The International Monetary Fund published a keynote speech by Deputy Managing Director Nigel Clarke on how Latin America and the Caribbean could leverage its energy and critical minerals endowments to support economic development by building more resilient supply chains and capturing more value domestically. The speech pointed to the region’s relatively clean power mix, with renewables at about 69 percent of electricity generation, alongside its role as an energy producer with about 9.7 million barrels per day of oil production in 2024, and its importance in critical minerals, including Chile, Peru and Mexico accounting for about 37 percent of global copper mine production and the Argentina-Bolivia-Chile “lithium triangle” holding about half of global lithium resources. Clarke framed the policy agenda around three priorities: adapting to a more concentrated and fragmented global production landscape, strengthening resilience through diversification rather than closed markets, and creating an enabling environment for long-term investment. He cited IMF modeling suggesting targeted diversification can improve resilience with limited efficiency losses, and pointed to Chile’s development of LNG import capacity (Quintero operating since 2009 and Mejillones since 2010) after mid-2000s pipeline gas import curtailments as an example of reducing dependence on a dominant supplier. The speech also emphasised deeper regional integration to lower trade costs and frictions, close transport and customs infrastructure gaps, reduce non-tariff barriers and coordinate trade policy, alongside integration with global markets through comprehensive trade agreements, referencing the EU–Mercosur agreement as a step that could, over time, support higher and more diversified exports, including European Commission modeling that Mercosur exports to the European Union could rise by almost 17 percent. For investment, the speech highlighted macroeconomic stability, sustainable public finances, predictable tax systems, transparent regulation and credible institutions as conditions for scaling private investment across linked energy, mining, processing, grid and manufacturing value chains.
International Monetary Fund 2026-03-13
International Monetary Fund outlines diversification and investment priorities for Latin America and the Caribbean’s critical minerals and energy value chains
IMF Deputy Managing Director Nigel Clarke emphasized leveraging Latin America's energy and minerals for economic development through resilient supply chains and domestic value capture. Priorities include adapting to a fragmented global production landscape, promoting diversification, and fostering long-term investment. He highlighted regional integration and trade agreements, like the EU–Mercosur agreement, as vital for increasing and diversifying exports.