There were probably 30,000 public buses, minibuses, and vans in Mexico City. Though, in 2015, no one knew for certain since no comprehensive schedule existed. This was why el Laboratorio para la Ciudad (or LabCDMX) had spawned an effort to generate a map of the labyrinth system that provided an estimated 14 million rides a day. Gabriella Gómez-Mont, the lab’s founder and director, had led her team in a project to crowdsource the routes from volunteer riders in what came to be known as Mapatón CDMX. After four pilots and a two-week “mapping marathon” later, she wondered exactly what to make of the lab’s 50th experiment? Was Mapatón successful?
In 2016, Bruce Wayne, Managing Director of Energy Finance Corporation (“EFC”), was refining the Investment/Credit Committee materials for the development of up to 10 power generating plants in Argentina. As a subsidiary of the much larger International Conglomerate Corporation (“ICC”), EFC had to convince ICC’s Investment/Credit Committee to provide capital despite the many risks associated with investing in Argentina.
This working paper provides a new perspective on how businesses have responded to political risk in South Asia and Latin America over the last half century. The existing business history literature on political risk is focused on the experiences of Western multinationals in the 20th century, especially in Nazi Germany and the post-colonial developing world. This working paper is instead focused on perceptions of political risk by domestic business leaders active in Latin America and South Asia since the 1970s. Employing data from the Creating Emerging Markets oral history database developed at the Harvard Business School, the working paper identifies five major sources of political risk: macroeconomic and policy turbulence, excessive bureaucracy, political instability, corruption, and violence. Employing NVivo coding, marked regional differences were identified. Macroeconomic and policy turbulence was the biggest perceived source of risk in Latin America. Excessive bureaucracy was the biggest source of perceived risk in South Asia. There were regional differences also in how leaders in different regions responded to the same risk. In both regions business leaders reported having to dedicate significant time to navigating government regulations, but interviewees in South Asia frequently reported attempting to steer clear from highly regulated industries, while many interviewees in Latin America discussed how they adapted to heavier government oversight by forming closer ties or working relationships with incumbent administrations.
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Maria Fernanda Miguel joined Harvard Business School in 2013 as Director for the Latin America Research Center (LARC). Her responsibilities include leading research activities for Spanish speaking countries in LATAM, and providing programmatic support to different areas of HBS including admissions, executive education, and immersion programs. Fernanda is based in Buenos Aires, Argentina.
Prior to join Harvard Business School, Fernanda was a Senior Director and Leader for LATAM Business Development at Merck and senior consultant at McKinsey & Co., serving as global Practice Manager for the Business Technology Office Health Care Practice.
Fernanda holds a degree in economics from the Argentine Catholic University, an MBA from Harvard Business School, and a Master of Research from University of Bath.
Fernanda has been very active in non-profit activities, including fund rising at the Fundación Acción Hemato-oncologica – Argentine National Academy of Medicine, and acting as advisor to the Board of Directors of the Hospital Garrahan.
Priscilla Zogbi is the Director of the Latin American Research Center in São Paulo. Priscilla focuses on the School’s work in Brazil, developing research opportunities for faculty and relationships for other educational efforts such as the MBA curricular innovation and immersion programs.
Priscilla has over 17 years’ experience in marketing and product development. Before joining HBS she was a consultant to private equity and venture capital firms interested in the region. Prior to that she was a Global and a Regional Marketing Director at Avon Products, and has held managerial positions in the US and Brazil with Bath & Body Works, General Mills, Johnson & Johnson and Reckitt Benckiser.