Show host Gene Tunny interviews Marcos Buscaglia, former head of the Latin America economics team at Bank of America Merrill Lynch, and author of the book "Beyond the ESG Portfolio, How Wall Street Can Help Democracies Survive." Buscaglia argues that, through their investment choices, many investors have inadvertently been supporting autocratic regimes, and he calls for a change in investment practices. Tune in to this thought-provoking episode to learn more about the ultimate impacts of our investments and how Wall Street can contribute to the survival of democracies.

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What’s covered in EP225

• Introduction to the episode. (0:03)
• Aligning investments with values and democratic growth. (4:32)
• Autocratic regimes, EU funding, and corruption in Hungary. (9:41)
• Investing in emerging markets while avoiding autocratic countries. (22:31)
• Economic sanctions, autocratic regimes, and investment strategies. (28:06)
• Economics, democracy, and the role of finance.

Takeaways

1. Investing in autocratic regimes can inadvertently support and strengthen those regimes.
2. ESG (environmental, social, governance) investing should also consider whether countries are democratic.
3. ESG metrics and indices currently do not prioritize democracy as a factor.
4. There are limited investment options that exclude autocratic countries, but investor demand can drive change in this area.
5. Sanctions can be an effective tool in limiting financial support to autocratic regimes.

Links relevant to the conversation

Marcos Buscaglia’s book: Beyond the ESG Portfolio: How Wall Street Can Help Democracies Survive

https://www.amazon.com/Beyond-ESG-Portfolio-Democracies-Survive/dp/1265115605

Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au. 

Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.