It’s human nature to want to help others, especially when it comes to underdeveloped countries which either don’t have infrastructure or said infrastructure isn’t fully established. Unfortunately, things tend to get muddled in the actual implementation of any said aid, particularly the financial management side of things, especially on the topic of who provides funding and where it goes.
The governors of the Inter-American Development Bank recently held a meeting in Mendoza, Argentina to discuss the reasoning and consequences of increasing private investments toward infrastructure projects in Brazil. The Minister Of Planning, Development and Management, DyogoOliveria, defended the increase of private investment, stressing the need for financial guarantee mechanisms not subject to government regulation and leverage private investments for infrastructure projects in Latin America as well as more efficient solutions for project risk management. Follow Montoro Jens on Twitter.
Luis Caputo, Argentina’s finance minister and chairman of the Bank’s Board Of Governors seems to agree and encourages the proposal for the IDB should focus efforts on leveraging private investment in the region. Garrido, The Secretary of State for Economy and Business Support of Spain, also agrees, highlighting the dynamism of the markets and highlighting Brazil as the primary country for Spanish investment.
Bottom line, being subjected to a constantly fluctuating market can lead to lack of funding, delays, mismanagement and inefficiency. Minister Oliveria stresses this necessity in the face of the Industry 4.0 revolution, that building roads, water and sanitation requires a more modern infrastructure to promote and maintain the progress of the revolution. The simple fact is that current investments are below what is necessary to fund these major alterations to infrastructure and connectivity between other countries. The Brazilian government is also aligned with the guidelines and actions of the IDB and similar agencies.
The decision seems unanimous. Brazil can’t continue to develop and improve without the financial security and stability of private investments. Other sources are simply too unreliable and allowing another country to stake a claim is a necessary evil but also holds the potential to develop a more personal symbiotic relationship, because unity is far more effective than individualism, and only through these partnerships will things continue to improve and push on for a better tomorrow. Visit: http://www.felipemontorojens.com.br/