Nations with widespread corruption and weak rule of law tend to do a poor job fostering innovation and new business creation – and the Northern Triangle countries of Honduras, Guatemala, and El Salvador are no exceptions.
Nations with widespread corruption and weak rule of law tend to do a poor job fostering innovation and new business creation – and the Northern Triangle countries of Honduras, Guatemala, and El Salvador are no exceptions. In the region, entrenched elites and even criminal organizations are able to evade competition and prosecution by taking advantage of corrupt systems.
The result is to deter investment, leaving the residents of those countries with limited opportunities and a climate of insecurity and violence. These factors make the dangerous trek to the U.S.-Mexico border in search of better opportunities necessary in search of better lives and livelihoods.
Using data from the George W. Bush Institute-SMU Economic Growth Initiative’s Global Competitiveness Scorecard, we’ve examined the effects of crime, corruption, and weak institutions on the economic outcomes of El Salvador, Guatemala, and Honduras. The Scorecard’s Legal System and Property Rights indicator, which measures the effectiveness and integrity of a country’s government, demonstrates that all three countries score in the bottom quintile.
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