A review of recent infrastructure investment in Latin America and the role of private pension funds

Enestor Dos Santos, Diego José Torres and David Tuesta

No 1137, Working Papers from BBVA Bank, Economic Research Department

Abstract: Latin America is enjoying a period of extensive growth. If this trend is to continue into the coming years, the key insufficiencies that could limit total factor productivity will have to be dealt with in order to prevent bottlenecks. One of these insufficiencies is the infrastructure gap. The sources of finance required for infrastructure projects could include a more intensive use of the major resources accumulated by private pension funds. These funds have already been participating in a number of ways in financing projects of this kind through a variety of financial vehicles. Giving more scope to this source of finance means ensuring an appropriate framework, which includes: making substantial changes in the process of socioeconomic cost-benefit analysis; transparent, effective and efficient auctions; a more effective bureaucracy; laws and regulatory processes that ensure appropriate management of the risks of the project at all its stages; and regulation that adapts to the pension funds\' investment regime, which has a strict fiduciary role in favor of the savings of the pension savers who will receive pensions in their old age. This is the only way of ensuring a virtuous circle between infrastructure investment by pension funds and economic growth, which will lead to greater benefits for the country involved.

Keywords: infrastructure; private pensions; Pension Funds (search for similar items in EconPapers)
JEL-codes: G23 J32 O18 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2011-11
New Economics Papers: this item is included in nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.bbvaresearch.com/wp-content/uploads/mi ... 37_tcm348-281716.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bbv:wpaper:1137

Access Statistics for this paper

More papers in Working Papers from BBVA Bank, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by OSCAR DE LAS PENAS SANCHEZ-CARO ().