Asia needs to invest more in infrastructure projects
05 Sep '06
2 min read
Developing Asia must invest more in infrastructure projects if the region's economies are to sustain growth and spread its benefits more widely, an Asian Development Bank (ADB) Vice President told a meeting in Hong Kong, China.
“Adequate, modern and well maintained systems of transportation, energy, sewer and water, telecommunication and other essential services are the backbone of today's economies,” Vice-President C. Lawrence Greenwood said.
“Such networks are vital to provide access to local and global markets, support for private sector development, and opportunities for citizens – especially those in poor and remote communities – to participate in economic growth and improve their standard of living.”
He was speaking at the Asia Pacific Infrastructure Congress on Sustaining Growth Through Infrastructure Investment that opened today.
At the meeting, Mr. Greenwood pointed out that a recent joint study noted that East Asia alone would need $1 trillion in infrastructure investment over five years to sustain projected growth rates. While some governments are recognizing these demands and boosting spending, public funds are under serious strain.
“Private sector participation, including foreign investment, is needed to meet these enormous needs," he said. "And it is not only a matter of financing – infrastructure needs to be made more efficient and cost-effective.”
He said governments and the private sector have both learned lessons from the Asian financial crisis in the late 1990s, when infrastructure investment dropped dramatically in the region.
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