Building Prosperity in Latin America: Investor Confidence in the Rule of Law

Chairman Salmon on the hearing: “Rule of law, predictability, and strong democratic institutions are vital in providing the confidence investors need to bring economic opportunity, growth and jobs to any given country.  Latin America is rich in resources and human capital, but many countries in the region are plagued by corruption, weak institutions, and leaders who systematically erode democratic values.  Argentina’s continued flouting of past debt obligations places what should be a vibrant economy at risk of another default.  Market unfriendly regulations in Brazil, Ecuador, and Bolivia have similarly shaken investor confidence, affecting economic growth in the region.  This hearing will give my Subcommittee the opportunity to examine where confidence has been shaken, how U.S. economic interests are affected, and what if anything the United States can do to encourage greater transparency and market friendly approaches throughout the Americas.  The dire situation in Central America is a perfect example of how weak institutions and endemic corruption can have corroding effects on economic growth and opportunity.”