Latin America: Driving Toward Sustainable Business Advantage

ign="center">decades. But unlike some of them, it has also
Like many other regions impacted by the globalwitnessed steady GDP growth above 5% per year
economic crisis, investors and business executivessince 2002, having posted a 9% gain in 2008.
across Latin America have been forced to recalculateThe economic ripple effects of the global financial
expectations of return on investment and corporatecrisis have reached Chile, where they are driving
earnings.increased unemployment, reducing the corporation
Brazil, the largest of the Latin American economies,valuation and moving business leaders to suspend
finds that the sheer size of its markets exposessignificant business decisions until the extent of its
them uniquely to the global economic currents, yetimpact is fully understood. The focus, clearly, is on
paradoxically, Brazil also finds its business growththe bottom line.
engines somewhat insulated from the sameOne of the primary drivers of future economic
challenges. While the full extent to which Brazil willdevelopment and expansion is the quality and depth
feel the ripple effect of the global recession remainsof Latin America’s labor force, including its
to be seen, there remains some confidence that itssenior management leaders, on whose shoulders rest
proactive economic steps will put the country on theboth the responsibility and accountability for driving
road to economic growth perhaps sooner than somebusiness performance in large regional and
of its neighbors in the region.multinational companies.
The road to economic recovery and sustainableAs the perspectives of TRANSEARCH
prosperity in Mexico will require it to decide how bestInternational’s Latin American executive
to stimulate its national economy in the face of thesearch consultants reveals, the pace of future
global recession, to address the devaluation of thebusiness growth will continue to hinge on the
peso, and to balance its dependency onregion’s ability to develop, attract and
manufacturing exports to the United States.leverage the right business leaders who can drive
The political, social and labor dynamics in the oil-richtalent equity and sustainable business advantage.
economy of Venezuela have created an atmosphereThis article is a summary of the White Paper entitled
in which enterprise management has to devote a'Latin America: Driving Toward Sustainable Business
great deal of energy and resources to adapt to theAdvantage'. Get your copy of the full White Paper
crises and potential crises created every day byvia the Transearch International website at It may
political decisions and behaviors.alter your view of the market and competitive
Like many of its neighbors in Latin American, Peruforces at work and how to evolve with them.
has experienced a number of crises in the last two