Much of Wall Street’s money is being invested in autocratic countries. Is it possible to change it? Yes, through reference indicators indexed to the quality of democracy, but public opinion must put pressure as happened with green bonds, experts say.
To explain this phenomenon, one example is enough: pension funds, for the most part, give money to asset managers who follow a series of benchmarks to decide where to put it, but they do not necessarily take into account the democracy factor. time to invest.
Indicators are the main way by which, in general, all of us at this moment finance an autocracy, even if we do not know that we are doing itsaid Marcos Buscaglia, founder of Alberdi Partners and former Wall Street analyst, during a debate this week in Washington organized by the Inter-American Dialogue, a think tank.
Philippe Bolopion, CEO of Tobam, an asset management company, agreed that
Much of Wall Street’s money is being invested in autocratic countries.
Western investors are arguably pouring billions of dollars into autocratic countries and essentially helping those countries’ authoritarian leaders survive and prosper, in some cases.he declared.
But markets are a living organism and as such they adapt to society. 20 years ago there was no talk of ‘green bonds’ and they did not arise because Wall Street proposed them, but because of social pressure.
Things are already changing and there are some exchange-traded assets (ETFs, index funds) that
are correct for democracysays Buscaglia.