State and Sector Reform is not included in IIRSA’s list of official sectoral processes. Nevertheless, the substantial reform of policies and regulations relating to the financing, construction, and maintenance of large-scale infrastructure projects is a recurring theme in the Initiative, to the point where such reform could be seen as its own sector. In all cases, much emphasis has been put on discrepancies and imbalances in the regulatory frameworks of the participating countries and on the need to harmonize such frameworks.

Since IIRSA’s backers require sizable participation from private financiers to turn their project proposals into reality, considerable attention has been paid to the types of reforms that would be needed to create the “right” conditions for private investment. This encompasses everything from creating supranational entities to coordinate investments (as in the case of the Regional Infrastructure Authority) to the streamlining of bidding and procurement rules. Such changes would inevitably dovetail with processes already underway at the national level to attract foreign capital and “enhance competitiveness,” such as privatizing public-sector enterprises, reforming tax codes, downsizing federal budgets, restructuring public debt, and so on.

With specific regard to the construction and operation of infrastructure projects, the types of reforms that might be needed are different from sector to sector and hub to hub. The following are just a few examples of the reforms called for in IIRSA documents:

• harmonization of regulations governing international maritime trade
• creation of a regulatory framework promoting competition and free trade in energy services provision
• enhancement of institutional capacity in the telecommunications sector