Companies operating in Latin America and the Caribbean face a dynamic and increasingly complex political landscape. They can no longer rely on alliances with national government leaders in power or costly arbitration when things go wrong. Instead, we need better strategies to manage risk. These include social media actively listening to identify and avoid pressing challenges or respond more quickly. A community-centered approach that includes investing in projects with long-term benefits to ensure local support. Long-standing partnerships with local companies that understand market trends. Stronger contingency plans to ensure business continuity during political instability.
In October 2023, First Quantum, operator of one of the world’s largest open-pit copper mines, suffered a major setback when trying to negotiate a new contract with the Panamanian government. Outraged by the terms of the deal and concerned about environmental damage, citizens took to the streets to demand the mine’s closure, leading to protests that paralyzed the country.
