World Bank study estimated that the region would have to invest $100 billion a year over the next two decades for its infrastructure to reach a standard similar to South Korea’s — a formidable challenge for a region prone to economic boom-and-bust cycles. In Latin America and in South America in particular, is that there’s been a sharp fall in public investment. With some countries forcing private investors to renegotiate contracts, “private investment has fallen, and public sector investment up until now hasn’t had the capacity to recover what was lost. Inter-American Development Bank (IADB) approved financing for 21 projects totaling $1.8 billion to improve infrastructure in the region. Sixteen were destined for government-financed projects and five with private investment.
Latin America has traditionally had a big lead with infrastructure. Latin America has always been the second world as opposed to the third world. But now that lead has diminished dramatically. About 55 percent of private sector companies in Latin America say infrastructure is a problem, only about 18 percent in East Asia. So, I think there’s an urgent need to address infrastructure. The region’s need for an infrastructure upgrade has drawn the attention of some investors. In South America, the biggest infrastructure needs are in roads, bridges, waterways and ports to help lower the cost of exporting the region’s abundant natural resources. Analysts say there are also potentially lucrative investment opportunities in telecommunications, energy projects and natural gas transport.