Many Latin American countries have adopted economic
reforms in the past 15 years, but their financial systems
remain small.
The region's lack of financial depth has significant
consequences for the economy because small and
midsize businesses find it hard to raise money.
The situation may improve. Since 2002 Latin America's
stock of financial assets has grown by 20 percent
annually, up from just 5 percent from 1995 to 2002.
Foreign investors are starting to take notice; inflows
to stock markets and private-equity investments rose
in 2005.
Is Latin America on the verge of a breakthrough? That
depends on whether policy makers go on reducing
the level of public debt while further reforming the
financial and legal systems. Read more on the McKinsey Quarterly site
Five priorities for Brazil's economy To enter the ranks of the world's leading economies, Brazil must remove entrenched barriers to productivity. Read more
Assessing Brazil's offshoring prospects Brazil must address labor shortcomings and other issues if it hopes to capitalize on its considerable potential as an offshoring destination. Read more
How Chile can win from offshoring The country has already attracted the attention of multinational companies; now it must address its shortcomings to reach its offshoring potential. Read more
Developing Mexico's offshoring opportunity To take advantage of the growing global market for offshored services, the country must do more to improve the suitability of its workforce. Read more
