The Center for International Private Enterprise (CIPE) brought together leading think tanks from Argentina, Bolivia, Colombia, El Salvador, and Guatemala for “LATAM Sin Barreras: A Regional Forum on Economic Freedoms,” held September 17 at the Bogotá Chamber of Commerce.

Washington, D.C., Sept. 25, 2026 (GLOBE NEWSWIRE) -- CIPE Launches Regional Dialogue to Identify Barriers to Economic Freedom in Latin America

WASHINGTON, D.C., September 25, 2026 — The Center for International Private Enterprise (CIPE) brought together leading think tanks from Argentina, Bolivia, Colombia, El Salvador, and Guatemala for “LATAM Sin Barreras: A Regional Forum on Economic Freedoms,” held September 17 at the Bogotá Chamber of Commerce. The forum examined a common question facing people and businesses across the region: How easy is it to work, start a business, produce, invest, and grow under existing rules?

“Economic freedom must be built on strong institutional foundations, including security and justice, a supportive business environment, and human capital. Singapore and South Korea offer compelling examples. In the mid-20th century, their average per capita incomes were at, or even below, levels observed in Latin America. Today, both are high-income economies and recognized examples of economic development,” said Dr. Norman Loayza, director of the World Bank’s Global Indicators Group, during his keynote address on economic freedom.

Research presented by the five countries at the forum shows that while regulatory barriers take different forms across countries, they can have similar effects on economic activity, particularly for small businesses and people working in the informal economy.

Building on these five country cases, LATAM Sin Barreras seeks to strengthen a regional network of experts, business associations, and think tanks focused on practical reforms. These efforts include engaging people directly affected by regulations, strengthening institutional capacity, simplifying procedures before digitizing them, making requirements and costs more predictable, assessing regulatory impacts, and creating permanent spaces for dialogue among governments, businesses, and other economic stakeholders.

The analysis also found that international indexes commonly used to measure economic freedom do not always capture the specific circumstances and realities of Latin American countries.

CIPE is therefore exploring the development of a new analytical and conceptual framework to study and measure economic freedoms in the region. “We need to expand this joint work on economic freedom to include other countries while continuing to explore how best to measure it. What is not measured is difficult to track and improve. We also need to strengthen collaboration among think tanks across the region to identify common barriers, develop policy solutions, and promote shared learning while taking into account the particularities of each country,” said Andrew Wilson, CIPE executive director.

Each partner provided their own unique perspective on the challenges and opportunities in driving greater economic freedom in their country. In Colombia, a study by the Centro de Estudios Manuel Ramírez (CEMR) found that more than 23,400 street vendors were registered/profiled in Bogotá between 2001 and 2024. This represents only around 1% of the city’s street vendors, meaning that only a small share had been connected to opportunities to increase their income, strengthen their businesses, access markets, or move toward formalization. The broader challenge extends beyond street vending: more than 1.3 million people in Bogotá continue to work informally, representing 32.6% of the city’s employed population as of May–July 2026.

In Bolivia, research by Fundación Milenio examined the relationship between informality, low productivity, and constraints on business growth. The research suggests that formalization should extend beyond compliance with regulatory obligations and translate into greater opportunities to access financing, markets, investment, and business expansion.

In El Salvador, the challenge is connecting trade openness with broader opportunities for businesses. Trade in goods and services increased from 49.6% of GDP in 1990 to 88.2% in 2025. Yet only 6.2% of formal businesses exported goods in 2022. Small businesses represented 86% of exporting firms but accounted for only 4% of total export value. Research by FUSADES points to reducing costs and lowering barriers to international trade as important steps toward enabling more businesses, particularly small firms, to participate in global markets.

In Guatemala, research by CIEN highlighted the gap between official processing times and the time businesses may experience in practice. In 2025, obtaining a sanitary license could take between five and eight months, despite an official timeframe of 15 to 20 business days. Such gaps can turn regulatory procedures intended to provide oversight into obstacles to economic activity.

In Argentina, research by CIPPEC identified 150 taxes and fees, with 82 of them levied at the municipal level. The study highlights not only the number of obligations but also how they are designed. Applying similar requirements to businesses of different sizes or risk levels can result in disproportionate costs for smaller businesses with more limited capacity.

Read the full article on CIPE’s website: https://www.cipe.org/blog/2026/09/24/excessive-regulation-and-bureaucracy-key-barriers-to-economic-freedom-in-latin-america/?preview=true

About CIPE 
The Center for International Private Enterprise (CIPE) works to strengthen democracy around the world through private enterprise and market-oriented reform. 

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Eve Angerosa
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