GARY G. GILBERT
Engaged in instituting a fully region-wide common market, Latin America is confronted with numerous attendant problems. foremost is the matter of how to plan at the regional (multi-country) level. One of the principal instruments acknowledged by the Latin American Chiefs of State for implementing a Latin American Common Market is an investment program of multinational scope. 1 The prevailing sentiment in the region is that multinational investment planning would provide an effective means of achieving substantial inroads to balanced regional integration.
The present study explores the problem of multi-country investment planning in Latin America. In the absence of multi-country planning, the potential benefits of a common market arrangement are likely to remain largely unrealized. Accordingly, without a clearly defined regional investment strategy, the planning process is in danger of evolving into a milieu of ad hoc investment decisions. At best, these decisions would have a tenuous relationship to one another and to integration objectives in general.
The purpose of this paper is to set forth an operational approach to multi-country investment planning for Latin America. In Section II, major investment criteria for exploiting the dynamic effects of economic integration are outlined, specifically within a Latin American regional setting. Section III evaluates alternative multi-country planning techniques, while Section IV characterizes the approach deemed most suitable for achieving Latin American____________________