Up to 15% of the gross domestic product (GDP) of Latin America is at risk if strategic investments in transport, energy, education and health infrastructures are not encouraged, warned the Vice President for Countries of the Inter-American Development Bank (IDB), the Ecuadorian Richard Martínez.
During the first day of the PPP Americas assembly, which will discuss new models of public-private partnership (PPP) for development for two days, the IDB leader said that the region needs “economic and social infrastructure as an engine for growth.”
He specifically spoke of the need to improve investments in education, health, transportation, water treatment plants or public lighting networks.
“They are not only key to improving the quality of life; is that, in addition, the costs of not investing ” in these areas “they are huge“, He said.
Martínez assured that the public sector needs the private sector to achieve these objectives, an argument that is being common in the celebration of this meeting sponsored by the IDB in Sao Paulo (Brazil), although most of the speakers, as was the case of the development bank vice president, participated remotely.
Organized by the IDB every two years, the meeting aims to review the factors that condition the financing of PPPs in the region and identify solutions, in addition to discussing financial, technical, legal and environmental aspects of infrastructures.
In Martínez’s opinion, it is especially important to reinforce the APP “after the tremendous effort”That has been done to confront the pandemic.
He thus recalled that the fiscal packages launched by the economies of the region to get out of the crisis have been equivalent to 8.5% of GDP and have raised fiscal deficits by an average of 5.3% of GDP.
In his opinion, the countries of the region should strengthen the regulatory frameworks for public-private partnerships and prepare “good projects” that are “socioeconomically viable”And sustainable, the expert remarked.
.
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
