Latin America will need $572bn for power sector

According to the Economic Commission for Latin America and the Caribbean (ECLAC), countries in this region would require an investment of $572 billion in the electricity sector between 2007 and 2030 to meet the energy demand. According to the United Nations Framework for Climate Change (UNFCC), more than 85% of the energy investment in this region will come from the private sector.

International banks including the Inter-American Development Bank (IDB) are financing various power generation projects in this region. Since 2000, the IDB has financed more than $2.1 billion in renewable energy projects in the region, including hydro, wind and geothermal projects. The focus is to develop sustainable energy for the longer term through renewable energy sources. The banks also provide financial support for technical assistance programs for sustainable energy and energy efficiency.

Each member country appoints a governor, whose voting power is proportional to the Bank’s capital subscribed to by the country. The 26 Latin American and Caribbean countries in the IDB hold 50.02 percent of the voting power. The single largest shareholder is the United States, with 30.01 percent.

ianadds wrote:Inter-American Development Bank (IDB)

ianadds wrote:I can see why the fed is extremely resistant to transparent accounting audits ??

ianadds wrote:I can see why the fed is extremely resistant to transparent accounting audits ??

According to Goldman Sachs, Argentina's growth will be the largest in Latin America this year, expanding by as much as 8 percent. Molano, however, thinks 9.5 percent is more likely.

"I think that Argentina is really going great guns. It's kind of the first derivative of Brazil, it's really growing off Brazil and high growing prices," Molano said, adding that the opportunities are wide for investors.

South American Alternative #1: iShares MSCI Chile (ECH)

Chile is the long skinny country on the Pacific coast of South America. Unlike the other two countries we will talk about below, Chile doesn’t actually share a border with Brazil. Nonetheless, the two are close commercial partners — both became members of a regional free-trade pact in 1996.

At the same time, Chile has a strong, vibrant economy in its own right. A market-oriented economy and fiscally sensible government have combined with rich natural resource deposits to make Chile a leader in the region.

ECH is the only ETF focused on Chilean stocks. It came out in late 2007 and will have its three-year anniversary later this year. The shares more than doubled in the period between October 2008 and January 2010 and this year have headed even higher.

South American Alternative #2: iShares MSCI All Peru (EPU)

Peru lies north and west of Brazil. The mighty Amazon River originates in the Peruvian Andes before flowing through Brazil’s rainforest.

Peru’s economy was once simply another Third World basket case. But that all changed in the 1990s when President Albert Fujimori launched a plan to convert the nation into a free-market system. He was largely successful, and Peru has been booming ever since.

EPU is dominated by materials stocks, reflecting the nation’s key mining sector. Copper, gold and zinc are some of Peru’s top exports. The government has been cooperative in allowing global miners to partner with local firms, and the result has been a win for everyone.

South American Alternative #3: Global X/InterBolsa FTSE Colombia 20 (GXG)

Here’s something I bet you didn’t know: Colombia is the second-most populous nation in South America, exceeded only by Brazil. It was one of the first areas to be colonized by Spanish explorers. After independence, Colombia ruled over the area that is now Panama right up until 1903.

The Colombian economy faced a serious challenge from drug-related violence in the 1980s and 1990s. More recently, the government gained the upper hand as much of the drug trade moved elsewhere. Now Colombia is modernizing quickly.

The local economy is still highly dependent on natural resource exports (did you know that 70 percent of U.S. cut flower imports come from Colombia?). But the manufacturing and financial sectors are growing fast too.

GXG took off like a rocket after coming out in early 2009 — right near the global market lows. Since then the shares have doubled in value and gone even higher! GXG may look frothy after all these gains. But if Colombia continues to grow, it could shoot up even more. This is definitely an ETF to keep on your watch list.