Groups » Latin America Law

Creeping expropriation in Latin America

• Alvaro Aguilar
  Sep 20 2009, 07:31 PM
  Creeping expropriation occurs when a governmental regulatory body changes property rights in the attempt to disrupt the enterprise to the point of non-functionality. This may be accomplished through the raising of taxes or fees charged the enterprise, the stiffening of regulation, or the institution of non-tariff barriers. http://www.gonzagajil.org/content/view/98/26/
  Expropriations were frequent in Latin America during the 1970s by totalitarian regimes, mostly with no or insufficient compensation. Pseudo-democratic regimes not only are abolishing term limits of Latin American constitutions but also have imposed regulations which penalize the operations of some private businesses. http://www.lloyds.com/News_Centre/Features_from_Lloyds/News_...
  How would you advise companies facing these forms of creeping expropriation?
  

  [Edited Sep 20 2009]

  
  

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