FILE COPy. Trends in Private Investment in Thirty Developing Countris IFD- 6 FILE COPY. Guy P. Pfeffermann Andrea Madarassy INTERNATIONAL

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1 Public Disclosure Authorized IFD- 6 INTERNATIONAL FILE COPY FINANCE _ CORPORATION DISCUSSION PAPER NUMBER 6 Public Disclosure Authorized Trends in Private Investment in Thirty Developing Countris Public Disclosure Authorized Guy P. Pfeffermann Andrea Madarassy Public Disclosure Authorized FILE COPy

2 RECENT IFC DISCUSSION PAPERS No. 1 No. 2 No. 3 No. 4 Private Business in Developing Countries: Improved Prospects. Guy P. Pfeffermann Debt-Equity Swaps and Foreign Direct Investment in Latin America. Joel Bergsman and Wayne Edisis Prospects for the Business Sector in Developing Countries. Economics Department, IFC Strengthening Health Services in Developing Countries through the Private Sector. Charles C. Griffin No. 5 The Development Contribution of IFC Operations. Economics Department, IFC No. 6 Trends in Private Investment in Thirty Developing Countries. Guy P. Pfeffermann and Andrea Madarassy

3 INTERNATIONAL FINANCE =_. CORPORATION DISCUSSION PAPER NUMBER 6 Trends in Private Investment in Thirty Developing Countries Guy P. Pfeffermann Andrea Madarassy The World Bank Washington, D.C.

4 Copyright i 1989 The World Bank and International Finance Corporation 1818 H Street, N.W. Washington, D.C , U.S.A. All rights reserved Manufactured in the United States of America First printing September 1989 The International Finance Corporation (IFC), an affiliate of the World Bank, promotes the economic development of its member countries through investment in the private sector. It is the world's largest multilateral organization providing financial assistance directly in the form of loan and equity to private enterprises in developing countries. To present the results of research with the least possible delay, the typescript of this paper has not been prepared in accordance with the procedures appropriate to formal printed texts, and the IFC and the World Bank accept no responsibility for errors. This is a study by the staff of the Economics Department of the IFC, and the judgments in it do not necessarily reflect the views of the Board of Directors or the governments they represent. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to Director, Economics Department, IFC, at the address shown in the copyright notice above. The IFC encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to photocopy portions for classroom is not required, though notification of such use having been made will be appreciated. The complete backlist of World Bank publications, including those of the IFC, is shown in the annual Index of Publications, which contains an alphabetical title list and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from Publications Sales Unit, Department F, The World Bank, 1818 H Street, N.W., Washington, D.C , U.S.A., or from Publications, The World Bank, 66, avenue d'iena, Paris, France. Guy P. Pfeffermann is director of the Economics Departrnent of the IFC and chief economic adviser of the Corporation. Andrea Madarassy is a research analyst in the Economics Department. Library of Congress Cataloging-in-Publication Data Pfeffermann, Guy Pierre. Trends in private investment in thirty developing countries / Guy Pfeffermann, Andrea Madarassy. p. cm. -- (Discussion paper / International Finance Corporation ; no. 6) Includes bibliographical references. ISBN Investments--Developing countries. I. Madarassy, Andrea, II. Title. III. Series: Discussion paper (International Finance Corporation) ; no. 6. HG5993.P '7314' dc2O CIP

5 Abstract Economic growth and development depend essentially on a country's ability to invest and make efficient and productive use of its resources. The role of the private sector is important here, both in terms of its contribution to the quantity of gross domestic investment and its ability to allocate and employ resources efficiently. Over the past two decades, a number of changes have occurred in the business environment for the private sector in the developing countries. Responding to these changes, private entrepreneurs have altered the level of their investment. The intention of this paper is to quantify the private investment fluctuations in thirty developing countries, and to describe the general trends. Annual private investment data was gathered and expressed both as a percentage of gross domestic product and as a percentage of gross domestic investment for the period Comparisons of the level of private investment as a percentage of GDP across countries indicate great variations in business climate and government attitudes towards the private sector. There are marked regional differences as well, which are documented and discussed in the paper. The direction of change in private investment is, however, fairly similar across countries. Average trends based on the thirty country sample confirm that private investment has been on the rise in recent years.

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7 Table of Contents Page No. Introduction Methodology... 1 Trends... 3 Developing Country Investment Trends Regional Trends Recent Country Trends Tables... 8 Charts Notes... 63

8 List of Tables Page No. Table 1: Investment (Percent of GDP) Table 2: GDP (at Current Prices) Table 3: Breakdown of Investment by Sector I. 15 Table 4: Average Investment Shares for 30 Developing Countries 20 Table 5: Regional Averages Latin America East Asia South Asia Africa Table 6a: Average Investment Shares ( ) Table 6b: Average Investment Shares ( ) -- Ranked Table 7: Trends in Private Investment as a Percent of GDP Table 8: Trends in Share of Private Investment in GDI Table 9: Annual Weighted Average of Investment Shares

9 List of Charts Page No. Chart 1: Latin America Chart 2: East Asia Chart 3: South Asia Chart 4: African Countries Chart 5: Recent Trends (30-Country Sample) Country Charts Argentina Bangladesh Bolivia Brazil Chile Colombia Costa Rica Ecuador Guatemala Hungary India Indonesia Kenya Korea Malaysia Mexico Nigeria Pakistan Peru Philippines Portugal Singapore Sri Lanka Thailand Tunisia Turkey Uruguay Venezuela Zambia Zimbabwe... 62

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11 TRENDS IN PRIVATE INVESTMENT IN 30 DEVELOPING COUNTRIES Introduction During the 1980s there has been a shift in government thinking in developing countries from an emphasis on the public sector towards greater reliance on private enterprise. It is not easy to determine whether and to what extent this new thinking has been reflected in the allocation of resources between the public and the private sector. For example there is little evidence in the literature whether or not private sector investment has grown faster than public sector investment in developing countries. Yet, after several years of structural adjustment in many developing countries, the results should have begun to show in the statistics. An attempt is made in this paper to compile private investment data for the period and to show how the trends have evolved relative to public sector investment. Thirty countries 1 were selected which include most of the larger developing economies and some of the smaller LDCs. The sample countries are also aggregated into regional groupings, such as Latin America, East Asia, South Asia, and countries of Sub-Saharan Africa. The work is based on World Bank staff estimates. Methodology National accounts normally do not break down Gross Domestic Investment into its private and public sector components. "Private investment" is defined in this paper as the difference between total gross domestic investment (from national accounts) and consolidated public investment. Consolidated public investment data for each country were found mainly in World Bank Country Economic Memoranda, Public Investment Reviews, Public Expenditure Reviews, and other World Bank country reports. They reflect efforts by World Bank missions to compile 1 Argentina, Bangladesh, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Hungary, India, Indonesia, Kenya, Korea, Malaysia, Mexico, Nigeria, Pakistan, Peru, Philippines, Portugal, Singapore, Sri Lanka, Thailand, Tunisia, Turkey, Uruguay, Venezuela, Zambia and Zimbabwe.

12 -2- public sector data. In a few countries where World Bank data are not available, appropriate country data were used. Among the data problems inherent in this method, the following can be readily identified: a) The emphasis is on fixed capital formation; wherever possible financial investment has been excluded. It is not always clear from the data, however, whether or not financial investment is included under "consolidated public investment" in a particular country. b) Changes in inventories are a part of the residual "private investment" in some countries but not in others. 2 Where changes in inventories are exduded, the total investment figure used is gross domestic fixed investment (GDFI) in all calculations, rather than gross domestic investment. c) In the official statistics, the treatment of state enterprises and corporations which are partially owned by the public sector is often unclear; presumably it varies from country to country. "Government" investment usually excludes state enterprise investments and other investments made outside the central government. Such investments are normally included under such headings as "energy", "industry", etc. but are not separated out from private investment in these sectors. This accounting procedure has created some difficulty in obtaining reliable public and private investment data. Where possible, we have clarified this in the Notes. d) Data for the 1970s are scarcer than for the 1980s. The main interest of the paper centers on the period of "structural adjustment", however, and country coverage for is quite comprehensive. Data for 1988 are available, at this time, only for a few countries, therefore regional aggregation is not representative of actual 1988 trends. 2 Changes in inventories are excluded in Brazil, Costa Rica, Ecuador, Guatemala, Hungary, Malaysia, Mexico, Nigeria, Pakistan, Peru, Philippines, Singapore, Thailand, Tunisia, Turkey, Uruguay, Venezuela and Zambia. Investment includes changes in inventories in Argentina, Bangladesh, Bolivia, Chile, Colombia, India, Indonesia, Kenya, Korea, Portugal and Sri Lanka.

13 - 3 - The paper presents the investment figures in terms of five ratios for each country. There are three ratios expressed as percentage of GDP: Gross Domestic Investment (GDI/GDP); Private Investment (Private I/GDP); and Public Investment (Public I/GDP); (see Table 1 for the ratios and Table 2 for the corresponding GDP figures). Two ratios are expressed as percentage of Gross Domestic Investment: Private Investment (Private I/GDI); and Public Investment (Public I/GDI); (see Table 3). All ratios are computed using local currency units at current prices. This comprehensive 30 country data set (Table 1-3) provides raw data for further analysis. These same five ratios are analyzed in Tables 4-9. Tables 4 & 5 are simple (non-weighted) averages of annual investment shares across countries. Table 4 (a and b) shows private and public investment trends for the 30 countries, while Table 5 (a, b, c, and d) shows regional trends. Simple averages are also calculated across the years : Table 6 (a and b) present the five ratios averaged over the whole period. Table 6b ranks countries in order of average private investment shares. Tables 7 & 8 show private investment shares for each of the countries in selected periods for a brief overview and cross country comparison of trends. The countries are ranked by the increase in private investment shares in recent years. Table 9 presents annual weighted averages of the five ratios for the 30 country sample (weighted by GDP, ). Developing Country Investment Trends It is apparent from Graphs 1 and 2 that, between 1970 and 1980, total investment was on the rise in developing countries, while in the 1980s it has declined. Private investment was substantially higher than public investment initially, but public investment has grown faster than private investment during the 1970s and early 1980s. Private investment rose, as a share of GDP, during the 1970s, it then declined, starting after the second oil shock. Public investment fell only later, after the onset of the debt crisis. Private investment seems to have begun to recover somewhat after reaching its low point around Overall, private investment has exceeded public investment throughout the 1970s and 80s (see also Chart 5).

14 -4 - Graph 1: Investment (% of GDP) 30-Country Sample Public % of GDP ', O- Private 1 0 f7 _ - o -E- Total Year Graph 2: Private & Public Shares of Total Investment 30-Country Sample N~ o0-~o O _ 0- i II I I I I I I I I I I I I I I I Year

15 - 5 - The annual investment data corresponding to the above two graphs are found in Table 4. They suggest that average total investment in the selected 30 developing countries increased from 18 percent of GDP in the early 1970s to a peak of about 23 percent of GDP in , and then dedined as a result of the debt crisis, and stabilized around 18.5 of GDP in On average ( ), private investment amounted to about 12 percent of GDP and public investment to about 9 percent of GDP. The most recent data suggest that private investment is still fairly low (10-11% of GDP), but that public investment was still somewhat higher in (8.5 % of GDP) than it had been during (6.8 % of GDP). The share of public investment in total investment increased steadily from 1970 to 1983, when public and private investment represented one-half each of the total. After 1983, private investment regained some of its lost share, reaching 55 % of total investment in 1987, but has not yet returned to its high levels of the early 1970s. Regional Trends Private investment has been higher than public investment throughout the period in East Asia and, to a lesser extent, in Latin America. In Latin America, as private investment declined and public investment rose, the two had equal shares by 1983, after which the former resumed its growth and the latter fell. In South Asia public investment has slightly exceeded private investment for the entire period under consideration. In the African countries in the sample, until 1980 private investment was higher than public investment. Then the share of public investment increased as private investment declined as a percent of GDP, to the point where over 60 percent of investment is now public -- the highest proportion of any region. In recent years private investment has averaged 9 percent of GDP in Latin America, 15 percent in East Asia, 8 percent in South Asia, and 6 percent in Africa.

16 -6 - Recent Country Trends Private investment, as percentage of GDP, reached a low point in most developing countries around Since then, private investment (as a % of GDP) has clearly risen in 19 out of the 30 countries, including most Latin American countries. Four countries had steady investment trends. Private investment (as a % of GDP) has, however, declined in four countries. For another three countries recent data is not available (Korea, Sri Lanka, Venezuela). Observe Table 7 and the country charts for a country by country breakdown of the trends from to Countries are listed below by the categories they fall into, "rising" versus "falling", and "steady": Rising private investment/gdp ratio: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Hungary, India, Indonesia, Kenya, Mexico, Nigeria, Peru, Portugal, Thailand, Turkey, and Uruguay. See Table 7 for the growth over the two years. Falling private investment/gdp ratio: Bangladesh, Malaysia, Philippines, and Tunisia. Steady private investment/gdp ratio: Pakistan, Singapore, Zimbabwe, and Zambia. As for recent changes in the respective shares of private and public investment, private investment has gained in 19 countries, public investment in three, and there has been no change in the remaining five (see Table 8 for the percentage of increase from 1983 to 1987): Rising share of private investment: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Hungary, India, Indonesia, Mexico, Nigeria, Pakistan, Peru, Philippines, Portugal, Singapore, and Thailand. Rising share of public investment: Bangladesh, Malaysia, and Zambia. Steady shares of private and public investment: Kenya, Tunisia, Turkey, Uruguay, and Zimbabwe.

17 - 7 - Based on the above findings we can conclude that the long run trends of private and public investment as a percentage of GDP have been roughly similar. During the 1970s, total investment as a percentage of GDP increased steadily, but this was reversed in the eighties, and by the mid-eighties it fell to about the level of the early seventies. The private share in total investment is on average higher than public. The spread between these shares narrowed in the seventies and early eighties. However, after 1983 the share of private investment in total investment began to increase. Private investment as a percentage of GDP started rising in most developing countries around Finally, the data provide some insight into private sector reactions to expansion of public investment. The sample data include 31 episodes when public investment was increased by more than 0.5 percent of GDP annually over a 3-year moving average period. In 17 cases private investment as a percentage of GDP also grew, while in 14 cases it declined. The results are the same using a one year lag. The data do not support the hypothesis that rising public investment tends to discourage private investment -- a form of "crowding out" -- nor do they show consistent evidence of positive linkages between the two. Rather, the suggestion is that the direction of change will depend on country circumstances, including the state of private sector confidence.

18 Table 1: Investment (Percent of GDP) Argentina GDUGDP Private l/gdp Public l/gdp Bangladesh GDVGDP Private l/gdp Public l/gdp Bolivia GDVGDP Private I/GDP Public I/GDP Brazil GDFVGDP Private l/gdp Public l/gdp Chile GDVGDP Private I/GDP Public I/GDP Colombia GDVGDP Private I/GDP Public I/GDP

19 Table 1: Investment (Percent of GDP) Costa Rica GDFVGDP Private I/GDP Public I/GDP Ecuador GDFVGDP Private I/GDP Public I/GDP Guatemala GDFVGDP Private I/GDP Public I/GDP Hungary GDFVGDP Private I/GDP Public I/GDP India GDVGDP Private I/GDP Public I/GDP Indonesia GDUGDP Private I/GDP Public UGDP

20 Table 1: Investment (Percent of GDP) Kenya GDVGDP Private i/gdp Public l/gdp Korea GDUGDP Private I/GDP Public I/GDP Malaysia 0 GDFUGDP Private I/GDP Public I/GDP Mexico GDFUGDP Private I/GDP Public UGDP Nigeria GDFUGDP Private I/GDP Public I/GDP Pakistan GDFUGDP Private l/gdp Public IGDP

21 Table 1: Investment (Percent of GDP) Peru GDFVGDP Private I/GDP Public VGDP Philippines GDFVGDP Private I/GDP Public I/GDP Portugal GDUGDP Private I/GDP Public I/GDP Singapore GDFVGDP Private I/GDP Public I/GDP Sri Lanka GDYGDP Private I/GDP Public VGDP Thailand GDFVGDP Private I/GDP Public UGDP

22 Table 1: Investment (Percent of GDP) Tunisia GDFVGDP Private l/gdp Public I/GDP Turkey GDFVGDP Private I/GDP Public l/gdp Uruguay GDFVGDP Private I/GDP Public I/GDP Venezuela GDFVGDP Private l/gdp Public I/GDP Zambia GDFVGDP Private l/gdp Public I/GDP Zimbabwe GDFVGDP Private l/gdp Public I/GDP

23 Table 2: GDP (in local currency, current prices, billions) Argentina Bangladesh Bolivia Brazil Chile Colombia Costa Rica Ecuador Guatemala Hungary India Indonesia Kenya Korea Malaysia Mexico Nigeria Pakistan Peru Philippines Portugal Singapore Sri Lanka Thailand Tunisia Turkey Uruguay Venezuela Zambia - - Zimbabwe

24 Table 2: GDP (in local currency, current prices, billions) Argentina Bangladesh Bolivia Brazil Chile Colombia CostaRica Ecuador Guatemala Hungary India Indonesia Kenya Korea Malaysia Mexico Nigeria Pakistan Peru Philippines Portugal Singapore Sri Lanka Thailand Tunisia Turkey Uruguay Venezuela Zambia Zimbabwe

25 Table 3: Breakdown of Investment by Sector (Percent) Argentina Private Public Bangladesh Private Public Bolivia Private Public Brazil Private Public Chile Private Public Colombia Private Public Costa Rica Private Public

26 Table 3: Breakdown of Investment by Sector (Percent) Ecuador Private Public Guatemala Private Public Hungary Private Public a India Private Public Indonesia Private Public Kenya Private Public Korea Private Public

27 Table 3: Breakdown of Investment by Sector (Percent) Malaysia Private Public Mexico Private Public Nigeria Private Public Pakistan Private Public Peru Private Public Philippines Private Public Portugal Private Public

28 Table 3: Breakdown of Investment by Sector (Percent) Singapore Private Public Sri Lanka Private Public Thailand Private Public Tunisia Private Public Turkey Private Public Uruguay Private Public Venezuela Private Public

29 Table 3: Breakdown of Investment by Sector (Percent) Zambia Private Public Zimbabwe Private Public

30 Table 4a: Annual Averages in Investment Shares for 30 Developing Countries Average Total l/gdp Private l/gdp Public I/GDP Table 4b: Average Breakdown of Investment between Public and Private Sectors for 30 Developing Countries Average Private ]/Total I Public I/Total I

31 Table 5a: Investment Shares for Latin America (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Peru, Uruguay, Venezuela) Average Total l/gdp Private l/gdp Public I/GDP Private I/Total I Public I/Total I Table 5b: Investment Shares for East Asia (Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand) Average Total VGDP Private l/gdp Public VGDP Private I/Total I Public I/Total I

32 Table 5c: Investment Shares for South Asia (Bangladesh, India, Pakistan, Sri Lanka) Average Total l/gdp Private l/gdp Public l/gdp Private I/Total I Public I/Total I Table 5d: Investment Shares for Africa (Kenya, Nigeria, Zambia, Zimbabwe) Average Total l/gdp Private l/gdp Public l/gdp Private I/Total I Public I/Total I

33 Table 6a: Average Investment Shares ( ) Total I/GDP Private l/gdi Public I/GDP Private I/GDI Public I/GDI Argentina Bangladesh Bolivia Brazil Chile Colombia Costa Rica Ecuador Guatemala Hungary India Indonesia Kenya Korea Malaysia Mexico Nigeria Pakistan Peru Philippines Portugal Singapore Sri Lanka Thailand Tunisia Turkey Uruguay Venezuela Zambia Zimbabwe Average

34 Table 6b: Average Investment Shares ( ) Total I/GDP Private Il/GDPPublic l/gdp Private l/gd4 Public l/gdi Korea Philippines Guatemala Thailand Singapore Portugal Costa Rica Uruguay Brazil Mexico Colombia Ecuador Kenya Zimbabwe Peru India Bangladesh Venezuela Argentina Indonesia Chile Malaysia Turkey Sri Lanka Bolivia Tunisia Pakistan Nigeria Zambia Hungary Note: Countries are ranked by share of private in total investment.

35 Table 7: Trends in Private Investment as a Percentage of GDP % Change Nigeria Peru Ecuador Chile Bolivia Turkey Argentina Costa Rica Brazil Uruguay Thailand Colombia India Portugal Kenya Guatemala Hungary Mexico Indonesia Pakistan Singapore Zambia Zimbabwe Philippines Bangladesh Tunisia Malaysia Korea Sri Lanka Venezuela Average Note: Countries are ranked by the percent increase in private investment as a share of GDP from 1985, the lowest level of private investment share, to 1987.

36 Table 8: Trends in Share of Private Investment in Total Investment % Change Peru Bolivia Mexico Ecuador Nigeria Costa Rica Guatemala Chile Hungary Thailand Brazil Portugal Pakistan Singapore India Argentina Colombia Indonesia Philippines Turkey Zimbabwe Uruguay Kenya Tunisia Malaysia Bangladesh Zambia Korea Sri Lanka Venezuela Average Note: Countries are ranked by the percent increase in private share of investment from 1983, the lowest level of private investment share, to 1987.

37 Table 9a: Annual Weighted Average Investment Shares for Recent Years (30-Country Sample) (Percent of GDP) Public Private Total Table 9b: Annual Weighted Average Investment Shares for Recent Years (30-Country Sample) (Percent of GDI) Public Private

38 Chart 1: Latin America Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Peru, Uruguay, Venezuela Annual Average Investment Shares (Percent of GDP) / -Pi *- Total I % of GDP l_>-oo- - - Private I _7- *-- Public I Average Private Public Shares of Total Investment _ % of GDI T - -~O *-Pbi 30 - ~~~~~~~~~~~~~~.- Private i

39 Chart 2: East Asia Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand Average Investment Shares (Percent of GDP) \7. _ 25 : * O_ -- Public 20~~~~~~~~~~ % of GDP O - Private 1- Total 5 1 I I II Average Private Public Shares of Total Investment , 60 - _ % of GDI 50- -}- Public Private

40 Chart3: South Asia Bangladesh, India, Pakistan, Sri Lanka Average Investment Shares (Percent of GDP) A is Total I % of GDP - Private I E- o\ Rvo-^u U- Public I 21 I i i I a I Average Private and Public Shares of Total Investment %of GDI AN*A\ <*~*.* 50 -* / 0 '\n/-' 0-o o 0, 4- Public I 0- Private I *

41 Chart 4: African Countries Kenya, Nigeria, Zambia, Zimbabwe Average Investment Shares (Percent of GDP) 25 20,._ Total I % of GDP I 000 ' Private I 10 -O- U- Public I 01;;;; I;; i; ; ;~~~0- I {,,~~~~~~~.,..... I Average Private Public Shares of Total Investment oe * % of GDI l Public I Private i I I I I I I I I I I I I I I I I

42 Chart 5: Recent Trends (Weighted Averages) Weighted Average of Investment Shares ( ) (30-Country Sample) L -- Public I * = 4 =0_-0 *-- Total % of GDP lo- Private Weighted Average of Breakdown of Investment by Sector ( , 30-Country Sample) %- Public %ofgdl 30 I -0- Private *

43 Argentina Investment (Percent of GDP) %ofgdp 15 N. \o- *- Public Private 10 V... U- GDI 5, 0 I IIIIIII I Ii II. 1 1: Private and Public shares of GDI *~~~~~~~- Public Private

44 Bangladesh Investment (Percent of GDP) o- Public %of GDP 8 j,- Private 6 o 0 - GDI 4, Private and Public Shares of GDI 60 o 50 '- 40 %ofgdi Public - Private

45 Bolivia Investment (Percent of GDP) 20- ' %of GDP 15 \--- -Public ' 0- Private 10 ; * M- GDI Private and Public Shares of GDI 7 0 -_ 40 - so2 j e ~~~~~~~~4- Public % ofgdi l ~ZO o 30-10~~~~~~~~~~~~ ' - Private I11I1IPublicI

46 -36 - Brazil Investment (Percent of GDP) \\ *M 4- Public %ofgdp 1 5 NO -o- Private 1 0 ; U M- GDFI 5. 0 l l l l l l l ll l l Private and Public Shares of GDFI iOO %ofgdfi 40- NO/ A A ~~~~~~~-Public.0- Private

47 Chile Investment (Percent of GDP) 25-20~~~ 2 0 -~~~~~ * - Public %ofgdp NE 0 - Private 10 I~ GDI o~ ~ Private and Public Shares of GDI ~~~~~~~~~~~ ~~-- Public %ofgdi 0V --- o 40 A * 0- Private 30 N 20 0 I..._

48 Colombia Investment (Percent of GDP) w-~~ Z A *-- > ~ 0-- Public %of GDP Private 10 =-- GDI 5 0O l llll l : l l ll l Private and Public Shares of GDI ' of 40;\~0~~0\ GOt *- Public