Developing Asia needs to invest more than 5 pc of GDP over next decade for infrastructure

Manila [Philippines], Oct 29 (ANI): Developing Asian countries need to invest more than five per cent of their gross domestic product (GDP) over the next decade to be able to meet the infrastructure needs of their fast-growing economies, according to a newly-launched book co-published by the Asian Development Bank (ADB).
The book titled 'Infrastructure Financing in Asia' and edited by ADB Vice-President for Knowledge Management and Sustainable Development Bambang Susantono, says many -- if not most -- of the countries in the Asia and Pacific region are currently investing less than the proposed five per cent of GDP for infrastructure development.
At this rate, financing infrastructure to maintain and sustain economic growth and development will be a tough challenge.
"Developing Asia must strive to find new, innovative, outside-the-box financing solutions to meet its huge infrastructure investment needs. I am confident that this rich collective volume prepared by experts from inside and outside ADB will set forth some concrete and specific directions for infrastructure financing, as well as provide food for thought," said Susantono at the book launch on Tuesday.
An ADB report has estimated that infrastructure needs in developing Asia and the Pacific will exceed 22.6 trillion dollars through 2030, or 1.5 trillion dollars per year. The estimates rise to over 26 trillion dollars, or 1.7 trillion dollars per year, when climate change mitigation and adaptation costs are incorporated.
To address this challenge, the book offers a variety of policy approaches, such as wide-ranging public finance and institutional reforms to create a stronger enabling environment for public-private partnerships. It provides out-of-the-box solutions in the form of tax financing, mass transit investments, and smart energy grids investments to help meet the infrastructure financing gap.
The book explores alternative financing methods to unlock long-term funding from institutional investors and offers mechanisms to deepen the region's bond markets. It also examines the use of green bonds to finance sustainable growth in Asia.
The book, co-published by World Scientific, documents the evolution of Asia and the Pacific's infrastructure over the past 50 years and reviews the pivotal role of infrastructure in supporting the region's robust growth and social development. It is co-edited by ADB Principal Economist Donghyun Park and Economist Shu Tian. (ANI)