Despite progress in consolidating political stability and strengthening the rule of law, institutions remain weak in some countries, with widespread government inefficiency and lax public governance. Bolstering the strength of democratic institutions is also a continued challenge. This fuels frustration and social unrest in parts of the region, and supports the continued appeal of populist leaders. Moreover, continued high poverty rates and widespread income disparities continue to be a source of frustration for the most vulnerable segments of the population. Drug- and gang-related crime and violence are high, and inflict damage on businesses and citizens across the region. Dissatisfaction over the quality of governance and public services continues to trigger social discontent across the region, with negative implications for political stability. Significant progress on structural reforms needed to enhance productivity is unlikely in 2014-18, given fragmented legislatures and weak appetite for reform.

Fact sheet 6

Summary 7

Political outlook 9

Election watch 12

International relations 15

Economic forecast 19

Global outlook 19

Latin America 22

Business environment rankings 33

Data summary 37

Latin America and the Caribbean 37

Expanded Mercosur 38

Andean Community 39

Central America 40

Guide to the business rankings model 41

List of indicators in the business rankings model 42

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