SANTIAGO, Chile Though it took Latin America a little bit of time to step up to the plate when it comes to foreign direct investment (FDI), over the last decade it has somehow come to be the one and only fountain of capital flows, while other sources, such as securitization, remain stagnant.

FDI, although controversial at times, has been an increasingly hot trend over the past few decades and seems to have become "the only game in town," according to IDB sources. At the same time, other forms of capital flows are sluggish.

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