pedestrian bridge in detroit Kenneth Raymond/Getty Images

Checks and Balances Before Roads and Bridges

In the 2016 American presidential election, Hillary Clinton and Donald Trump agreed that the US economy is suffering from dilapidated infrastructure, and both called for greater investment in renovating and upgrading the country’s public capital stock. But infrastructure gaps are an even more urgent problem in the rest of the world.

WASHINGTON, DC – In the 2016 American presidential election, Hillary Clinton and Donald Trump agreed that the US economy is suffering from dilapidated infrastructure, and both called for greater investment in renovating and upgrading the country’s public capital stock. Now that the Trump administration is preparing its first budget outline, its initiatives in this area will be a central focus of attention.

The United States is not alone. In fact, infrastructure gaps are an even more urgent problem in the rest of the world. Other advanced economies also need to revive moribund investment, and emerging economies need to prepare for population growth, increased consumption, and higher demand for transportation spending.

Initiatives adopted in the aftermath of the 2008 global financial crisis are beginning to promote infrastructure investment. In the European Union, the Juncker Plan – which draws on EU funds to help finance riskier and more innovative projects – aims to generate more than $300 billion in investment between 2016 and 2018.

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