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Latin America Corruption Worsens, Trump Pauses FCPA
Corruption worsens in Brazil, Mexico and most countries in Latin America.
BY LATINVEX STAFF
Once again, Latin American corruption worsens, according to the latest Corruption Perceptions Index from Germany-based watchdog Transparency International.
Of 19 Latin American countries analyzed by Latinvex, 14 saw deteriorations, while only four saw improvements and one saw no change in their score.
The bad news comes just as US President Donald Trump is pausing enforcement of the Foreign Corrupt Practices Act (FCPA), a key tool in fighting corruption in Latin America and elsewhere. “It’s going to mean a lot more business for America,” he said when signing the executive order on Monday.
Transparency International said Trump’s order “diminishes – and could pave the way for completely eliminating – the crown jewel in the US’s fight against global corruption”.
IMPROVEMENTS
Uruguay, Costa Rica, the Dominican Republic and Guatemala were the only countries that improved their score on the Corruption Perceptions Index (CPI) from Transparency International. The first two by three points, while the Dominican Republic improved by one point and Guatemala by two points.
As a result, the Dominican Republic is now ranked among the seven most transparent countries in Latin America, up one spot compared to a year earlier.
Latin America Corruption | ||||
Ranked by transparency rank | ||||
LA Rk | Gl Rk | Country | Score | Ch |
1 | 13 | Uruguay | 76 | 3 |
2 | 32 | Chile | 63 | -3 |
3 | 42 | Costa Rica | 58 | 3 |
4 | 82 | Cuba | 41 | -1 |
5 | 92 | Colombia | 39 | -1 |
6 | 99 | Argentina | 37 | |
7 | 104 | Dom. Rep. | 36 | 1 |
8 | 107 | Brazil | 34 | -2 |
9 | 114 | Panama | 33 | -2 |
10 | 121 | Ecuador | 32 | -2 |
11 | 127 | Peru | 31 | -2 |
12 | 130 | El Salvador | 30 | -1 |
13 | 133 | Bolivia | 28 | -1 |
14 | 140 | Mexico | 26 | -5 |
15 | 146 | Guatemala | 25 | 2 |
16 | 149 | Paraguay | 24 | -4 |
17 | 154 | Honduras | 22 | -1 |
18 | 172 | Nicaragua | 14 | -3 |
19 | 178 | Venezuela | 10 | -3 |
Average | 34.7 | -1.1 | ||
LA Rk=Latin America rank | ||||
Gl Rk=Global rank | ||||
Ch: Change in score from 2023 index |
Sources: Transparency International, 2024 Corruption Perceptions Index; Latinvex (LatAm rank, changes)
Transparency points out that Uruguay and the Dominican Republic are among countries that have made most progress globally in recent years, improving by 6 and 8 points, respectively.
Uruguay once again ranks as the most transparent country in Latin America, followed by Chile and Costa Rica.
“With a score of 76, Uruguay stands out for strong institutions and environmental data management and effective citizen participation channels,” Transparency says. “Uruguayans’ trust in their institutions protected the country from the polarization and populism plaguing many in the region, allowing peaceful presidential elections with high levels of integrity.”
In Central America, Guatemala improved by two points on the CPI after years of significant decline.
“After suffering long-term state capture by a corrupt elite, the country opened citizen participation channels and began digitalizing public functions, to reduce opportunities for corruption,” Transparency says.
Similar actions have also proven effective in the Dominican Republic, which has improved by six points in the last four years.
“However, both countries still have a long way to go to tackle impunity,” Transparency warns. “Guatemala must urgently strengthen the independence of its judiciary and Public Ministry, which remain under the influence of corrupt networks. The Dominican Republic must accelerate current grand corruption investigations before they are dismissed for failing to meet legal deadlines.”
MEXICO AND BRAZIL
Mexico saw the worst deterioration, with its score declining five points to 26, while Brazil fell two points to 34.
“Mexico is on a downward swing, dropping five points in just one year as the judiciary failed to take action in corruption cases like Odebrecht and Segalmex, which involve human rights violations and environmental damage,” Transparency says. “Despite former president Andrés Manuel López Obrador’s promises to tackle corruption and return stolen assets to the people, his six-year term ended without any convictions or recovered assets.”
Chile, which remains the second-most transparent country in Latin America, saw a strong deterioration in the latest ranking.
Meanwhile, Venezuela remains the most corrupt country in Latin America and on the latest CPI ranks behind only Somalia and Sudan worldwide as the worst countries. Venezuela’s score fell 3 points to 10.
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