting on the challenging situation in Venezuela and the business community’s experience of threats to private property rights, Jorge Roig, President of the Venezuelan Federation of Chambers of Commerce FEDECAMARAS, was invited by the Free Enterprise and Democracy Network to share his views in the latest Economic Reform Feature Service article

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