Public investment, its crisis and prospects

Abstract

ANALYZES THE CRISIS IN PUBLIC INVESTMENT AS A RESULT OF STRUCTURAL ADJUSTMENT MEASURES. ACCORDING TO THE AUTHOR, PUBLIC INVESTMENT IN CENTRAL AMERICA HAS DEVELOPED ON THE BASIS OF FINANCING FROM TAX REVENUES AND FOREIGN DEBT. THIS EXPLAINS WHY IT HAS GONE HAND IN HAND WITH THE GROWTH OF EXTERNAL CREDIT AND THE DEVELOPMENT OF THE STATE APPARATUS. HENCE, WHEN THE CREDITOR COUNTRIES LIMITED THE FLOW OF CREDIT AND THE FISCAL DEFICIT DEEPENED, PUBLIC INVESTMENT AUTOMATICALLY ENTERED INTO CRISIS, THUS JUSTIFYING ITS ACCELERATED PRIVATIZATION OR DISMANTLING.