Venezuela Among Worst Countries in the World for Business

November 4

President Hugo Chávez’s expropriation binges of domestic and international companies alike are among the factors destroying Venezuela’s reputation as a place to do business, according to a study from the World Bank.

The 2011 Doing Business Report ranks Venezuela 172nd out of 183 countries sampled in terms of places to do business, behind Iraq (#166) and Afghanistan (#167). It also represents a two-spot drop from last year’s rankings.

The World Bank’s ranking puts Venezuela last among all North and South American countries. Factoring into Venezuela’s standing were its poor record on granting credit (#176) and protecting investors (#179).

The World Bank has been routinely critical of President Chávez’s economic policies, having predicted a 2% GDP drop in 2011 while all but two other Latin American countries were forecasted to see economic growth.