Tokyo, (March 31) – A newly published set of policy proposals details ways to ensure infrastructure growth that drives economic and social development while overcoming limitations in public funding, against the backdrop of increasing demands on government revenue due to the COVID-19 pandemic.
Building the Future of Quality Infrastructure provides a timely guide to promoting innovative financing of infrastructure such as transportation networks, water and sanitation facilities, and digital networks vital to realizing more resilient and inclusive economies.
The report presents recommendations based on research conducted by ADBI and other top think tank experts under the Think20 (T20), the G20’s research and policy advice network, during Japan’s 2019 G20 presidency.
The implementation benefits are potentially significant, promoting greater private sector investment, as well as long-term sustainable development in Asia and beyond.
“Budget deficits will be impacted by government spending to address the new coronavirus, making it more difficult to publicly finance infrastructure,” explained ADBI Dean Naoyuki Yoshino, co-editor of the report and former Chair of T20 Japan. “Policies that enable private project investment will become even more important for sustaining the buildup of quality infrastructure that triggers development spillover effects critical to the future of our societies.”
“In the long run, new transport infrastructure will still be needed to connect people and support trade,” Dean Yoshino continued. “Building roads and railway stations will ultimately support new businesses in surrounding areas, including small businesses, which boost jobs, economic opportunities for women, and growth.
Broadening access to clean water, electricity, and digital connectivity will also remain crucial to improving people’s quality of life. Such progress will increase tax revenues that can be utilized to attract further infrastructure investment,” he concluded.
The policy proposals highlighted in the report offer policy makers and experts guidance on enhancing infrastructure financing sustainability, rates of investment returns, and project viability.
They also provide strategies for advancing green and resilient infrastructure.
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