Governments did not know how to do faced with the almost permanent fiscal imbalances, so that public investment in infrastructure was almost imperceptible during a long period of time. Only with the privatization process that lived in the region in the 1990s, was a significant volume of investment in infrastructure, though it came from the private sector. The truth is that the extraordinary growth in the region could find tensions if it is not accompanied by a growth suited in the infrastructure of the countries. This is the claim, for example, that Peruvian entrepreneurs are bringing him to Alan Garcia. Peru is growing and strong, but it has deficiencies that may limit their growth (and indeed it is already doing so). An interesting fact about this aspect, is that says Lelio Balarezo Young, President of the Peruvian Chamber of construction (Capeco): the World Bank in a latest study that have just issue explains that Peruvians lose US $1.6 billion due to lack of infrastructure. We are going to be competitive when we eliminate such cost overruns that all the Peruvians have to pay. What says Young is the key to the importance that has adequate infrastructure to underpin economic growth.

For example, roads are inadequate as it is the case with the case of the Argentine countryside, it gets more expensive to transport production. If you need to suspend production for lack of electric power, we also have an increase in costs with the aggregate of which is difficult to comply with the commitments undertaken, which contracts begin to fall. This shows that not always the problem of the competitiveness of the Latin American economies passes exclusively through level that has the exchange rate at that time. A good infrastructure is also important to attract foreign investment. When investing, foreign companies take into account, among other factors of decision, everything related to the infrastructure of the country or region where they think investing. So also Young understands it when he says: the only way to become more competitive is that the State investment in public works such as roads, electrification, sanitation, hospitals, ports and airports when low public investment, low private investment; When State investment increases private employers invest more. It is true that infrastructure investment encourages the rest of private investment.

But public sector should not necessarily make all investment in infrastructure. A convenient context can be generated to make foreign investment attracted to sectors related to infrastructure. In this regard, Peru is currently in fourth place among recipients of foreign direct investment in the region. Related to this, the Minister of foreign relations Peru, Jose Antonio Garcia Belaunde announced important investments from Spain: there is a listing of possible Spanish investment in the coming years by up to $2 billion in different sectors. Spain is the main country where it comes from FDI towards Peru, with an accumulated US $4,900 million, mostly in the sectors of telecommunications, finance and energy. The sectors related to the infrastructure of Latin American countries, will surely begin to have a key role in the growth of these countries in the coming years. Surely they will also be a pole of attraction for foreign private investment. That is why those countries which can assure a good context for foreign investment, will be those who have greater possibilities of supporting the growth and competitiveness of their economies. You will find us again tomorrow, Horacio Pozzo Autor original and source of the article.