Debate over the relative roles of the state and the private sector was current in Latin America throughout the twentieth century and, especially, since the 1980s, stimulated by the impact of the international debt crisis. The end of the century was marked by a new paradigm based on a different role for the state and new ways in which both parties – the state and the private sector – could get together to undertake investment projects and supply public goods.

In some countries the role of the state as ‘regulator’ was now preferred to that of ‘entrepreneur’ and thus there emerged a wave of privatisation of state companies, particularly in the energy, utilities and banking sectors. Some proceeded more quickly than others, depending on the political conditions; some went slowly. But all of them worked out ways to enhance the role of the private sector as an engine to speed up economic development. And, of course, there was intense political and ideological public debate when a new company was offered to private investors, or when a new collaboration mechanism between the two parties was proposed. The debate has continued in the twenty-first century. In Colombia, for instance, one state-owned enterprise was privatised at the beginning of 2016 – a national power generation company – in the middle of a very acrimonious political debate which came at a high price for the president of the country.

The change to liberalised economies in Latin America was very positive for the development of the region, as is demonstrated by Mauricio Font's book, The State and the Private Sector in Latin America. The investment figures are clear: ‘Between 1990 and 2003, more than US$380 billion public–private investment went to Latin America and the Caribbean, but this seemingly impressive figure fell short of what was needed to lower transportation and transaction costs and become more competitive’ (p. 10). This figure could not have been predicted before 1990, when Latin America was relatively closed to foreign investment. Yet, with insufficient previous investment, transport infrastructure continues to demand very high levels of investment; but the existing backwardness imposes high logistics costs and restricts the increase in exports out of the region.

In the environment surrounding the development of Latin America since 1990, the behaviour of transnational actors and the performance of the international economy are very important. They also make heavy demands on the macroeconomic management and on the private- and public-sector actors of the different countries. For policy makers it was evident, in 1990, that fiscal constraints made it very difficult for the state to undertake, with its own financial resources, the construction of transport infrastructure, roads, railways, airports, ports, etc. But, according to Font, ‘need alone has not guaranteed adoption or success … State strength is a key variable in the success of both democratizing and liberalising reforms … Inadequate institutional strength often leads to disaster’ (p. 99). Partnering with transnational companies implied, then, a strong degree of trust between the array of actors involved, including the authorities of a country, the institutions – especially legal security (rule of law) considerations – and the strength of the private-sector companies that often become partners of the foreign ones.

Font's book explores and discusses all the above-mentioned issues in an orderly and systematic manner. Its aim is to clarify the extent to which the changes in Latin America of the last 25 years are sustainable and durable. He worries about possible political changes in the different countries, given Latin America's record on stability. But the book ends with a realistic view of the future, when the author recognises that, ‘in general, Latin American societies are experimenting with partnership between the public and private sectors, but this process needs to be nourished. A next big step is to expand norms, organizations and practices favoring transparency and openness, civil service development, clear property rights, and more effective rule of law to regulate interactions between economic and political actors’ (p. 184).

The book analyses four cases of reform – in Chile, Mexico, Argentina and Brazil – providing excellent information about the way in which each of these countries undertook reforms and expanded public–private collaboration. Each case was different from the other, given the strategies of economic development adopted and the political conditions of each country. But some general conclusions can be derived from the four cases, for instance that ‘successful cases have sustained a reform trajectory in which divestiture, concessions, and partnerships have come in that order’ and that ‘the adoption of more complex and demanding partnering programs has built on prior experience with simpler forms of public–private collaboration’ (p. 56). This is interesting. To be successful, the programmes have to build on pre-existing reform processes in a kind of a cumulative learning path.

The final chapters of the book study in detail three cases of infrastructure developments, two in Brazil (the North–South Railway or FNS, and the São Paulo rail bypass) and one in Chile (Transantiago), and assess the positive and negative elements in the execution of the projects. Again the analysis results in the importance not only of technical and economic factors but also of political leadership at the highest level and the design of the contracts between the parties involved.

Mauricio Font's book provides information and analysis up to 2014. The changes in Latin America of 2015 and 2016 originating in the fall of international commodities prices – oil, coal, copper, soy, etc. – could not be included. This change could have a negative impact on the perception of the region by transnational investors and affect private–public partnerships. If this happens, it could slow down the pace of investment in transport infrastructure in Latin America. What happens in the near future will be crucial for testing the relevance of the exhaustive work contained in this book.