Central America requires an investment of 45 billion dollars to improve the lives of its inhabitants and not raise the level of immigration
To improve the lives of its inhabitants and prevent immigration from rising, the Central American region requires an investment of 45 billion dollars and the implementation of projects such as increasing trade, according to a report published by ECLAC in collaboration with governments of the region.
May 23, 2022
The countries that make up the Central American region require an investment of 45 billion dollars over the next five years in order to improve the living conditions of their inhabitants, according to projections by the Economic Commission for Latin America and the Caribbean (ECLAC) of the United Nations (UN).
In 2021, this region, which was recently toured by the President of Mexico, Andrés Manuel López Obrador, was analyzed in depth by ECLAC for the issuance of the document entitled: "Comprehensive Development Plan for El Salvador, Guatemala, Honduras and the South -Southeast Mexico.”
According to the conclusions of said report, whose preparation included the participation of the national governments involved, for Central America the investment required would have to focus on the following items: 31.2 billion dollars in economic development projects; $10 billion in welfare projects; $3.3 billion in environmental sustainability initiatives; and 500 million dollars to address the migratory cycle.
In addition to El Salvador, Guatemala and Honduras, the "Comprehensive Development Plan" includes nine states of Mexico located in the south-southeast of the national territory: Campeche, Chiapas, Guerrero, Oaxaca, Puebla, Quintana Roo, Tabasco, Veracruz and Yucatan.
In this planning exercise carried out jointly by the countries of the region with ECLAC, it is also contemplating the implementation of 114 projects ready to be launched, and which are framed in five objectives that would be guiding the development of this international community.
The first is about creating a space for sustainable development between El Salvador, Guatemala, Honduras and the south-southeast of Mexico, raising well-being and allowing migration to be an option and not an obligation; while the second to promote initiatives to improve economic performance, attract investment, increase trade and increase the generation of income and decent and decent jobs, preferably in the territories with the greatest migratory propensity.
The third objective focuses on promoting universal access to social rights and welfare for equality; the fourth to promote sustainability and resilience to climate change and comprehensive risk management to mitigate its incidence as a reason for migration; and the fifth to guarantee fundamental rights, as well as care and protection, security and dignity of people throughout the migration cycle (origin, transit, destination and return), promoting safe, orderly and regular migration.
Central America lags behind in infrastructure
One of the main bets made by the "Comprehensive Development Plan" to improve conditions in Central America, this being a region with problems of poverty and violence, is to improve the infrastructure of the countries that comprise it through a program.
“The Enabling Infrastructure Development Program aims to create development conditions in the territories that present high levels of poverty and unemployment as a result of the lack of infrastructure, in order to increase social cohesion and reduce the factors that lead to people leave their place of origin.
"The economic, social and geographical particularities of the most remote areas of the territory mean that these populations have little access to markets and health, education and health services," the document details.
According to the report, the Enabling Infrastructure Development Program requires an investment of 22 thousand 425 million dollars, and would have three subprograms, such as "Transportation Infrastructure," which would serve to promote road, rail and port infrastructure works in accordance with national priorities, in addition to supporting logistics infrastructure development initiatives in specific territories, such as the Isthmus of Tehuantepec in Mexico and Plan Pacífico in El Salvador.
Another subprogram is "Energy Infrastructure," which is intended to generate the conditions for investment in productive development and the energy transition towards renewable sources, and finally "Infrastructure for drinking water and sanitation," which would be focused on improving coverage and quality of essential basic services for people.
In accordance with the route outlined by the "Comprehensive Development Plan," Central America needs to undertake "far-reaching infrastructure works and reduce energy costs," with the goals of integrating the countries of the region, strengthening local economies, food security for the population and the reversal of damage to the environment.
”In the last decade, investment in infrastructure in the countries of northern Central America and the south-southeast of Mexico has focused on transportation and energy. In the first case, the little investment was concentrated in large road corridors, ports and airports, which has contributed to a progressive degradation of the coverage and quality of secondary roads, interior roads and rural bridges, works that are essential for social connectivity and economic development," is shared.
Among the specific infrastructure actions contemplated in the Plan are the following: “Gas pipeline between Mexico and the countries of northern Central America”; “Connection of Mexico with the Electrical Interconnection System for Central American Countries ( SIEPAC ) and second circuit of SIEPAC”; “Modernization and expansion of the Chiapas Port, state of Chiapas” and the “Development of the Tehuantepec isthmus: interoceanic multimodal corridor, Mexico.”
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