International Monetary Fund. External Relations Dept.
I n many countries—especially in Latin America—budget constraints have limited public investment and led to infrastructure bottlenecks in some places. To boost investment without causing destabilizing fiscal imbalances, many governments are turning to public-private partnerships (PPPs), but these are not without risks. At a recent seminar (see box), sponsored by the IMF and the government of Brazil, representatives from Latin American and industrial countries, international financial institutions, and academics discussed how to improve public investment