THE FINANCING SOUTH AMERICAN INFRASTRUCTURAL INTEGRATION: THE DIFFICULTIES OF ESTABLISHING A NEW REGIONAL FINANCIAL ARRANGEMENT

Abstract

The Initiative for the Integration of South American Regional Infrastructure (IIRSA) - in terms of financing - aimed to create innovative regional schemes in the realization of shared transport, energy and telecommunications projects. This article analyzes the financing of the agendas of priority projects executed and concluded between 2005-2018 and the participation of the Multilateral Development Institutions (MDI) as well as the public and private sectors. We identify the most relevant financial institutions and the main challenges facing fundraising in the region. The article argues that the idea of an innovative financing arrangement has been undermined by the high dependence on public investment; the permanence of a vicious cycle in which projects with assigned resources were more qualified to raise funding; the low participation of the IMDs; and the distance from the private sector.

Keywords

• iirsa
• financing
• infrastructure
• south america
• regional integration