ABSTRACT
Global infrastructure investment needs are estimated by the OECD at about 2.5 percent of world GDP per year in the coming 20 years in the areas of electricity transmission and generation, surface transport (roads and rail), telecoms, and water. Estimates could rise to some 3.5 percent of world GDP if additional energy-related investments (such as oil, gas, and coal) are taken into account. In the developing world, rapid urbanization requires increased public investment in water, sanitation, transport, and urban amenities to meet the needs and demands of a growing urban population and to deliver on MDG commitments. Rising incomes in emerging-market economies create demands for addressing deficiencies in provision, upgrading existing infrastructure, and improving access to the underserved population. The need to replace and update ageing infrastructure, and to maintain competitiveness in international markets in an increasingly tight budgetary environment poses challenges for governments in mature economies to provide and finance infrastructure. At the same time, technological change affects the nature of, and scope for, government provision of infrastructure services in developing, emerging-market, and mature economies alike.
