The Felipe Montoro Jens Report on IDB Governors Meeting
The governors of the Inter-American Development Bank (IDB) held a recent meeting to discuss a variety of important issues. The most important of these issues was undoubtedly infrastructure. As such, infrastructure expert Felipe Montoro Jens was sent to cover the event and relay some of its content back to us.
The Brazilian Government Ministry of Planning, Development and Management informs us that last year, the IDB loaned Brazil about US $ 12.9 billion overall. As our expert reporter points out, that is 20% more than in 2016. So naturally, they are concerned at the lack of private infrastructure investment in the country. IDB President Luis Alberto Moreno does not believe that the country can achieve sufficient growth to repay those loans under the current conditions. Learn more about Felipe Montoro Jens at terra.com
Minister Dyogo Oliveira emphasized this point repeatedly when speaking to the assembled governors. He repeatedly returned to the theme of attracting more foreign investors. This is necessary, he says, in order for Brazil to join the rest of the world in what he calls “the fourth industrial revolution”. Indeed, modernization of Brazil’s economy has taken place, but some say it is too soon to advance it further. Minister Oliveira is obviously not among them.
In defense of the government, Oliveira also pointed out that Brazil has formed some very productive infrastructure partnerships with private entities for the purpose of funding the various projects that the country needs. These Public-Private Partnerships (PPP’s) are in keeping with the established practices of the region, as well as the rules of the IDB and other multinational groups. He said that this approach has been shown to be very effective, according to our expert reporter Mr. Jens.
While Spain invests a lot of money into Brazilian development, the authorities on both sides agree that investment is the answer. In the words of Minister Oliveira: “I propose that the IDB promote studies that point to more efficient solutions for project risk management and facilitate the leverage of private investments in the region,”