Empowering LAC

Public-private partnerships can go a long way in addressing major challenges and enhancing collaboration to strengthen infrastructure cooperation in the two economies

The recent South American Nations summit held in Brazil served as a platform for leaders to engage in discussions surrounding political, social, economic, environmental and infrastructure issues. Data shows that between 2005 and 2020, China has invested in and completed a total of 138 infrastructure projects in Latin America and the Caribbean region. The cumulative funding for these projects has exceeded $94 billion, contributing to the creation of over 600,000 job opportunities locally. Latin America and China have been fostering collaboration in the field of infrastructure, and it is crucial to address the major challenges that hinder their cooperation and provide guidance for their future endeavors.

One of the primary challenges lies in ensuring that infrastructure development in Latin America and China aligns with sustainable practices. Both regions must prioritize environmentally friendly projects that incorporate clean energy, waste management, and the preservation of natural resources. By emphasizing sustainability, they cannot only mitigate ecological risks but also foster long-term economic growth.

Latin America boasts of vast territories and abundant clean energy resources such as solar, hydro, and wind power. To balance economic development and environmental protection, several Latin American countries have implemented a series of initiatives to promote clean energy development. The prospects for cooperation between China and Latin America in the field of the low-carbon transition are promising. For instance, since establishing its office in Argentina in 2011, the China Electric Power Construction has signed 23 projects in eight provinces of Argentina, creating over 100 direct job positions and more than 15,000 indirect job positions. As of now, a total of 12 renewable energy projects have been completed, with a combined installed capacity exceeding 1 gigawatt, making the China Electric Power Construction the largest renewable energy contractor in Argentina.

Efficient governance is vital for successful infrastructure cooperation. Latin America and China must promote accountable practices, combat corruption, and establish robust legal frameworks that protect the rights and interests of all stakeholders involved. Countries in Latin America can learn from China’s experiences in implementing effective anti-corruption measures. The Brazilian government has recently launched the “Building Brazil” project, which aims to enhance project information transparency, streamline infrastructure funding approval procedures, expedite relevant licensing processes, and create a more attractive investment environment for infrastructure.

Furthermore, Latin America and China have distinct cultures and societal structures. To ensure smooth cooperation, efforts must be made to foster cultural exchanges, understanding, and respect. Encouraging people-topeople exchanges, academic collaborations, and promoting cultural events can help in building stronger relationships, bridging gaps and facilitating smoother project implementation. By appreciating each other’s cultural nuances, Latin America and China can navigate potential challenges and build mutual trust and respect. Chinese companies have achieved deep localization in Latin America at different levels. For example, there is employee localization, with the majority of Chinese-funded enterprises employing local staff. According to statistics from the China-Latin America Academic Network, from 2000 to 2021, Chinese-funded enterprises in Latin America employed over 580,000 people, creating significant new employment opportunities.

Latin America and China should focus on comprehensive long-term planning, considering the social, economic, and environmental impacts of infrastructure projects. By conducting feasibility studies, risk assessments, and stakeholder consultations, they can identify potential challenges and devise effective strategies to address them. A well-designed planning process can ensure that infrastructure projects meet the needs of the local population while minimizing negative impacts.

Encouraging knowledge and technology transfer is essential to empowering Latin American countries and enhancing their capacity for infrastructure development. China, as a global leader in infrastructure development, can share its expertise in areas such as renewable energy, transportation, and digital connectivity. By promoting collaborations, training programs, and technology exchanges, Latin America can benefit from China’s experiences and innovations, fostering local capabilities and boosting regional progress.

Strengthening public-private partnerships can bring significant benefits to infrastructure projects. Governments, private companies, and international financial institutions should collaborate to create an enabling environment for investment, mobilizing funds, and ensuring project sustainability. Public-private partnerships can leverage expertise, innovation, and resources, enabling efficient project execution. Latin America and China can learn from successful models of public-private partnerships, such as China’s Belt and Road Initiative, which has demonstrated the potential for collaborative infrastructure development.

Latin America and China possess immense potential for infrastructure cooperation. By addressing challenges related to sustainable development, transparency, and cultural understanding, they can pave the way for fruitful collaboration. Through comprehensive planning, knowledge transfer, and public-private partnerships, they can enhance infrastructure development, drive economic growth, and improve the quality of life for their citizens. With a shared vision and concerted efforts, Latin America and China can build a stronger foundation for long-term cooperation, benefiting both regions and fostering mutual prosperity.

Latin America and China possess immense potential for infrastructure cooperation. By addressing challenges related to sustainable development, transparency, and cultural understanding, they can pave the way for fruitful collaboration.

The author is a former minister of tourism of Brazil and a professor of public policy at Tsinghua University’s School of Public Policy and Management. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

SONG CHEN / CHINA DAILY