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Could connectivity become an engine of development in South America?

June 28, 2016 by Ignacio Manuel Estevez - Alejandra Radl Leave a Comment


We are now more connected than ever. Facebook, Twitter, WhatsApp and other apps are part of our daily lives. They allow us to share experiences, move closer to each other, and keep us informed.

Nonetheless, there is also a connection that is not from a virtual world but it is instead from a physical reality. This is the connectivity that brings countries together through bridges, highways, and energy networks that provide electricity to millions of homes, and improve lives.

In contrast to social networks that attract thousands of users in just one day, a physical connectivity is built with time, skills, planning, teamwork, political will, and above all, large investments.

An example of this is the large border between Ecuador and Peru, which was a conflict zone for many years. However, when peace agreements were signed, a compromise for a Binational Plan was made, for the development of an interconnected road network between the two countries.

This is how the new bridge between the cities of Huaquillas (Ecuador) and Aguas Verdes (Perú) came about. It has not only helped on improvements to the tourist industry, transportation, and on the reduction of informal exchange; but it has also become a true icon of peace between the nations.

As you can see from this, it is hard, but not impossible. Since 2009, South American countries have been working together to be better connected and more integrated. For the first time, the governments of the region have sat on the same table to plan and implement key infrastructure projects for the region’s integration.

Yet, where should we start? Following their similar characteristics, the territory was organized in different Axes of Integration and Development that go beyond national borders. The priority projects for each axis are part of the Portfolio of Integration Infrastructure Projects, which is a portfolio with 593 energy, communications, and transportation projects; and with an estimated investment of 182,000 million dollars.

Initiative for the Integration of Regional Infrastructure in South America (COSIPLAN-IIRSA)

This task has been supported by the Initiative for the Integration of Regional Infrastructure in South America (COSIPLAN-IIRSA), within the framework of UNASUR, which receives technical and financial support from the IDB, CAF, and FONPLATA. The Institute for the Integration of Latin America and the Caribbean (INTAL) coordinates the work of these three institutions and facilitates the implementation of their work programs.

One element that contributes to the reduction of the inequality gap and promotes an inclusive development are the joint ventures in infrastructure.

Argentina, Brazil, Paraguay, and Uruguay coordinated efforts to start a multimodal transportation network comprised of roads, waterways, cargo trains, among other works. This project is now growing alongside with the regional trade, and it would not have been possible without the cooperation and collective efforts of all parties involved.

The same applies to the 26 steps of border area that Chile and Argentina prioritized along the Andes Mountain Range. These highly complex works increase connection alternatives, and deepen the social, cultural, and economic link between the countries.

None of these accomplishments would have been possible without the commitment of the planning and public works officials, and many other government departments that worked together to strengthen the hardware of integration. This built the bases of the framework for regional development.

The physical integration is an essential pillar on which the union of South America settles. It is the legacy of our founding fathers, who envisioned South America as one land that goes beyond borders, and with strong foundations that allow us to get closer each passing day.

 


Filed Under: Regional Cooperation, Regional Integration, Trade Facilitation Tagged With: INTAL, Regional Integration

Ignacio Manuel Estevez

Economista del Instituto para la Integración de América Latina y el Caribe (INTAL) del Banco Interamericano de Desarrollo (BID). Licenciado en Economía de la Universidad Argentina de la Empresa, cursó estudios de Maestría en Economía de la Universidad del CEMA. Especialista en política y planificación de transporte de la Universidad de San Martín. Trabaja en el INTAL desde 1995 y hace 7 años que brinda apoyo técnico y operativo a COSIPLAN-IIRSA. Es autor de trabajos y artículos sobre integración física en América del Sur.

Alejandra Radl

Alejandra Radl is specialist in integration and trade at the Institute for the Integration of Latin America and the Caribbean (INTAL) at the Inter-American Development Bank (IDB). She has 20 years of experience working on infrastructure integration projects, development of border regions and facilitation of international trade. She gives strategic support to binational and regional initiatives in the South American region and leads the design of digital platforms and tools. She is project fellow in Digital Trade at the Center for the Fourth Industrial Revolution at the World Economic Forum (WEF). Previously, she worked for international organizations such as the Development Bank of Latin America (CAF) and FONPLATA. She has a bachelor’s degree in International Relations at Universidad del Salvador and a postgraduate degree in International Project Management at Universidad Católica Argentina.

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