If Sao Paolo and Santiago were people, I would sum them up this way- Santiago is like a friend you may meet occasionally- cordial and friendly but reserved and business-like. And Sao Paolo is that long-lost friend who always makes sure you have the best time when they are around. The food!!.. Oh, Chile was a wonderful city with wonderful food and warm and welcoming people. But the locals in Sao Paolo, on multiple occasions, went a step ahead in making us feel welcome and our visit, eventful. During the immersion, many of the companies we visited in Sao Paolo, scored extra points for hospitality- there were snacks and coffee or invitations to store openings.

In terms of culture, Chile is like a Spanish city with Italian food. The Spanish influence is very prominent through building architectures, language, names of shops etc. but there is very little trace of the native Chilean culture in Santiago. The first time I even interacted with the native Chilean culture was at the Los Dominicos market on our last day in Chile, which I thought was unfortunate because it could provide a big boost to Chile’s tourism industry, the same way the Incan cultural influence boosts Peru’s and the Mayan boosts Mexico’s. In contrast, Brazil is a mish-mash of this and that – like an interesting smoothie blend with exotic and indigenous ingredients. Rather than uprooting the local culture, when the Portuguese colonized Brazil, they intermingled with them. Over the years, more races arrived in Brazil and there was more mingling- leading to an increased acceptance of not only race but also LGBTQ rights. There is also an underlying casualness about the aesthetic of the city. In a lot of cities, especially in India, graffiti is viewed as a form of vandalism, but in Brazil, they are a form of art and there is a whole alley dedicated to this in Vila Magdalena.

On the business front, sustainability was the buzzword at both locations. Many companies we visited in both locations, spoke about sustainable development and practices, but the reasons for adopting it were varied. For example, Emiliana Vineyards adopted sustainability in the best interest of its farmers, Eggless started as a solution to the problem of restriction on homemade mayonnaise, and Tembici started a ride-sharing service, to promote an environment- friendly and a fun transportation alternative to motorized transport. In the case of Chile especially, it is a cause which is increasingly becoming relevant among young adults and consumers of brands. Thus, it was encouraging to see that sustainability is becoming more and more important to businesses across different countries albeit for different reasons and I hope for the sake of the future generations that more businesses draw inspiration from these companies in developing their own sustainability agenda.

I was quite fascinated to learn that Brazil’s initial growth, like that of the USA, was based on self- sustenance, and self-reliance. Then why did it not become a superpower like the USA? The Chicken-fly syndrome is probably one of the reasons- Brazil takes two steps forward and one step back- over and over again in history. Unlike the US, Brazil started developing its service industry much later. For a very long time, it relied solely on exports of meat, coffee, wood and other commodities, which made it susceptible to economic volatility. Rampant corruption has also reduced people’s trust in the system and the consequent economic fluctuations have led to emigration. As a result, Brazil’s working population is aging. The language may also be a huge barrier- within LATAM and outside of it. In LATAM, the Portuguese speaking Brazil is surrounded by Spanish speaking countries. Outside LATAM, many English-speaking nations do not comprehend Portuguese as well as they do Spanish. This may be a limitation in getting skilled labor to work in the country.

As in China and India, politics have a big impact on the economic stability in Chile and Brazil. A stable political environment is important for the growth of local businesses and foreign investments. Chile has been an economic frontrunner in Latin America thanks to stable governance, which switches only between two extreme types of governance- right wing and left wing. Chile is the most stable of the Latin American countries which is why it attracts most foreign investment despite its size and small population. On the other hand, Brazil’s governance is socialist, and the system has 35 different political parties coveting for governmental power. The government provides free education, healthcare, and pension support but the pension reforms and tax reforms which are currently underway will decide the future of the Brazilian economy. In the recent past, its economy has suffered a setback due to certain government reforms and corruption scandals. Setbacks like this often put a halt on Brazil’s growth. Once, deemed a front runner among the BRICS nations, Brazil seems to have lost the momentum today. The population is also aging as a result of the low availability of high skilled young working adults. Those that remain in Brazil, consequently are “overpaid” and experience accelerated career growth. We observed this trend among several speakers we met from Cielo and from Movile.

With economic growth reaching saturation points in the developed markets, companies and start-ups are looking at developing and emerging economies to set up business. As a business professional, when it comes to setting up a base in Latin America, some of the most important factors to consider are the political stability, volatility of the economy, access to resources and market size, among others. Favorable government support and access to funds to start and grow the business are plusses too. Chile is an attractive base in LATAM because of its favorable government initiatives for new businesses and access to the rest of LATAM. Chilean people are considered more educated, business inclined and economically well to do. They have more purchasing power relative to the rest of LATAM. Spanish is also the most commonly spoken language in South America and one of the most spoken languages in the US and Europe after English. Despite a smaller market, businesses can still have an opportunity to expand to neighboring LATAM countries. Brazil, even though it has the largest population in LATAM, is risky for businesses because of the volatile nature of its growth. The language barrier and the limited human resources may also be a deterrent to businesses looking for a base here. Even our host from Cielo believes that Brazil is past its peak. To businesses and start-ups looking for a large market with access to human resources, and favorable governmental policies on foreign investment, India and China may be a better option than both, Brazil and Chile. On a smaller scale, however, if they are looking at acquiring the South American market, Chile would be the better option over Brazil. Moreover, the stability of Chile is already attracting immigrants from other Latin American countries. If the increased governmental funding for start-ups and initiatives supporting businesses continues along the same trajectory, there may scope for more immigration of skilled labor, more businesses and diverse culture with a promise of great quality of life. There… Chile ticks all the boxes!