Strengthening Anti-Corruption Reform in Peru

Hand Rejecting MoneyDuring his political campaign, the newly elected President Pedro Pablo Kuczynski promised to tackle corruption arguing that it was one of the most important impediments to investment and growth in Peru. Using special legislative powers granted by Congress as a quick mechanism for the enactment of planned reforms, Kuczynski and his administration have already enacted 112 legislative decrees, including a number of significant anti-corruption measures.[1]

One significant measure geared towards the prevention of corrupt activities bars entities convicted of corruption from participating in government contracts.[2] Another measure created a body called the Autoridad Nacional de Transparencia y Acceso a la Información Pública (National Authority for Transparency and Access to Public Information), which, as its name suggests, is meant to increase government transparency and public access to information.[3] Also included in the reforms is the widely-publicized and long-touted “civil death” law, which precludes government officials convicted of corruption from employment in the public sector.[4]  The reforms are also intended to strengthen the independence and autonomy of prosecuting authorities, augment corporate liability for acts of corruption, and foster a culture of reporting corruption-related offenses.[5]

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Chile Expects That Strong Foreign Investment Interest In Energy Sector Will Continue Despite Challenges

solar-energyThis month, the National Energy Commission of Chile (CNE) is scheduled to hold a new power auction, creating competition for the supply of 4.200 GWh of annual power – more than the originally planned 3.800 GWh.

Chile’s most recent power auction made global headline news this past August by attracting 84 participants and resulting in a world record low price of US$29.1/MWh for the Granja Solar project in Chile’s Tarapaca region. The average awarded price in that auction was $47.59/MWh – a reduction of 63 percent from the average price per MWh in 2013 and 40 percent from the average price in 2014.

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What Colombia’s Peace Agreement Means for Foreign Investment

Economy_Investment_And_Saving_ConceptOn October 2, 2016, the world appeared stunned to learn that the Colombian people voted NO to a referendum to approve the Peace Agreement negotiated and signed by the Colombian Government and the Revolutionary Armed Forces of Colombia (the FARC). What many people may not know is that on November 30, 2016, Colombia’s Congress ratified a modified version of the Peace Agreement without a referendum vote. But what does Colombia’s Peace Agreement mean for investors?

As Colombia’s Ambassador to the U.S., Juan Carlos Pinzón, commented: “Colombia is already a popular place for foreign investment in South America, and there is no doubt that the peace agreement will make it even more attractive by bringing greater stability along with increased consumer confidence and national consumption.” He further explained that both “the government and the private sector will make large investments in the development of rural areas” and that “with this increased development will come expanded opportunities for foreign investment in areas that do not exist today.” Those in the private sector seem to agree.

Joaquin Idoyaga, Vice President of Legal & Compliance at SURA Asset Management (the No. 1 Pension Management firm in Latin America, as well as a major player in the region´s savings and investment sectors), explained:

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Dominican Republic: Two Decades of Legal Change in Favor of Foreign Investment

For approximately 16 years now, the Dominican Republic has been implementing a continued legal reform to adjust its legal framework to international standards, specifically aiming to attract foreign investors.

The legal reform includes enactment of new laws and treaties, amendments to existing laws and treaties and the issuance of updated interpretations of local statutes by courts. Among the most important achievements of the legal reform are the following:

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Investing in Cuba: what next?

Since Cuba and the United States agreed to reestablish relations in December 2014, foreign investors have navigated an uncertain path in the Caribbean island. The Cuban Government has been implementing a new legal framework to lure foreign investors by enacting a new foreign investment law and establishing the Special Economic Development Zone of Mariel (free trade zone), among other measures. Nevertheless, Cuba continues to be one of the most challenging markets to invest in.

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NAFTA: Renegotiate or Withdraw?

There is much uncertainty and speculation surrounding President-Elect Trump’s nascent foreign and trade policies, particularly given his domestic-focused and trade skeptical campaign statements.  Though President-Elect Trump has not made specific comments about regional trade deals other than the North American Free Trade Agreement (NAFTA), his emphasis on returning jobs to the United States could impact hemispheric relations.

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Brazil’s Projeto Crescer – The objective is growth

In the midst of a high-profile corruption scandal that is changing the country, Brazil’s new government faces a challenging goal: to restore economic growth and regain foreign investors’ confidence. President Michel Temer (who replaced Dilma Rousseff after her impeachment) will serve until the next presidential election in 2018, and is working with a new economic team on measures to cut down on public expenditures, including tax, labor and social security reforms.

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