Latin America’s vast energy and mining wealth has long shaped political power, fueling extractive institutions that convert natural resource revenues into political influence. In countries such as Mexico, Argentina, Bolivia, and Venezuela, weak governance, fiscal dependence, and opaque state ownership have enabled systemic corruption and state capture.

This report introduces the State Capture Assessment Diagnostics (SCAD) methodology to the region, uncovering how elites and foreign actors exploit extractive rents, politicized regulation, and state-owned enterprises. Through case studies of PEMEX (Mexico), YPF (Argentina), YPFB (Bolivia), and PDVSA (Venezuela), the analysis shows how state capture has evolved from discretionary licensing to the full co-option of national oil companies as tools of political finance and patronage.

Without transparent ownership, independent oversight, or clear fiscal boundaries, these enterprises have become conduits for corruption, fiscal instability, and foreign interference. The findings underscore that state capture in strategic sectors is not merely an economic issue, but a fundamental threat to democratic resilience. Breaking these networks through OECD-aligned governance, transparency, and sustainability reforms is essential to restoring institutional integrity and safeguarding democracy in Latin America.