September 1, 2013
By Enrique GarcíaSound macroeconomic policies and the positive effects of high commodity prices over the past decade helped Latin America make important progress on a number of fronts: price stability, external balances, economic growth and poverty reduction.
Yet today, if the region wants to improve the lives of its citizens while becoming more relevant in the global economy, complacency is not an option.
The old comparative advantage approach, based on commodities and low wages, is no longer relevant. Governments must adopt a more sophisticated growth model based on efficiency, productivity, innovation, creativity and environmental sustainability.
Infrastructure, alongside education
If Latin America is to meet its demand for infrastructure, it must invest at least $250 billion annually over the coming years – double the amount of the last decade. This can only be done through multilateral cooperation