FINAL THOUGHTS Trends regarding financing impacts
Some reflections can be derived from the preceding analysis about the landscape of financing infrastructure in the LAC region, and the main actors involved, in order to develop potential advocacy strategies for the Latin American civil society. It is quite clear that the financing infrastructure architecture in the region is a complex matter that requires defining lines of action and advocacy strategies articulated with specific short-, medium- and long-term scopes at different levels (local, national, and regional). In general terms, we can see a growing involvement and level of influence in the region of certain national and international development institutions, such as the BNDES, CAF, CBD, and Chinese FDI. In recent years, these actors have gained ground as opposed to institutions such as the World Bank, IFC and IDB. However, the latter are still relevant in terms of the funding for infrastructure in the region, particularly after the financial crisis of 2008. LAC is still the region that receives the highest volume of funds from these institutions, and some countries, such as Brazil, Mexico, Argentina, and Colombia, are among the top borrowers from both the WB and the IFC. The existence of different sources of funding requires a comprehensive understanding of both the context and the financial framework in the region. It is also necessary to develop constant and comprehensive
monitoring strategies in order to influence macrolevel dynamics in the field of infrastructure financing, through an understanding of regional and global processes, such as the G-20, the BRICS coalition, the creation of the Development Agenda Post 2015 and the COSIPLAN processes in the UNASUR, to mention just a few examples. This understanding will allow the articulation of strategies at a regional level to influence trends in the countries within the region and in particular local processes. A first impact trend is the relaxation of the financing sources’ institutional frameworks and environmental regulations. The proliferation of financing sources for the region has resulted in a competition among diverse institutions to grant loans and be involved in the countries, as these are ultimately banking institutions and their priority is to move and increase their capital. This happens in different ways; the BNDES, for example, participates through Brazilian transnational companies, as was described above. This competition represents a potential trend towards a weakening of the regulatory frameworks that currently govern the provision of funds by some institutions and help prevent and mitigate impacts (these have yet to incorporate a human rights discourse). Thus, the WB is in the process of relaxing its social and environmental policies, while a considerable share of its loan portfolio is not subject to these policies.
Overview of Infrastructure Financing in Latin America
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