Ethics: Latin America still quite corrupt.

Brazil is Latin America’s leader in corporate governance due to a strong private sector and recent laws for shareholder rights, although it is still weak in corruption, education and GDP per capita, among other areas. Chile scores best overall except under environmental performance and Argentina compensates weak economic data with strengths in educational and social performance. These are among the results of the 2006 edition of the annual study and ranking of Latin
America’s most sustainable nations, covering over 50 areas of mainly public sector performance released by the Madrid-based sustainability rating agency Management & Excellence and LatinFinance in Miami.

The ranking is the only one of its kind assessing economic, political, social, corruption, environmental and legal data of eight of Latin America’s largest countries.

Among the surprises is Argentina’s overall performance, passing Mexico despite its high debt. Argentina benefits not only from the best educational performance, but from good numbers in human rights, political liberties, life expectancy and quality of life.

Chile is best in most areas, with the lowest corruption, best economic data, lowest poverty levels and low human rights abuses, but highest pollution. Mexico slipped behind Argentina this year despite having the best economic numbers and ambitious reforms in corporate governance, due to weaknesses in education and corruption.

Brazil did not benefit very much from its strong private sector in this study of mainly public performance data. Its literacy and GDP per capita, for example, are among the lowest in the study.

Venezuela benefited in some of its key economic numbers from high oil prices and relatively low corruption perception while Colombia improved its performance in corruption, thus putting it in 5th place with Brazil.