The Asian Development Bank Institute published a new set of policy recommendations developed during the work of T20 Japan – the research and policy advice network for the G20. An international team headed by the DOC Research Institute contributed with a chapter “Economic Effects of Infrastructure Investment from the Land-based Financing”.
During Japan’s leadership in the G20, DOC cooperated with T20 within the framework of Task Force 4: Economic Effects of Infrastructure Investment and its Financing. This task force was focused on ways of developing quality infrastructure investments that consider financial, climate, and urban planning challenges. The policy recommendations were discussed at the Global Solution Summit in Berlin and T20 Summit in Tokyo, and key recommendations were included in the final document which was passed to Japanese Prime Minister Abe Shinzo and G20 leaders.
Introducing the Building the Future of Quality Instructure ADBI Dean Prof. Naoyuki Yoshino, co-editor of the report and former Chair of T20 Japan highlighted “Budget deficits will be impacted by government spending to address the new coronavirus, making it more difficult to publicly finance infrastructure. 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. 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.”
Infrastructure as the Backbone of Global Inclusive Development is a DOC research topic which focuses on the development of quality, reliable, sustainable and resilient infrastructure, including regional and cross-border infrastructure. The emergence of infrastructure projects as a distinct asset class in the financial sector is a clear indicator of the post-crisis gradual shift of the interest from meaningless speculative “paper” investments to real-assets-with-real-impact.
Dr. Vladimir Yakunin noted in particular, “Special attention should be paid to the fact that infrastructure investments are not a monetary ‘black hole’. They in fact have a wide range of positive effects from the very beginning of project implementation, such as job creation, local industry development, increased tax revenues, and requests for new educational services and skills. All of these positively affect the social wellbeing of a society and region.”
A full set of policy recommendations on “Building the Future of Quality Infrastructure” can be downloaded free by the link.
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