The world’s citizens have always been beset by risks of different types, but the frequency and intensity of risks from a variety of sources are increasing, especially for emerging economies in Latin America and the Caribbean. Insurance is the preferred recourse for those suffering from unfortunate events beyond their control, but even insurance has its limitations. What are the most effective risk-management tools available today?
As economic conditions return to “normal” in the industrial world, policy interest rates will inevitably rise from zero to “normal”—but not necessarily in Latin America and the Caribbean. Central banks in LAC will need to tailor their monetary-policy decisions to tackle the three-pronged challenge of currency depreciation, higher inflation and deceleration in economic activity, as capital flies away from emerging markets.
Chile, one of Latin America’s most resilient economies, has not been shielded from recent global headwinds, such as low commodity prices and slow growth of key trading partners. Even so, the country is well equipped to exploit the opportunities of economic diversification, banking partnership and international trade.
Chile is clearly one of Latin America’s success stories, with a strong, robust and open economy. Although high world copper prices did contribute to the swelling of its state coffers, avoidance of Dutch disease and the economy’s move towards a greatly
Colombia, Chile and Peru have agreed to combine their stock markets into the Latinamerican Integrated Markets (MILA). The move comes to expedite the money exchange operations of the three partners. Participating partners are the Electronic Bourse of Chile, the Colombia Stock Exchange, the Stock Exchange of Lima, Colombia’s Set ICAP EX and Datapec from Peru.