Tackling persistent ebbs in infrastructure

BY ALL measures, the demand for infrastructure investment is huge. The Global Infrastructure Outlook estimates that from 2016 to 2040, US$94 trillion of infrastructure investment is needed globally, of which about US$50 trillion would be required in Asia. An investment gap of about US$15 trillion is expected based on current trends.

The benefits of infrastructure are obvious, bringing about an improvement in living standards. It gives a short-term boost to the economy through higher GDP and employment. More importantly, it lays the foundation for longer-term increase in productivity and more sustainable economic growth.

Financing for infrastructure is available from International Financial Institutions (IFIs) such as the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, as well as from national financial institutions, particularly those from Japan and China, like the Silk Road Fund, Japan International Cooperation Agency (JICA) and Japan Overseas Infrastructure Investment Cooperation (JOIN).