For global companies and investors watching Venezuela closely, the capture of President Nicolás Maduro may appear to signal a long-awaited opportunity to reenter the country. But political change alone does not equate to a viable business environment, cautions Jerry Haar, clinical professor of international business at FIU Business.
“Curb your enthusiasm,” said Haar, warning that expectations of a rapid economic or institutional turnaround are misplaced.
Haar stressed that a leadership change should not be confused with a regime transformation. Decades of corruption, weak rule of law, failing infrastructure and capital flight have left Venezuela structurally ill-equipped to absorb meaningful foreign investment in the near term, he said. The country ranks 178 out of 180 nations on Transparency International’s Corruption Perceptions Index, a signal Haar described as…
