The Inter-American Development Bank (IDB) has published the document “Reforms to foster a sustainable and inclusive infrastructure in Latin America and the Caribbean”, which highlights that the provision of infrastructure services in the region must improve its quality and be more accessible to all in an affordable way.

The countries in the region invest annually close to 1.8% of their regional GDP in infrastructure (average investment 2008-2019), a substantially lower % than that registered by other emerging economies. The authors affirm that increasing the rate of investment in infrastructure (up to 3.1% of its GDP by 2030) constitutes one of the most important development challenges that the region will face in the coming decades.

According to the report, the infrastructure sector needs to rethink, reform, update itself and requires urgent changes in its governance to increase its productivity and competitiveness with a renewed focus on social and environmental sustainability. The region needs a new sectoral architecture to ensure that service provision meets the demand in quantity and quality, while promoting efficient schemes to achieve the provision of services at affordable and equitable prices.

The work consists of an introduction and four main sections. First, it includes a description of the regional context and an empirical analysis of the infrastructure sector in Latin America and the Caribbean. Then, it presents the conceptual framework used to outline the reform agenda required in the infrastructure sector. Next, it analyzes the emerging trends that impact the speed and urgency of required reforms. Finally, the authors elaborate on a set of reforms and institutional changes, including policy reforms and the creation of new instruments, aimed at reactivating and increasing both investment in infrastructure and the quality of the services provided.