Pension funds provide finance to infrastructure
Pension funds provide a good alternative to financing infrastructure development projects while strengthening local economies, was K&M Engineering’s opinion at the second CG/LA Global Infrastructure Leadership Forum.
K&M Engg mentioned Chile and Colombia as examples of mature economies with strong pension fund models that are investing in infrastructure, which also promotes the countries’ economic and social development.
Of the 180 countries analysed, Chile is the only one in the region to rank among the world’s 30 most competitive countries, according to a study released by the World Economic Forum. The study was based on perception, which is directly linked to infrastructure development. Latin American countries invest an average 2.5% of GDP in infrastructure, compared to the 30% invested by China.
The impact of the global crisis will be much less than it would have been eight years ago, but steps should still be taken to combat the situation and lessen its impact.