Physical infrastructure, such as energy, transportation, telecommunications, water, and sanitation systems, can contribute to the sustained growth of a national economy. The global economy needs as much as $93 trillion of infrastructure investment through 2030, yet many analysts suggest that global investment is lagging behind the required rate.
This paper looks at the challenges faced by rapidly growing middle income countries in financing their infrastructure, and it focuses on the two seemingly very different models employed by the governments of Brazil and India to overcome those challenges. The paper assesses both the potential benefits and drawbacks of each model and how those potential benefits translate into practice once the particular national circumstances of each country come into play.