Laying the Groundwork: Infrastructure Strategy and Development Planning in Peru and Brazil

Abstract

Peru and Brazil, two of Latin America’s most strategically significant economies, are defined by deep infrastructure gaps in transportation and agriculture—gaps that limit competitiveness, increase inequality, and constrain long-term development. This thesis explores how each country has navigated the influx of foreign infrastructure financing from China and the United States, two competing global powers with vastly different investment strategies. While China’s approach is state-led, coordinated, and risk-tolerant through the Belt and Road Initiative, the United States has responded with more fragmented, private-sector-oriented initiatives that often lack scale and consistency. Both countries have tried to leverage this geopolitical competition to meet urgent development needs, but with mixed results. Through policy analysis and qualitative interviews with government officials, development experts, and economists, this thesis examines how Peru and Brazil structure their infrastructure planning institutions, negotiate foreign investment, and attempt to align outside capital with domestic priorities. It highlights how Peru’s weak planning capacity and political instability have left it more reliant on external actors, while Brazil has developed stronger internal institutions but still struggles with coordination and long-term vision. Ultimately, the thesis argues that building internal state capacity and coherent infrastructure strategies is essential for both countries to achieve sustainable, sovereign development. The final chapter provides targeted policy recommendations to improve foreign investment negotiations, strengthen domestic institutions, and make infrastructure a tool for national progress—not external dependence.