This analysis of Ecuador President Rafael Correa’s call for increased spending on infrastructure says that there is significant risk to investors because of the country’s unpredictable policy environment in recent years:
President Rafael Correa has publicly called for private investors to finance infrastructure projects in Ecuador. However, despite the strong rhetoric, we do not believe Ecuador’s infrastructure sector holds much attraction for private investors owing to political and financial concerns. Problems encountered by investors in the past indicate a level of risk that far outweighs the benefits of entering the market.
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