Latin America's infrastructure gap.

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The total infrastructure gap in Latin America--the difference between existing and needed investments--is a whopping $170 billion per year to 2020, according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). It warns that ports in South America will reach their capacity by 2020 if they don't invest in infrastructure.

Major weaknesses in the quality of infrastructure continue to plague most of Latin America, including its largest economies, according to the latest Latin Infrastructure Index from our sister publication Latin Business Chronicle.

The index looks at four key categories and 24 subcategories of infrastructure. The four key categories are: Transport, Technology, Water and Electricity. It uses data from seven different sources, including The World Bank, the World Economic Forum, the International Monetary Fund and the International Telecommunications Union.

Some progress has been made as Brazil, working to meet infrastructure demands of the 2014 World Cup, has begun granting concessions to private investors in an effort to renovate and operate its notoriously deficient airports before millions of soccer fans need to be moved between 12 Brazilian cities for the multiple matches. The country also plans to spend more than $41 billion over the next four years on telecommunications, according to Brazil's Minister of Communications.

Panama, Chile and Uruguay lead the 2011 Infrastructure Index in 1st, 2nd and 3rd place, respectively, in the overall ranking, matching their performance in the 2010 index, while the region's largest economy--Brazil--dropped a slot to 8th place (tying with Peru) in the ranking of 18 countries. Haiti, which appeared in last year's index, was not included in the 2011 ranking.

Mexico, the other regional giant, moved up two positions to the 6th position while Peru jumped four slots to the No. 8 ranking. Argentina this year is ranked 4th after moving up one notch form last year.

In spite of Mexico's infrastructure gains, the latest index demonstrates that the region's two most important economies--Brazil and Mexico--remain far behind the leaders.

At the bottom end of the list, Nicaragua stubbornly held on to 18th place, the same as last year, and last place among the countries surveyed for 2011. Paraguay (17th place) and Bolivia (16th place) each fell one position from 2010.

HOW DID BRAZIL AND MEXICO RANK?

TRANSPORT: Mexico (6th), Brazil (3rd fast)

TECHNOLOGY: Brazil (5th), Mexico (10th)

ELECTRICITY: Brazil (7th), Mexico (10th)

WATER: Mexico (4th), Brazil (6th)

Mexico is significantly better than Brazil. when it comes to transport infrastructure and somewhat better in water infrastructure, while Brazil. has the upper hand in technology and electricity.

Source: Latin Business Chronicle

CATEGORY RESULTS
Category leaders and laggards

               FIRST     LAST

TRANSPORT:     Panama    Venezuela
TECHNOLOGY:    Panama    Nicaragua
ELECTRICITY:   Uruguay   Venezuela
WATER:         Uruguay   Peru