Colombia`s infrastructure; one of Latin America`s worst

[Judi Lynn]

2. Interesting look at how this works:

It’s not just Brazil – Latin America’s infrastructure among the worst in the world
By Silvio Cascione
September 27, 2013

Brazil’s creaky network of roads and rails is once again in the spotlight after a much-awaited highway concession auction failed to draw any bids from private investors earlier this month.

The concession of the BR-262 highway was part of President Dilma Rousseff’s government 43 billion reais program to revamp the country’s roads. The stakes are high: without serious investment in infrastructure, Brazil risks a lost decade of mediocre economic growth — which would likely halt its recent progress in reducing economic inequality. A credit downgrade might be in the pipeline as well.

It’s easy to see why infrastructure is so key to Brazil with the following graphic prepared by HSBC with data by the World Economic Forum, which shows how far it lags behing other economies in that matter.



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Rousseff knows that, and tried to court Wall Street investors this week to make sure the other upcoming auctions don’t fail like the first one. If she and other Latin American leaders succeed in luring private investors, the best way to take direct advantage is not through shares of road operators, but rather by buying construction material suppliers, HSBC economists led by Ben Laidler said in their research note.

More:
http://blogs.reuters.com/macroscope/2013/09/27/its-not-just-brazil-latin-americas-infrastructure-among-the-worst-in-the-world/