Guest blog: Is Latin America facing unusually high risks? An economic analysis and its consequences

Recent macroeconomic woes affecting the developed world are likely to spill over to emerging markets, especially more financially vulnerable and politically unstable Latin America, currently facing a resurgence in left-wing nationalistic movements. The Latin American left-wing has often aimed at increasing the dominance of state-owned enterprises in the economy, adopting stronger regulation and stringent control on foreign investment, all of which could lead to contract breaches and increase in litigation over disputes in regulated industries such as oil & gas, utilities, and mining.