Narayan AmmachchiMany countries across Latin America and the Caribbean have strengthened their adherence to the rule of law — showing greater improvement than regions like the Middle East, North Africa, and even South Asia, according to the 2025 Rule of Law Index by the World Justice Project.
The Dominican Republic leads the regional turnaround, boosting its score by 2.1%, marking a standout performance globally.
The WJP ranks countries based on government openness, respect for fundamental rights, corruption levels and the justice system’s fairness.
The rule of law is not a luxury, it’s an economic engine. Economists have often argued that nations with stronger rule of law often enjoy 10–15% long-term higher GDP growth and lower poverty rates.
Among Latin American nations, Uruguay stands out as the only country matching the European Union’s standards.
“Uruguay’s rule of law is akin to many European countries, Spain in particular. Anyone visits Montevideo can notice it,” says Fergus Hodgson, Director at Econ Americas.
“Further, the small size is likely a benefit, enabling more accountable government and a robust democracy. A higher degree of economic diversification has also supported less corruption, since no one economic sector can capture the reins of power.”
Improved Governance in Brazil and Guatemala
Brazil and Guatemala also recorded notable gains this year, while the Dominican Republic stands out as the only country in the region to have achieved uninterrupted progress since 2020. For Brazil, this marks its first improvement in six years.
Uruguay ranks 24th on the index, followed by strong performers such as Costa Rica, Barbados, Chile, and Antigua and Barbuda. At the bottom lie Venezuela, Nicaragua, and Haiti.
El Salvador was expected to fare better, but its 2025 score of 0.43 still outperforms Mexico and its Central American peers, Guatemala and Honduras.
“There are serious problems in El Salvador with constitutional government and separation of powers,” Hodgson added.
“Mexico has become more of a one-party state in recent years, and that has occurred under the Morena banner.”
Technology offers a hope
The report pins much of the region’s weakness on fragile legal frameworks that allow elites to capture resources and political power. Only 35% of citizens in the WJP’s survey said they believe laws are applied fairly and consistently — down from 42% in 2019.
In Peru and Bolivia, public trust in the judiciary has plunged below 25%, revealing how deep institutional distrust runs.
Yet, there’s a silver lining — technology is driving a quiet revolution in justice systems.
In Brazil, the launch of e-courts in 2020 has cut case backlogs by 40% in São Paulo and enabled remote hearings, widening access to justice. Similarly, Chile’s Financial Analysis Unit uses AI to track money laundering in real time, recovering over $200 million in illicit funds since 2023.
A strong rule of law guarantees stable governance and faster economic growth. For global investors, predictable policies and legal certainty are priceless.
Peru’s 2024 revocation of mining permits amid political turmoil cost multinationals over $1 billion. Countries with stronger adherence to the rule of law tend to attract more foreign direct investment, thanks to their predictable legal systems.
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