Infrastructure Projects expert Felipe Montoro Jens defended private investment in South America at the Special Meeting of Governors of the Inter-American Development Bank on March 24. His stance is that private investment is the way to make the minimum investments required for increased country connectivity.
South America faces several issues with the industrial revolution, one of them being road development and the ability to travel between South American countries. Furthermore, South America has the ability to attract outside investment from countries like Spain, which is focusing on Brazil as an investment hub right now. Another main issue is the social pressures of the fourth wave of the industrial revolution, such as gender equity and ecological issues in construction. Visit infomoney.com to learn more.
Felipe Montoro Jens reports that the President of the Inter-American Development Bank, Luis Alberto Moreno, agrees that the funding isn’t currently there to support things like roads between South American countries. But some hope lies in the Brazilian market, which has more private investment. The Brazilian market has been picking up due to loans from the IDB and because of Brazil’s Public-Private Partnership Partnerships for public works, or PPP’s. Jens reports that loans from the IDB to projects in Brazil last year were up 20% from 2016 for a total of about US $12.9 billion. The amount of PPP investments totaled $360 billion for the last decade throughout South America and the Caribbean. That puts Brazil at a healthy chunk of total development investment.
Moreno is in agreement with Jens that private investment is the way to go to shore up infrastructure in South America. He notes that the IDB has changed its policies to meet more modern social demands like gender equal pay and ecological initiatives. But some projects are still unable to utilize private money in South American development, despite the increase in Public-Private Partnership projects. Such private investment was put forth at the March 24 meeting as a solution for infrastructure problems and development issues, as opposed to public funding.
Felipe Moreno Jens was a large proponent of this private funding, saying that it meets the Inter-American Development Bank initiatives, but he wasn’t alone in his opinion.