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As Latin America and the Caribbean begins to emerge from six years of economic slowdown, including two of recession, it is essential to find ways to nurture and strengthen this budding recovery. Economic growth was the central factor behind the region’s striking social and economic achievements of the last decade, when Latin America cut extreme poverty by half, significantly reduced inequality, and greatly expanded the middle class. But we no longer enjoy the conditions that enabled all this. The drop in the prices of commodities and the slowdown in key economies, such as China, hit the region hard. In today’s very different scenario, it is crucial to rebuild the foundations for economic recovery. Infrastructure stands out as one of the main enablers to enhance productivity and sustainably boost our domestic growth engines. It is clear that Latin America and the Caribbean does not have the infrastructure it needs or deserves, and the accomplishments of the past decade make this contrast even starker. Low-quality roads keep people from jobs and public services and increase the costs of small farms and exporters alike, making them less able to compete. Over 100 million people, almost a fifth of the population, do not have access to improved sanitation, and two-thirds of sewage goes untreated, spreading disease and degrading our rivers. In 2012 alone, this caused Latin Americans to lose a combined 900,000 years of life because of disability, ill health or death. At the same time, much of our current infrastructure is not prepared for trends such as rapid urbanisation, or to face the extreme weather events associated with climate change, that result in tragic loss of life and massive rebuilding costs. The recent floods in Peru and Colombia caused over 300 deaths, and swept away more than 3,000 km of roads and almost 300 bridges in Peru alone, isolating scores of villages. The poor and vulnerable bear the brunt of these impacts. They are also the first to suffer when infrastructure is simply not present, having no option but to resort to costly alternatives such as water trucks and electrical generators. Traditionally, the region has tried to solve this by looking for more resources. There has long been talk about the investment gap in infrastructure — the difference between what we have and what is needed — with estimates around US$180 billion per year. However, this hides a very complex and varied reality across the region. While the region, as a whole, invests less than three per cent of GDP in infrastructure, compared to East Asia’s over seven per cent, some countries invest more than four per cent. In addition, significant increases in public investment are not realistic in today’s tight fiscal context. Two recent World Bank reports reveal that, rather than necessarily spending more, a lot can be done by spending better and by ensuring that the full potential of the private sector is tapped. The debate must shift from how much finance the region needs, and how to raise it, to what actually needs to be done, and finding the most efficient ways of achieving it. Addressing the inefficiencies will require interventions at the sectoral level as well as more systemic ones, including tackling lack of institutional capacity for planning, regulatory uncertainty, as well as budgeting and implementation issues.  

As Latin America adapts to the downturn in commodity prices, policymakers are turning to the surest path to sustainable, lasting growth: innovation. “When businesses innovate, productivity increases and economies become more competitive,” says Marialisa Motta, manager of the Trade and Competitiveness practice in Latin America and the Caribbean. Many Latin American countries have policies to encourage innovation, but most are less efficient or effective than they could be. The World Bank Group is helping governments take stock of their programs and improve them. The goal, says Senior Private Sector Specialist Alberto Criscuolo, is to see “what is the bang for the buck? Is the public expenditure on innovation consistent with the policy priorities on innovation? How effective are the programs on innovation? Are there overlaps between agencies and ministries? What can we learn from the implementation of existing programs?” These reviews of science, technology, and innovation spending are being done with World Bank Group support in Peru, Colombia, and Chile, among others. Often, Criscuolo says, there’s a “gap between what industry needs and what universities are researching. The two sides don’t talk to each other.” The World Bank Group assessments can help identify which areas of innovation are in high demand from industry, and encourage funding of that research.Evaluating the Mix In Chile, the World Bank Group evaluated the quality of the innovation and entrepreneurship policy mix and worked with two government agencies to identify good practices and weaknesses in design and implementation practices. The results were used to inform the current restructuring of innovation instruments. In Colombia, the World Bank Group evaluated more than 120 policy instruments, measuring the effectiveness of the policy mix, the degree of redundancies, and gaps. Now the Bank Group is helping the government design a national innovation strategy by recommending good practices on innovation instruments, such as better-defined tax incentives for research and development. “Fewer than 20 companies in the whole country were benefiting from the tax breaks, mostly large mineral or energy companies,” says Lead Economist Leonardo Iacovone, who worked on the Colombia assessment, after which the country changed its system. Iacovone is now co-leading a $600 million loan to Colombia, approved in March 2017, whose objectives include strengthening innovation policies.Management as Well as Technology Innovation is about management as much as technology, Iacovone points out. “A company that’s able to innovate is one that’s able to learn. The way you get organized and managed is crucial in the way you’re able to learn: Setting and monitoring targets. Linking human resources processes and incentives to targets. Getting feedback from workers on how to continuously improve.” In Brazil as well, there is much room to improve how firms are managed, says Lead Economist Mark Dutz. Surveys show that 18% of firms are very badly managed, compared to 11% in Mexico, 6% in China, and 2% in the United States, according to the World Management Survey. But technology is important too. Though some fear that adopting new technologies will kill jobs, Dutz says, “Technology adoption by firms can actually be inclusive, creating more and better jobs not just for highly skilled workers, but also lower-skilled workers – provided there is enough output expansion.” Traditionally, Latin American economies, particularly Brazil, have been relatively closed to foreign trade, giving companies little incentive to innovate and remain competitive in global markets – and leading to higher prices for consumers. But breaking down those barriers means that companies can expand beyond their traditional domestic markets. “They need to think of the world as their oyster,” Dutz says.

José Quishpe represents 400 farmers of the Alpaca Project of Cayambe Canton, in the Ecuadorian province of Pichincha.  They plant corn (grain), ulluco (tuber), maize, barley, wheat, potato, quinoa and other crops on their 1,200 hectares. Among the many daily challenges they face are soil erosion and crop losses. They currently use a flood irrigation system, which does not allow them to adequately distribute the resource among all members. This unsustainable water usage affects the population’s quality of life. This is the context of the Sustainable Family Farming Modernization Project, which promotes more efficient water usage among farmers through localized irrigation infrastructure and training. They project also provides technical support to strengthen the organization of the association, develop environmental and agricultural practices, as well as support marketing of their production. In Ecuador, just 13.8% of farmland has localized irrigation. This technology enables smallholder farmers to optimize water usage and efficiently supplies crops with enough water for their development, reducing waste of this valuable and increasingly scarce resource. Like José, many farmers have participated in the meetings organized by the Ministry of Agriculture, Livestock, Fishery and Fishing (MAGAP) to inform them on the project and invite them to submit their applications to obtain financing for the installation of localized irrigation systems. “We are very enthusiastic about the possibility of submitting a proposal that can be selected and financed. This irrigation method not only optimizes water usage, but also our time. When we don’t use the modern irrigation technologies, we have to get up at night or at dawn to manually carry out this activity,” said José Quishpe. The initial works of the pilot sub-projects are now being implemented in the provinces of Manabí, Bolívar, Los Ríos, El Oro and Loja. The investment includes the installation of sprinkler, micro-sprinkler or drip irrigation systems. Construction of each system requires four or five months, after which time other activities are carried out, such as training in the operation and maintenance of the systems and social strengthening of the users’ boards for their effective administration. Two hundred and forty-five families farming more than 500 hectares will be the first beneficiaries of these works. Once the modern irrigation system is in operation, the project will offer technical assistance to farmers to improve crop probability and marketing. The Project is implemented in 10 provinces of the highlands and seven of the coast with a US$80 million World Bank loan; US$20 million from the Spanish Agency for International Development Cooperation; US$20 million from MAGAP; and a US$8.6 million contribution from beneficiaries.   Smallholder and medium-holder farmers with up to 20 hectares in the highlands and 40 hectares on the coast are eligible to participate in the project.

José Quishpe representa a 400 agricultores del proyecto Alpaca del cantón Cayambe, en la provincia ecuatoriana Pichincha.  Ellos son propietarios de 1.200 hectáreas donde tradicionalmente cultivan chocho (leguminosa), melloco (tubérculo), maíz, cebada, trigo, papa, quinoa, entre otros productos. Entre los muchos desafíos a los que se enfrentan cada día están la erosión de los suelos y la pérdida de las cosechas. Actualmente, el riego lo aplican por inundación, lo que no les permite distribuir adecuadamente el recurso a todos los socios. Este uso poco sustentable del agua afecta la calidad de vida de la población. Es en este contexto que se inserta el Proyecto de Irrigación Tecnificada (PIT), que permitirá a los agricultores utilizar de forma mucho más eficiente el agua a través de infraestructura de riego tecnificado parcelario, además de recibir apoyo técnico para fortalecer la organización de la asociación, desarrollar prácticas ambientales y de economía productiva, así como respaldar la comercialización de sus productos. En Ecuador apenas el 13.8% de la superficie bajo riego cuenta con riego tecnificado. Este tipo de tecnología permite a los pequeños agricultores optimizar el uso del agua y suministrar a los cultivos la cantidad necesaria de manera eficiente para su desarrollo, disminuyendo de esta forma el desperdicio de este valioso recurso que es cada vez más escaso. Como José, muchos agricultores han participado en las convocatorias que realiza el Ministerio de Agricultura, Ganadería, Acuacultura y Pesca, MAGAP, para socializar el proyecto e invitarles a presentar las solicitudes para obtener el financiamiento para la instalación del riego tecnificado.  “Estamos muy entusiasmados con la posibilidad de presentar una propuesta que pueda ser seleccionada y financiada. Esta modalidad de riego no solo permite optimizar el uso del agua sino también nuestro tiempo, cuando no contamos con la tecnificación tenemos que levantarnos en las noches o madrugadas para realizar esta  actividad manualmente”, señaló José Quishpe. Las primeras obras de los subproyectos piloto ya están en ejecución en las provincias de Manabí, Bolívar, Los Ríos, El Oro y Loja. La inversión incluye la construcción de la infraestructura de riego tecnificado por aspersión, micro aspersión o goteo.  Los plazos de construcción para cada obra están entre cuatro y cinco meses, luego de lo cual se realizarán otras actividades como: capacitaciones en operación y mantenimiento de los sistemas construidos y el fortalecimiento social a las juntas de usuarios para su correcta administración.  De estas primeras obras se beneficiarán 245 familias con más de 500 hectáreas. Además, con los equipos de riego tecnificado funcionando, se ofrecerá asistencia técnica a los agricultores para generar mayor rentabilidad en sus cultivos y comercializarlos mejor. El Proyecto de Irrigación Tecnificada se implementa en diez provincias de la Sierra y siete de la Costa a través de financiamiento del Banco Mundial por USD$80 millones; de la AECID por USD$20 millones; el MAGAP por USD$20 millones; y, un aporte de los beneficiarios de USD$8.6 millones.   Al proyecto pueden aplicar pequeños y medianos productores que tienen hasta 20 hectáreas en la Sierra y 40 hectáreas en la Costa.  

مع تكيف أمريكا اللاتينية مع هبوط أسعار السلع، يتجه صناع السياسات نحو أوثق السبل للنمو المستدام والمستمر وهو: الابتكار. تقول مارياليسا موتا، مدير قطاع الممارسات العالمية للتجارة والتنافسية بإدارة أمريكا اللاتينية والبحر الكاريبي، "عندما تبتكر أنشطة الأعمال، تزداد الإنتاجية ويصبح الاقتصاد أكثر قدرة على المنافسة."ولدى العديد من بلدان أمريكا اللاتينية سياسات تشجع على الابتكار، إلا أن أغلبها أقل كفاءة أو فعالية مما ينبغي أن تكون عليه. وتعمل مجموعة البنك الدولي على مساعدة الحكومات على تقييم برامجها وتحسينها.ويقول ألبرتو كريسكولو، الخبير الأول المتخصص في القطاع الخاص، إن الغاية هي "أن نرى القيمة المقابلة للدولار. هل الإنفاق العام على الابتكار يتسق مع أولويات السياسات بشأن الابتكار؟ ما مدى تأثير البرامج على الابتكار؟ هل هناك تداخل بين الهيئات والوزارات؟ ما الذي يمكن أن نتعلمه من تطبيق البرامج الحالية؟ هذه المراجعات للعلوم والتكنولوجيا والإنفاق على الابتكار تتم بدعم من مجموعة البنك الدولي في بيرو وكولومبيا وشيلي وبلدان أخرى.ويقول كريسكولو إن هناك "فجوة بين ما تحتاجه الصناعة وما تجريه الجامعات من بحوث. فكل منهما يعمل في واد آخر." تقييمات البنك الدولي يمكن أن تساعد في تحديد مجالات الابتكار التي تحتاجها الصناعة أكثر، وأن تشجع على تمويل البحوث المتصلة بها.تقييم المزيجوفي شيلي، قيمت مجموعة البنك الدولي مستوى جودة مزيج سياسات الابتكار والعمل الحر وعملت مع اثنتين من الهيئات الحكومية لرصد الممارسات الجيدة ومواطن الضعف في التصميم وفي ممارسات التطبيق. واستخدمت النتائج لتنوير عملية إعادة الهيكلة الحالية لأدوات الابتكار.وفي كولومبيا، قيمت مجموعة البنك الدولي أكثر من 120 أداة للسياسات، حيث قامت بقياس فعالية مزيج السياسات، ومدى تكرارها والفجوات بينها. والآن، تساعد مجموعة البنك الدولي الحكومة على تصميم استراتيجية وطنية للابتكار من خلال التوصية بانتهاج ممارسات جيدة تتعلق بأدوات الابتكار، مثل منح حوافز واضحة بشكل أفضل للبحوث والتطوير. والآن، تساعد المجموعة الحكومة على تصميم استراتيجية وطنية للابتكار بالتوصية بانتهاج ممارسات جيدة تتعلق بأدوات الابتكار، مثل منح حوافز أكثر وضوحا للبحوث والتطوير.ويقول الخبير الاقتصادي الأول ليوناردو ياكوفوني، الذي شارك في وضع التقييم الخاص بكولومبيا الذي غيرت البلاد نظامها الضريبي بعده، "لم يتجاوز عدد الشركات التي استفادت من الإعفاءات الضريبية في القطر كله العشرين شركة، أغلبها الشركات الكبرى في قطاعي التعدين والطاقة ."ويشارك ياكوفوني حاليا في جهود تقديم قرض قدره 600 مليون دولار لكولومبيا، تم إقراره في مارس آذار، من بين أهدافه تعزيز سياسات الابتكار.الإدارة والتكنولوجياويوضح ياكوفوني أن الابتكار أمر يتعلق بالإدارة بقدر ما يتعلق بالتكنولوجيا. "فالشركة التي تستطيع الابتكار هي أيضا تستطيع التعلم. والطريقة التي تنظم بها حياتك وتديرها مهمة للأسلوب الذي تتعلم به: أي تحديد الأهداف ومتابعتها. ربط عمليات الموارد البشرية والحوافز بالأهداف. وتلقي آراء العاملين عن كيفية مواصلة التحسين."ويقول مارك كروتس، الأخصائي الاقتصادي الأول، في البرازيل أيضا هناك مساحة كافية لتحسين أسلوب إدارة الشركات. وتظهر المسوح أن 18% من الشركات تدار بطريقة سيئة للغاية، مقابل 11% من الشركات في المكسيك، و% في الصين، و2% في الولايات المتحدة، وفقا للمسح العالمي للإدارات.بيد أن التكنولوجيا مهمة أيضا. ويقول دوتس إنه رغم خشية البعض من أن تبني تكنولوجيات جديدة سيؤدي إلى قتل الوظائف، "فإن تبني الشركات للتكنولوجيا يمكن في الحقيقة أن يكون اشتماليا، حيث يجلب وظائف أكثر وأفضل، ليس فقط للعمال ذوي المهارات العالية، بل أيضا للعمالة الأقل مهارة- شريطة أن يكون هناك زيادة كافية في الإنتاج."وقد اعتادت بلدان أمريكا اللاتينية، خاصة البرازيل، أن تكون مغلقة نسبيا أمام التجارة الخارجية، حيث لا تقدم للشركات إلا القليل مما يحفز على الابتكار والصمود أمام المنافسة في الأسواق العالمية- مما أدى إلى ارتفاع الأسعار على المستهلكين. إلا أن تحطيم تلك الحواجز يعني أن الشركات يمكنها أن توسع نشاطها ليمتد إلى ما وراء أسواقنا المحلية التقليدية. يقول دوتس، "عليهم أن يفكروا في العالم كقوقعة لهم."

Following the successful completion of the Paraguay Biodiversity Project, (supported by Global Environment Facility) which has contributed to the preservation of one of the region’s largest biological corridors, the World Bank and the hydroelectric dam Itaipú Binacional signed  a technical cooperation agreement to continue working on conservation of the Atlantic Forest. Through a Reimbursable Advisory Services Agreement (RAS), the World Bank (WB) will provide technical assistance to Itaipú to support the conservation and restoration of the Atlantic Forest, which is home to unique species of fauna and flora. The presentation of the agreement was attended by Jorge Familiar, Vice President of the World Bank for the Latin American and Caribbean Region, who highlighted the natural wealth of Paraguay as a blessing that must be taken care of for future generations. "Natural resources have to be used to generate wealth and development, but in a sustainable way so that they generate benefits for future generations," he said. "It is very clear today that we cannot talk about development without sustainability," he added. Ruth Tiffer Sotomayor, Project Team Leader from the Environment Global Practice, explained that through this cooperation the WB will support a strategy of engaging Itaipú with the government, local communities and the private sector in the largest restoration and conservation effort for the Atlantic Forest Corridor. The project will improve connectivity of ecosystems by promoting better land use practices, supporting the livelihoods of local farmers and indigenous communities, advising on policy changes, strengthening institutions and putting in practice the Bank’s global knowledge on landscape and forest restoration. 

A dreamy holiday destination for sun lovers and beach goers, Grenada, also called the "Spice Island," is home to over 100,000 people. With an ocean area 80 times larger than its land space, a rich and pristine coastline and colorful coral reefs driving its tourism industry, and a real understanding of climate risks, this Eastern Caribbean Island has recently positioned itself as a real blue economy champion in the region. Over 13,000 kilometers west, another small island developing state in the Western Indian Ocean with similar challenges and opportunities—the Seychelles—is also leading on the blue agenda. What common challenges and opportunities are facing small economies? What can the World Bank contribute to generate stable growth in small economies? These are key questions raised in recent conversations in the Caribbean and Washington. Small size, yet great opportunities Grenada Prime Minister Keith Mitchell, recently appointed as chair of the World Bank Group Small States Forum taking over from Seychelles Minister of Finance Jean-Paul Adam, called for the need to change the narrative from big to small, and in doing so, address opportunities for small states. "Small states can set an example for the rest of the world," said Prime Minister Mitchell. "We do not come to the table cap in hand. Small and nimble, quick and cost effective, so let’s look at specific opportunities." A recently launched World Bank study "Open and Nimble: Finding Stable Growth in Small Economies" shows that economic size measured by the size of working age population does not matter to the development and economic growth of countries. While small economies are more open to trade and foreign investment and highly specialized in their export sectors, they are also more nimble and able to change the structure of their economies and exports over time. In fact, small economies such as Costa Rica and Caribbean countries have been more successful in reinventing themselves than some of the region’s giants. Small states of the Caribbean have also shown how the strength of their fiscal policies and financial sector can help them become more resilient in difficult times. According to the Bank report "Taming Volatility: Fiscal Policy and Financial Development for Growth in the Eastern Caribbean," countries in the region such as Grenada and Saint Kitts, which have been able to save in good times and strengthen their banking system, have been able to endure more difficult times. Thinking blue growth and climate resilience Small island developing states such as Grenada and the Seychelles are looking at the ocean as the next frontier for sustainable economic development and are now starting to "think blue." For the Caribbean, this means unlocking ocean wealth in a way that sustainably contributes to blue growth and returns long-term benefits to communities such as job opportunities and food security. World Bank report "Toward a Blue Economy: A Promise for Sustainable Growth in the Caribbean" estimates that the Caribbean Sea generated $407 billion in 2012, representing almost 18 percent of Caribbean GDP, including mainland Caribbean coastal countries. Last year, the Seychelles completed an innovative debt for nature swap to strengthen the country’s environmental sustainability and climate resilience by restructuring its debt and adopting a comprehensive marine special plan. In the Caribbean, the World Bank Group is accelerating progress in this area by supporting the implementation of the Eastern Caribbean Regional Oceanscape Policy (ECROP) endorsed by all 11 heads of state of the Organization of the Eastern Caribbean States (OECS). The search for "blue growth" is now at the top of Grenada and many other small island developing states. This will also be part of the focus for the next heads of state meeting of the Caribbean Community (CARICOM) in July. Small states matter "The 50 percent increase of the International Development Association (IDA) from $50 billion to $75 billion, is a major opportunity for small states that are eligible for IDA (the World Bank Group’s concessional financing window). This comes at a very uncertain time for development finance and for climate finance," said Mitchell during the Small State Engagement Update at the WB-IMF Spring Meetings. For the Caribbean, the allocation for IDA-eligible countries including Dominica, Grenada, Guyana, Saint Lucia, and Saint Vincent and the Grenadine has more than tripled for the next IDA cycle. "With a larger allocation, these small states can strategically shift to larger and transformational projects that boost sustainable growth and generate inclusive opportunities for their population, especially youth," said Tahseen Sayed, World Bank country director for the Caribbean.

¿Para ti, la inversión en carreteras, aeropuertos, energía y otras áreas de la infraestructura es un papel exclusivo del Estado? ¿O puede incluir la participación del sector privado? Cada vez más gobiernos de América Latina y el Caribe …

Para você, o investimento em estradas, aeroportos, energia e outras áreas da infraestrutura é papel exclusivo do Estado? Ou pode incluir a participação do setor privado? Cada vez mais governos da América Latina e do Caribe optam pela segunda resposta, em especial levando-se em conta dois fatores.  O primeiro deles consiste no déficit de investimento em infraestrutura – a diferença entre o que existe e o que é necessário –, com estimativas em torno de US$ 180 bilhões por ano. O segundo é a dificuldade de aumentar significativamente o investimento público no atual contexto fiscal apertado e de recuperação lenta da economia latino-americana depois de seis anos de recessão.  Resultado: na última década, o número de projetos de parcerias público-privadas (PPPs) mais do que triplicou, passando de 40 para 140, sobretudo nos setores de energia, transportes, água e esgoto.  Um novo relatório do Banco Mundial sobre o tema, Financiamento privado de infraestruturas públicas por meio de PPPs na América Latina e Caribe, traz outros dados que evidenciam a importância crescente desse modelo na região. Entre eles, a quantidade de países que aprovaram leis referentes a elas nas últimas duas décadas: 19.  Já o percentual do PIB investido nas parcerias aumentou menos do que a média de crescimento da economia regional. Ou seja, o volume de recursos ainda pode evoluir, mas atraí-los e usá-los com eficiência – uma necessidade para toda a região – são ações que dependem de diversos fatores.  Segundo o relatório, embora a América Latina e o Caribe tenham programas de PPP desde o fim dos anos 1980, a evolução e o nível de sofisticação deles não têm sido uniformes.  Os do Chile e México são considerados os mais bem-sucedidos da região, especialmente no setor de transportes. Brasil, Colômbia e Peru também têm trajetórias extensas de projetos de PPP. No entanto, mesmo os mercados mais avançados precisam criar ambientes de licitação com maior competitividade e melhorar os mecanismos de financiamento de projetos. A região ainda tem em comum o desafio de melhorar a fase de planejamento e preparação dos projetos. Antes de tomar a decisão de contratação por meio de PPPs, por exemplo, o estudo recomenda fazer uma avaliação socioeconômica de custo-benefício, e poucos países cumprem isso. 

Challenge The economy of Latin America and the Caribbean countries has provided the means for an accelerated expansion of infrastructure construction in the region. In this context, promoting environmentally sustainable construction has become an essential element for achieving green growth. Sustainable infrastructure is fundamental for growth and inclusion, particularly in low- and middle-income countries such as in Latin America and the Caribbean region. In these countries, a key to successfully developing environmentally sustainable infrastructure is sharing knowledge and experience among specialists and building their technical capacity. Furthermore, the need in the region for acquiring specific knowledge regarding the latest innovations and best practices on environmental sustainability in the construction industry, as well as strengthening capacities for their correct implementation, has become a priority. In the past years, the region has experienced a revolutionary technological advance, providing an ideal scenario for developing a web-based knowledge platform allowing easy and inclusive access to knowledge and experience exchange between concerned parties. The impact of increasing access to knowledge on best practices for sustainable construction activities will help support these countries in complying with international standards and will ensure that they reach their environmental and sustainability goals. Approach The objective of the grant for the project Knowledge Platform: Environmentally Sustainable Infrastructure Construction was to develop a bilingual (English and Spanish) web-based knowledge platform in Latin America and the Caribbean to enhance skills, knowledge, and capacity to perform construction in an environmentally sustainable manner. Principal objectives are to (i) increase the capacity to develop environmentally sustainable infrastructure projects, (ii) improve good practices and enhance project results and outcomes, (iii) provide a reliable source of information, and (iv) offer specialized knowledge services to technical specialists. This knowledge platform, known as KPESIC, encompasses within the term sustainable environmental management the sound management skills needed to mitigate negative environmental, social, and health and safety impacts and risks from infrastructure projects as well as the skills and approaches needed to improve positive impacts or benefits to achieve more sustainable projects. The focus is on infrastructure sectors of transport (roads, rail, ports, and airports), energy (generation, transmission, and distribution), water and sanitation (water supply and distribution and wastewater collection and treatment), and urban development. The intention behind the platform is to provide knowledge resources to technical specialists working at governmental agencies, construction companies, or universities who are charged with managing environment issues in infrastructure construction. KPESIC deals with the project construction phase but also with the planning, design, operation, and maintenance phases, all of which are crucial in establishing environmentally sustainable infrastructure. 

As Latin America and the Caribbean begins to emerge from six years of economic slowdown, including two of recession, it is essential to find ways to nurture and strengthen this budding recovery. Economic growth was the central factor behind the region’s striking social and economic achievements of the last decade, when Latin America cut extreme poverty by half, significantly reduced inequality, and greatly expanded the middle class. But we no longer enjoy the conditions that enabled all this. The drop in the prices of commodities and the slowdown in key economies, such as China, hit the region hard. In today’s very different scenario, it is crucial to rebuild the foundations for economic recovery. Infrastructure stands out as one of the main enablers to enhance productivity and sustainably boost our domestic growth engines. It is clear that Latin America and the Caribbean does not have the infrastructure it needs or deserves, and the accomplishments of the past decade make this contrast even starker. Low-quality roads keep people from jobs and public services and increase the costs of small farms and exporters alike, making them less able to compete. Over 100 million people, almost a fifth of the population, do not have access to improved sanitation, and two-thirds of sewage goes untreated, spreading disease and degrading our rivers. In 2012 alone, this caused Latin Americans to lose a combined 900,000 years of life because of disability, ill health or death. At the same time, much of our current infrastructure is not prepared for trends such as rapid urbanisation, or to face the extreme weather events associated with climate change, that result in tragic loss of life and massive rebuilding costs. The recent floods in Peru and Colombia caused over 300 deaths, and swept away more than 3,000 km of roads and almost 300 bridges in Peru alone, isolating scores of villages. The poor and vulnerable bear the brunt of these impacts. They are also the first to suffer when infrastructure is simply not present, having no option but to resort to costly alternatives such as water trucks and electrical generators. Traditionally, the region has tried to solve this by looking for more resources. There has long been talk about the investment gap in infrastructure — the difference between what we have and what is needed — with estimates around US$180 billion per year. However, this hides a very complex and varied reality across the region. While the region, as a whole, invests less than three per cent of GDP in infrastructure, compared to East Asia’s over seven per cent, some countries invest more than four per cent. In addition, significant increases in public investment are not realistic in today’s tight fiscal context. Two recent World Bank reports reveal that, rather than necessarily spending more, a lot can be done by spending better and by ensuring that the full potential of the private sector is tapped. The debate must shift from how much finance the region needs, and how to raise it, to what actually needs to be done, and finding the most efficient ways of achieving it. Addressing the inefficiencies will require interventions at the sectoral level as well as more systemic ones, including tackling lack of institutional capacity for planning, regulatory uncertainty, as well as budgeting and implementation issues.  

As Latin America adapts to the downturn in commodity prices, policymakers are turning to the surest path to sustainable, lasting growth: innovation. “When businesses innovate, productivity increases and economies become more competitive,” says Marialisa Motta, manager of the Trade and Competitiveness practice in Latin America and the Caribbean. Many Latin American countries have policies to encourage innovation, but most are less efficient or effective than they could be. The World Bank Group is helping governments take stock of their programs and improve them. The goal, says Senior Private Sector Specialist Alberto Criscuolo, is to see “what is the bang for the buck? Is the public expenditure on innovation consistent with the policy priorities on innovation? How effective are the programs on innovation? Are there overlaps between agencies and ministries? What can we learn from the implementation of existing programs?” These reviews of science, technology, and innovation spending are being done with World Bank Group support in Peru, Colombia, and Chile, among others. Often, Criscuolo says, there’s a “gap between what industry needs and what universities are researching. The two sides don’t talk to each other.” The World Bank Group assessments can help identify which areas of innovation are in high demand from industry, and encourage funding of that research.Evaluating the Mix In Chile, the World Bank Group evaluated the quality of the innovation and entrepreneurship policy mix and worked with two government agencies to identify good practices and weaknesses in design and implementation practices. The results were used to inform the current restructuring of innovation instruments. In Colombia, the World Bank Group evaluated more than 120 policy instruments, measuring the effectiveness of the policy mix, the degree of redundancies, and gaps. Now the Bank Group is helping the government design a national innovation strategy by recommending good practices on innovation instruments, such as better-defined tax incentives for research and development. “Fewer than 20 companies in the whole country were benefiting from the tax breaks, mostly large mineral or energy companies,” says Lead Economist Leonardo Iacovone, who worked on the Colombia assessment, after which the country changed its system. Iacovone is now co-leading a $600 million loan to Colombia, approved in March 2017, whose objectives include strengthening innovation policies.Management as Well as Technology Innovation is about management as much as technology, Iacovone points out. “A company that’s able to innovate is one that’s able to learn. The way you get organized and managed is crucial in the way you’re able to learn: Setting and monitoring targets. Linking human resources processes and incentives to targets. Getting feedback from workers on how to continuously improve.” In Brazil as well, there is much room to improve how firms are managed, says Lead Economist Mark Dutz. Surveys show that 18% of firms are very badly managed, compared to 11% in Mexico, 6% in China, and 2% in the United States, according to the World Management Survey. But technology is important too. Though some fear that adopting new technologies will kill jobs, Dutz says, “Technology adoption by firms can actually be inclusive, creating more and better jobs not just for highly skilled workers, but also lower-skilled workers – provided there is enough output expansion.” Traditionally, Latin American economies, particularly Brazil, have been relatively closed to foreign trade, giving companies little incentive to innovate and remain competitive in global markets – and leading to higher prices for consumers. But breaking down those barriers means that companies can expand beyond their traditional domestic markets. “They need to think of the world as their oyster,” Dutz says.