Brazil Only Loses to Chile as the Best Place to Invest in LatAm

A gas pipeline in Brazil According to a report from the World Economic Forum meeting this week in the Chilean capital Santiago, Chile, Brazil, Colombia and Peru figure as the most attractive countries in Latin America for private investment in infrastructure. At the other end Venezuela, Bolivia and the Dominican Republic figure as the less attractive.

The report "Benchmarking National Attractiveness for Private Investment in Latin American Infrastructure", covering twelve countries in Latin America and the Caribbean assesses the main drivers of private investment in infrastructure projects for ports, airports, roads and electricity.

This is the first time that the World Economic Forum has developed an index specifically analyzing the investment environment for infrastructure.

The World Economic Forum on Latin America 2006 in São Paulo identified poor infrastructure as a major obstacle to the region's ability to compete globally and as one of the priority areas in which the World Economic Forum needed to explore alternatives and catalyze actions to overcome the current shortcomings.

The study features the Infrastructure Private Investment Attractiveness Index (IPIAI), a customized, methodological tool gauging the institutions, factors and policies making it attractive for private investors to invest in infrastructure projects. An assessment of infrastructure investment opportunities is also performed for each of the countries covered.

Infrastructure Private Investment Attractiveness Index

Rank Country Score

1 Chile 5.43
2 Brazil 4.40
3 Colombia 4.33
4 Peru 4.23
5 Mexico 4.04
6 Uruguay 4.02
7 El Salvador 3.97
8 Guatemala 3.64
9 Argentina 3.41
10 Venezuela 3.37
11 Bolivia 3.34
12 Dominican Republic 3.33

The eight pillars measured by the IPIAI are:

* Macroeconomic environment: economic stability, market size and growth prospects
* Legal framework (rule of law), including regulatory efficiency, public ethics and the effectiveness of dispute settlement procedures
* Political risk
* Ease of access to information
* Sophistication and development of the financial markets that enable infrastructure financing
* The country's track record on private investment in infrastructure over the past 15 years
* Relations between government and society, including society's willingness to pay for the services related to infrastructure
* Government readiness to deal with and ability to facilitate private investment in infrastructure

"The IPIAI provides country-specific diagnostics about relative national strengths and weaknesses in attracting private infrastructure investment," said Irene Mia, Senior Economist at the World Economic Forum's Global Competitiveness Network.

"From an investor's perspective, the IPIAI provides a customized toolkit for investment decisions and location choices in Latin America while it guides policy-makers in the choice of the best policies to foster their national attractiveness for private investment in infrastructure and in prioritizing sectors and measures," said Julio Estrada, Research Projects Manager for Latin America at the World Economic Forum.

Chile-Brazil Ties

Chile ranks among the ten major trade partners of Brazil. It is the seventh largest destination for Brazilian exports, and the eight largest imports source.

From 2002 to 2006, the trade flow between the two countries more than tripled, rising from US$ 2.1 billion to US$ 6.8 billion – always with a positive trade balance in favor of Brazil.

During the same period, Brazilian exports went up from US$ 1.46 billion to US$ 3.89 billion, a 266% increase. Imports saw an even greater increase: from US$ 648 million to US$ 2.9 billion (447%).

Industrialized, manufactured and semi-manufactured goods answer to 70% of the Brazilian export basket to Chile. In 2006, the main items exported were raw petroleum (29.35%) and cellular telephones (4.45%).

Automobile bodies, automobiles, chassis and tractors also accounted for a significant share – together, they answered to 14.8% of exports.

The most imported commodities by Brazil were products derived from copper, the main export item of Chile: 68.94%. The country also imports salmon (2.02%), wine (1.26%) and newsprint paper (0.76%).

Anba, ABr

Tags:

  • Show Comments (1)

  • ch.c.

    but look more closely at the numbers…..
    Chile is far more advanced, with a score of 5,43……and the next 5 countries are between 4,40 and 4.02.

    Thus comparing Chile against Brazil, is like comparing Brazil against the Dominican Republic !
    A world apart in each of the 2 comparisons !

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Doubles Investments in Railroads, But Problems Abound

Between 2001 and 2004 there was a significant increase in investments in Brazilian railroads, ...

Fear Campaign in Brazil Hurts Marina and Helps Reelection of President Rousseff

Brazilian President Dilma Rousseff effective television campaign seems to have eroded Marina Silva’s lead ...

Sweeping Changes in Brazil on How Oil Riches Are Spread

Brazil is set to unveil today, August 31st, a sweeping reform of regulations covering ...

Brazilian Equities Resume Rally

Latin American stocks advanced, as investors resumed a recent buying spree, after sending shares ...

Brazil’s Giovanna Shoes Discovers the Arab Market

The shoes manufacturer Sandálias Giovanna, from the southeastern Brazilian state of Minas Gerais, is ...

106 Cities from Around the World Meet in Brazil

The exchange of information and experiences between cities around the world is among the ...

The Brazilians and Their Intriguing Movies Are Back in New York

From July 17 through 31, New York's Museum of Modern Art (MoMA) will be ...

Brazil’s Petrobras to Invest US$ 3.6 Billion in Two Projects

Petrobras, Brazil’s state oil exploration and production company. will build a fertilizer factory in ...

A Quarter of Brazilian Executives Think Worst of World Crisis Is Over

All over the world, the number of executives who believe that the global economic ...

Father Vicenzo Ronchi, spiritual leader of Brazilian Catholic community in New York

How a New Priest and a Dying Woman Rallied New York’s Brazilian Community

Italian-born Father Vicenzo Ronchi is quite the character – he has a captivating personality, ...