- Datum: 30.01.2024
- Category:Berichte & Analysen
AMi Report: Why LatinAamerica is out of love with the left
One of the side effects of higher interest rates is the dwindling investor tolerance for leftist policies or bad governance in Latin…
One of the side effects of higher interest rates is the dwindling investor tolerance for leftist policies or bad governance in Latin America. With U.S. treasuries paying 5%, why would anyone bet on Latin American leadership that makes an enemy of capitalism?
The contrasting sentiments shown for Argentina versus Colombia provides stunning evidence of the change in investor thinking. In less than two years, Gustavo Petro has turned Colombia, Latin America’s investment darling, into an uncertain place to do business. Three of Colombia’s most promising private sectors—oil & gas, healthcare, and coal production, which are collectively responsible for more than half of the country’s exports and foreign investment—are all under attack from policies and regulations steeped in ideology and naivete. Oil and gas exploration was halted, ostensibly to save the environment. We now know this was simply a ploy to justify importing PDVSA gas via a (to be refurbished) coastal pipeline. The move benefits the Maduro administration, an important ally, and will bring jobs to the Colombian coast where Petro needs more electoral support.
Read more here.