Which Latin American countries are best and which are worst when it comes to infrastructure?
BY CHRONICLE STAFF
Despite healthy economic growth in Latin America, local and foreign companies alike single out one area as deficient, especially compared with Asia: Infrastructure.
While Latin America continues to spend 2 to 3 percent of GDP on infrastructure, East Asian economies are committing 6 to 10 percent of GDP, according to Jordan Schwartz, lead economist for Sustainable Development in the Latin America and the Caribbean Region at the World Bank.
However, within Latin America there are big differences, as the Latin Infrastructure Index from Latin Business Chronicle shows. The index of 19 countries looks at four key categories and 24 subcategories of infrastructure using data from The World Bank, the World Economic Forum, the International Telecommunications Union and Computer Industry Almanac.
The four key categories are transport, technology, electricity and water. Transport covers 16 subcategories such as the cost, time and documents required to export and import containers; the quality of ports, airports, roads and railway and overall logistics performance (which, in turn, includes factors like customs efficiency, ease of arranging competitively priced shipments, competence and quality of logistical services, ability to track and trace consignments, timeliness of shipments in reaching destination within the scheduled or expected delivery time.)
Brazil and Mexico, the region’s top two economies, lag half a dozen of its neighbors in Latin America. Meanwhile, countries like Venezuela, Nicaragua and Haiti rank among the leading laggards.
Three countries stand out positively compared to the rest of Latin America: Panama, Chile and Uruguay.
Panama leads the Latin Infrastructure Index thanks to ...
Keywords: Brazil, Chile, Costa Rica, El Salvador, Mexico, Nicaragua, Panama, Uruguay, Venezuela
Latin Infrastructure Index 2010
Subindexes on Transport, Technology, Electricity and Water