In previous columns, I have argued that the high cost of capital in Latin America is primarily due to political risk and weak institutions. Brazil, the region’s largest economy, is one of the clearest examples.

After analyzing the cost of capital across Latin America throughout this series, one conclusion stands out: the region’s high financing costs are not a fixed condition. They stem from policy decisions and persistent structural weaknesses—factors that can be improved over time.

Latin America's future growth will depend not only on politics or commodity prices, but also on a less visible yet equally decisive factor: the cost of capital.

Infrastructure is the backbone of any economy that aspires to grow sustainably. Roads, ports, dams, and canals require long-term capital. They require a large amount of capital and, above all, capital at a reasonable cost.

Every loan a bank grants—whether to a farmer, a small business, or a family buying a home—starts with a fundamental question: How much does it cost the bank to raise funds? That cost influences the loan’s interest rate, the bank’s willingness to grant it, and the amount of financing that flows into the real economy.