Workshop Report: The Role of Development Banks in Catalyzing South American Infrastructure in the 21st Century

March 2024 (31 pages)
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Download the Report PDF (Spanish Version)

While Asia continues to grow, South America is stagnant. According to some projections, the region could have negative growth this year. There are multiple reasons for this, but at least one of them is the lack of investment in infrastructure. Development bank support for infrastructure investments in South America could unlock unlimited growth and development opportunities for the region, the benefits of which would far exceed the initial costs. The lack of investment in infrastructure is holding the region back. The region’s annual investment in infrastructure in relation to gross domestic product (GDP) is only marginally higher than that of sub-Saharan Africa.

If the benefits are so great, why isn’t the region making the necessary investments in infrastructure?

This report is the result of an international workshop titled “The Role of Development Banks in Catalyzing the Infrastructure of South America in the 21st Century” which took place in Cali, Colombia, on May 16, 2023. The workshop was aimed at the exchange of ideas between professionals with experience and leadership in Latin America and other regions around the world. This made it possible to compare experiences and seek formulas that promote an even more active role for development banks in the expansion of infrastructure in South American countries. The workshop was a cooperative effort of the Development Bank of Latin America (CAF), the Frederick S. Pardee Center for the Study of the Long-Range Future at Boston University, and the Boston University Global Development Policy Center, with the support of the Pontificia Universidad Javeriana de Cali, and the Infrastructure Policy Council (CPI) of Chile.