Infrastructure Unbound

In emerging and developing economies, it is estimated that an additional $1-1.5 trillion in annual investment will be required through 2020 to meet growth targets. But simply increasing infrastructure investment is not enough to boost GDP and foster job creation.

WASHINGTON, DC – Consider a simple statistic. Every month in the developing world, more than five million people migrate to urban areas, where jobs, schools, and opportunities of all kinds are often easier to find. But when people migrate, the need for basic services – water, power, and transport – goes with them, highlighting the boom in infrastructure demand.

The reality is evident from Kenya to Kiribati – everywhere where rapid urbanization, the need to support trade and entrepreneurship, and efforts to confront the challenges of climate change have exposed a wide infrastructure deficit. And it is a deficit that confronts advanced economies as well.

Simply put, infrastructure construction and modernization worldwide needs to be part of a strategy for long-term global growth. That is why G-20 finance ministers, meeting recently for the first time this year in Sydney, Australia, singled out investment in infrastructure as one of the elements vital to ensuring a strong, sustainable, and balanced recovery.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

http://prosyn.org/k2AYBHg;
  1. abe10_TIZIANAFABIAFPGettyImages_shinzoabesmilingatcamera Tiziana Fabi/AFP/Getty Images

    The G20 in Osaka

    Shinzo Abe

    Japan is advocating a system of “Data Free Flow with Trust,” an approach that attempts to allow the free flow of data under rules upon which all people can rely. And launching DFFT is just one of four major agenda items that Japan's prime minister has in store for the group's upcoming summit.

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.