At the time of IIRSA’s constitution, the MERCOSUR-Chile hub accounted for the single largest share of investment, and the estimated totals have only grown since then. This hub has an area of 3.1 million km2 and encompasses the whole of Uruguay, central Chile, central and northeastern Argentina, southern Brazil, and southeastern Paraguay. It has an estimated population of 126 million inhabitants. The average density is almost 41 inhabitants per km2, which is a relatively high figure given the hub’s geographical size. This is because the hub covers one of the most urbanized regions in the world, including the metropolitan areas of Santiago and Buenos Aires, as well as major cities in southern Brazil.
IIRSA finds enormous developmental potential in this hub. With a population equivalent to 48% of the region’s inhabitants, it generates close to 70% of South American economic activity (approximately US$ 500 billion a year). It is the main industrial center of South America, and has many high value-added industries (aeronautical, automotive, metal-mechanics, petrochemical, agro-industrial, construction material, etc.). Furthermore, it articulates several of the world’s most productive agricultural territories (grain, coffee, soybean, fruit, livestock, etc.).
The MERCOSUR-Chile hub currently contains 70 IIRSA projects, divided into 5 project clusters. At the time of IIRSA’s creation, the total estimated cost of the projects in the hub was $12.1 billion. The project clusters contain a large number of multi-modal transport and energy projects.
While recognizing the opportunities inherent in sustained economic growth, CSOs in the region are also concerned with the spread of urban poverty, and will likely push for increased civic participation in decision-making around investments (as by strengthening labor unions), improved transparency in business dealings, and stronger environmental regulations in the face of growing industrial and agricultural pollution.