Study on the Natural Monopoly and Government Regulation in the Infrastructure - the Case of Latin America

In last century, the "Washington Consensus" has advocated some liberal reforms in some developing countries. In Latin America, the deregulation and the privatization reform of the department of the infrastructure have failed, which declare the failure of the "Washington Consensus". Theoretically, it is difficult to push the infrastructure to marketizational reform simply, because of its natural monopoly and its scale economies. While the traditional development mode of the state-owned capital led to rigidification of its operating mechanism. In this article, it used the case of the infrastructure in Latin America, we want to get a balance of strong-regulation from its nature monopoly and the loose-regulation from its marketization reform. It also uses the method of the industrial policy, gives the suggestion of using the functional industrial policy to improve its international competitiveness.