Infrastructure Problems in Latin America

This article in the Economist highlights the problems with infrastructure in many Latin American countries. Millions of people do not have access to potable water, and millions more do not have access to sewerage. Government investment in infrastructure can be very beneficial to the poorest citizens. However, the national governments often do not have enough revenue to provide many needed services to their people. This explains why Chile has been so successful with privatizing roads, water, and electricity. Many governments are cautious to turn to privatization, because it often causes resentment among citizens. In countries like Bolivia, where oil, gas, and water have been nationalized, citizens may be paying less, but the government falls more and more into debt.