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backLATINtalk May, 2011

Working in Latin America Today: a Diverse Landscape of Opportunity and Risk

Latin America is a burgeoning region of international business activity, and like any area of opportunity, it often is accompanied by an element of risk. Weisz offers a risk profile of the Latin American region, focusing on security concerns for expatriates and travelers headed to the area in an attempt to aid them and their employers to understand the unique security considerations of several popular Latin American destinations.

Latin America continues to present rich opportunities for the international business community, as illustrated by recent data from the U.S. Chamber of Commerce that lists countries such as Brazil, Argentina, and Ecuador among the fastest-rising destinations for U.S.-based business travelers. Things are looking up for many Latin American countries, the majority of which fared comparatively well in the wake of the global financial crisis and have achieved relative stability in the face of political unrest that has long plagued the region. American business travelers and expatriates relocating to Latin America for work should be encouraged to learn that in most cases, the region is calm and conducive to a pleasant and profitable stay.

However, as with any assignment abroad, living and working outside one’s home country presents certain risks that companies often address through their duty of care plans. Paramount among these risks within Latin America is the security threat posed by both common and organized crime that exists in a variety of forms across the region. Besides Costa Rica, Panama, and Chile, countries throughout Latin America are dogged by a prevalence of crime, dictating that companies sending staff to this area should proactively engage with employees to educate, plan, and prepare for worst-case scenarios.

Detailed and up-to-date information about the current safety environments at each destination, along with tips to mitigate risks, is a key ingredient to add to your employee’s pre-deployment “kit.” Preparing your expatriates and their families enables them to adapt to their new environment more easily. The following profiles illustrate the unique security considerations pertaining to several popular Latin American destinations.

Mexico

Mexico’s drug war has been covered extensively by international media outlets with photos of tortured murder victims and reports of increasingly brazen cartel attacks tarnishing the country’s image. Yet, quite often the news is often presented with little context, creating a false sense among onlookers that the whole country is deep in turmoil.

This is far from the truth. In fact, most of the country continues to present a relatively benign security environment for business travelers and expatriates. The fact that the conflict has taken some 30,000 lives in the past three years cannot and should not be taken lightly, but employees destined for Mexico can benefit greatly by understanding the nuances and uneven geographic distribution of the violence.

The reality is that the vast majority of the victims are individuals directly involved in the drug trade, not foreigners who are in Mexico for unrelated purposes; furthermore, the likelihood of getting caught in the crossfire is extremely low. Much of the violence is concentrated in U.S.-Mexico border regions, leaving large swaths of the country’s interior relatively unaffected. Even for those working near the frontier, the most salient risks continue to stem from common street crime: muggings, armed robberies of small businesses, and carjackings, which often target luxury SUVs.

Mexico is unlikely to succumb to a collapse of institutions and public order, despite the opinion of some who believe that the country is beginning to resemble a “failed state.” It is more likely that the violence will be contained, though the process of subduing the cartels may take several years. Regardless, it is common crime and extortion, not drug violence, which continue to present the most likely threat to the business traveler or expatriate.

Though these issues have persisted in Mexico for decades, in recent years authorities have become so taxed by the need to contain cartel-led violence that addressing these less-deadly (but still serious) crimes has been reprioritized. This reality necessitates increased vigilance among all travelers and expatriates who visit the countries major cities, including Mexico City, Monterrey, and Guadalajara.

Central America

In Central America—the Latin American sub-region comprised of Guatemala, Honduras, and El Salvador, among other counties—gang membership and criminality is rising as a by-product of heightened unemployment rates. As migrant laborers previously employed abroad (primarily in the United States) are let go, some return back to their home countries where the sudden influx of jobless nationals has resulted in increased activity among the infamous “Mara” gangs.

Crimes committed by these gangs tend to center around street-level drug peddling and human smuggling. Any traveler to the area should be acutely aware of the threat of gang activity, particularly when using public transportation.

Passengers of public buses and taxis have been targeted by robbers who hold their victims up for money, a practice that sometimes involves gratuitous violence. As a result, business travelers are advised to arrange private transportation in unmarked vehicles in advance of any journey to Central American countries.

To read entire article, please click here.

Source: Worldwide ERC - GAI

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