Latin America needs better infrastructure

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Poor performance in infrastructure is stunting the region’s ability to grow, create jobs, alleviate poverty and compete with Asia.

The region is currently spending less than 2 percent of GDP on infrastructure, down from 3.7 percent of GDP in 1980-1985. But spending would need to reach 4 to 6 percent a year for infrastructure to catch up or keep up with countries that once trailed it, such as Korea and China.

Increased private investment is key, though stronger legal, regulatory and institutional frameworks are needed, and the increasing negative public sentiment must be addressed. The challenge will be considerable, but the potential impact is great:

Improving the region's infrastructure to the level of Korea could result in annual per capita growth gains of 1.4 to 1.8 percent of GDP, as well as reducing inequality by 10 to 20 percent.

Read the fact sheet, full report or more from the BBC. Or listen to an interview with one of the authors.

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