The FIFA Corruption scandal that broke out today is shameful for football organisations and the people behind them. A huge proportion of those indicted is from Latin America, which means that our region is once again on the covers of every newspaper in the world because of what a few people do wrong.
But is this a reflection of Latin America as a whole?
To a certain extent, yes. Corruption in Latin America is pervasive and it a considerable barrier to growth and development. I discuss this at length in my ebook as a key barrier to trade for exporters.
However, before Latin America, again, is pictured as a “package” by outside viewers (from football commentators through to exporters), let’s remember that there are 20 countries in Latin America and they are not all the same. The prevalence of corruption, the degree of corruption, and its tolerance by institutions and individuals vary significantly.
Estadio Centenario, Montevideo, Uruguay
That is why it hurts to have a Uruguayan on the black list. Not only because it’s my country, but because Uruguay ranks 21st (jointly with Chile) out of 175 countries for corruption according to Transparency International. That’s only 6 points behind the UK and better than how Spain, Portugal, the UAE, Czech Republic, Israel and France performed (and you aren’t ruling them out as export markets because of corruption, are you?).
Am I surprised about the Argentines and Brazilians indicted? Not really, don’t think anyone in South America is. If you’ve ever done business in either country, you will have had this discussion with your lawyers with regards to UK anti-bribery legislation. Argentina ranks 107th in the Transparency International Index, and Brazil 69th.
Then comes Central America. I feel the pain for Costa Rica, one of the only two full democracies in Latin America, according to The Economist Intelligence Unit (the second one is Uruguay), yet still ranked 47th by Transparency International. The rest of Central America comes as no surprise, with Nicaragua ranking 133st out of 175 countries for corruption. Venezuela is hardly shocking, too, with the South American nation almost at the bottom of the ranking.
So if you’re getting put off from exporting to Latin America by the FIFA Corruption scandal, think again. Not every country is the same and your experience of exporting to them will vary significantly. Make sure you know how to navigate the differences and how to prepare to deal with countries where corruption is “moderate to high”.
As we get ready for the Copa America, my belief in football institutions and their leaders continues to decrease sharply. However, my belief that international trade can improve people’s lives remains intact.
