Washington, Dec 11 (EFE).- The president of the Inter-American Development Bank (IDB), Mauricio Claver-Carone, believes that public-private partnerships are a fundamental tool in the economic recovery from the pandemic in Latin America and the Caribbean.
Claver-Carone spoke at the close of the PPP Americas 2021 forum, which was held on Thursday and Friday in Sao Paulo (Brazil), in a speech he gave remotely from Washington.
The IDB president considered that “there are reasons for optimism” and highlighted that Latin America’s growth estimates for 2021 have been revised to 6 percent, while capital investments for the region are growing at an “unprecedented” pace.
“The next decade will not be lost, there will be many opportunities,” said Claver-Carone, who added that “there is no simple or single solution” to the economic crisis caused by the pandemic, which continues to grip the region despite progress in vaccination.
The IDB official sees that the ground to be made up requires not only the participation of the private sector, and reiterated that “innovation is key.”
Claver-Carrone explained that Latin America currently has an investment deficit in infrastructure of 2.5 percent of GDP across the region, some 150 billion dollars a year, “therefore demand exceeds the existing public resources.”
In this sense, he pointed out that “investing in infrastructure has a multiplier effect. Every dollar invested can add two dollars to GDP, helping to create more jobs, boosting competitiveness and providing more services to people.”
Claver-Carone noted that there is a great need for investment in social infrastructure and in sectors such as water and sanitation, hospitals, transportation and telecommunication services.
“In the last two days we have explored how to increase productivity, generate growth, promote digitalization and improve projects in all these areas,” he said. PPPs (public-private partnerships) are also essential to create an environmentally friendly economy.”
During the PPP Americas forum, which is held every two years and is now in its tenth edition, public-private partnership models were discussed to boost investment for sustainable development in Latin America.