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Infrastructure, factor for sustained economic development
1. Infrastructure, factor for sustained economic development
By: Florencia Bunge
A few weeks ago I read the report " The sustainable transport infrastructure and its
contribution to equality in Latin America and the Caribbean”, prepared by the Economic
Commission for Latin America and the Caribbean (ECLAC), showing how the
government measures that drive infrastructure development increases productivity.
During the V Investor Forum Latin America and China, held in Beijing in November
2013, it was note that investment in infrastructure in Latin American will be part of the
economic growth in the region. According to Jean Marc, head of the Department of
Infrastructure Development Bank (IDB), the region has great potential, with an
approximate figure of about $ 200,000 million in infrastructure investment in the
coming years.
Today we live in a continent where citizens increasingly demand more and better
services, and are willing to pay for them. We know that the development of public
infrastructure ensures the progress of our country and our continent. It is indisputable
that there is a lack of airports, subway stations , ports , among others. Governments
are beginning to realize that to grow their economies need to invest in the sector.
In this regard, recently, Alejandro Werner, Director of the Western Hemisphere
Department of the International Monetary Fund (IMF) said that " the key point in Latin
America is to implement a set of policies that allow countries to really reap the benefits
of entries capital, for example, more investment in infrastructure and social programs,
and minimize the negative consequences associated with the volatility of the financial
markets."
Therefore, public investment in infrastructure is a necessary condition for development.
It is necessary to address infrastructure initiatives in a global way, in order to have a
more efficient regulatory framework that promotes raising public intervention towards
more effective regulations that promote sustained economic development.
This article has been based on Florencia Bunge personal opinion.
www.florenciabunge.com