Sound Financial Policies

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Latin America has been able to resist many of the economics woes of the 2007-2010 recession with a little luck and some sounds financial policies. After the debt crisis of 1982, Latin America has thrown away the policies of protectionism and fiscal profligacy apitalistic qualities such as, flexible exchange rate, independent central banks, more responsible fiscal policies and tighter regulation of banks. Latin american citizens were the biggest benefactors of these changes in fiscal policy. Between 2002-2008 approximately 40 million of the 480 million citizens rose from the ranks of poverty and the income distribution became a bit less unequal.

Sources:
The Economist, September 11th 2010, Pg 3 … "Sound Financial Policies" will have a long-term positive impact on the this entity, which adds to its value. "Sound Financial Policies" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.