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.
Infrastructure contributes to higher productivity and growth, facilitates trade and connectivity, and promotes economic inclusion. Infrastructure is also a key driver for achieving the Sustainable Development Goals. The development of electricity distribution networks through infrastructure development improves access to energy in urban and rural areas. Transport infrastructure connects people and supports trade by facilitating the movement of goods, contributing to economic growth. Water infrastructure improves health through better access to clean water and more efficient management of scarce resources.
In recognition of the benefits that infrastructure development can bring, stakeholders, including the Group of Twenty (G20) member countries, have committed to work together to provide quality infrastructure and meet the growing global infrastructure demand. The G20 believes that equal emphasis should be placed on closing the infrastructure financing gap and assuring quality infrastructure investments that boost economic activities and create positive spillover effects in neighboring communities and regions. Such infrastructure investments should also contribute to strengthening resilience against climate change, natural disasters, and disasters caused by humans.
Three major themes encompass the work presented in the Building the Future of Quality Infrastructure collection of policy briefs and the discussions held at the Think20 Summit in Tokyo in May 2019 and its associated events.
- Maximizing the impact of quality infrastructure investments by addressing the concerns of sustainability in terms of financing, the rate of return to stakeholders, and economic efficiency.
- Preserving and enhancing natural capital in the development of quality infrastructure to support the 2030 Sustainable Development Goals, the Paris Agreement, and the Aichi Biodiversity Targets.
- Developing resilient strategies for infrastructure development, especially in transport-related infrastructure.