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Current Programming 2024
Countering Authoritarian Economic Coercion
With EV sales growing exponentially every year, lithium – the critical mineral that powers most electric cars’ batteries – has never been in more demand. The Lithium Triangle (Argentina, Bolivia, and Chile) boasts the highest concentration of lithium deposits in the world and has the potential to attract significant foreign capital. From 2024 – 2025, CIPE and Chile Transparente will investigate the regulatory landscape governing lithium extraction in Chile. This project will involve analyzing policy papers, engaging in public-private dialogues, and participating in international events to develop financially sustainable and responsible mining practices. Chile Transparente will focus on increasing awareness about the importance of transparent frameworks for managing foreign investment in the lithium industry. This initiative aims to advocate for a fair competitive environment by partnering with the private sector. The project is a multi-regional project that is designed to foster knowledge sharing between Latin American and European countries facing similar threats of economic coercion.
Previous Programing
Strengthening Environments for Constructive Capital
CIPE partnered with research and advocacy institutions in Colombia, Peru, Chile, and Argentina to analyze the impact of corrosive capital, raise awareness of governance challenges, and advocate for public policy solutions. In Chile, CIPE and its partner, Chile Transparente, drafted legislation that would require foreign and domestic corporations operating within Chile to disclose their final beneficiaries, including authoritarian regimes that are seeking to damage democratic institutions. After receiving inputs from Chile Transparente’s policy papers and investigations, in August 2023, the Government of Chile passed an amendment to the country’s public procurement law. If approved by the Constitutional Court, this amendment will create an official ultimate beneficial ownership registry of companies that procure public goods and services from the state.
Countering Corrosive Capital
Chilean institutions have kept the corrosive effects of authoritarian capital at bay with strong regulatory and legislative frameworks that promote transparency and accountability and respond to market demands. Regardless of these institutional strengths, funds from unknown sources still play a role in the Chilean economy. From 2021 – 2022, CIPE collaborated with Chilean think tank Fundación para el Progreso (FPP) to conduct a preliminary study of the presence and pervasiveness of corrosive capital in Chile. CIPE and FPP identified several areas where capital from authoritarian sources can pass through undetected into Chile. This project kicked-off CIPE’s long-term strategy to leverage corrosive capital partners around the world to address and raise awareness of the governance challenges posed by corrosive capital inflows. FPP engaged its expansive public and private sector networks to educate key stakeholders about the risks of accepting unregulated foreign direct investment and the importance of improving investment oversight.
Additional Resources
- Ultimate Beneficial Ownership Registry Resources
- Ultimate Beneficial Ownership Law in Chile – Flipbook
- Authoritarian Capital in Chile – Risks and Recommendations
- Corrosive Capital: The Chilean Case
Contacts
- For any questions or inquiries, please write to lac@cipe.org