Well thought-out investment planning helps raise economic growth; WB
Business Desk :
Well thought-out investment planning helps raise economic growth rates, increases competitiveness, offers new economic opportunities, and bolsters improvements in human capital, said a new World Bank report.
The report addresses need to better understand current levels of infrastructure quantity and quality.
The report presents data about infrastructure provision in three key sectors is Asia: road transport, electricity, and water and sanitation.
As the first comprehensive, regional stock-taking of levels of supply, quality, and affordability of infrastructure services, the report said Infrastructure in Asia underscores the need to better understand current levels of service delivery to facilitate governments' infrastructure planning and financing.
It said building a more extensive body of knowledge about the health of infrastructure provision worldwide is a priority for the World Bank.
Infrastructure in Asia is the first step of a new research effort that will expand to other regions. The report is organized to provide regional overviews by sector, followed by country snapshots.
Over the past few decades, a large part of Asia (both East Asia and South Asia) has enjoyed strong economic growth and steady social development.
Nevertheless, the region faces significant constraints in infrastructure investment. This is exacerbated by Covid-19 pandemic and the short-term challenges of a slowing global economy, higher borrowing costs, and geopolitical tensions.
The report said longer-term, the region is highly susceptible to the effects of climate change, so infrastructure development must be sustainable and climate resilient.
Imad Fakhoury, Global Director for Infrastructure Finance, PPPs & Guarantees at the World Bank, underscored two crucial points in this context, "We must focus on smarter investments. This doesn't necessarily mean spending more money, but harnessing technology, Infratech, and building efficiencies based on data so we can do more with less."
He continued, "We also need better 'infrastructure governance'-including strengthening policies, insitutions and investments, better planning, robust project preparation, investment prioritization, screening to decide whether to procure a project publicly or with private-sector support, and strong attention to resilience, quality, transparency and fiscal sustainability."
He also said this is crucial for accerating move towards resilient recovery stage as part of COVID-19 crisis response and rebuilding better."
When it comes to building infrastructure that truly delivers economic and social impact, quality is as important as coverage. Governments worldwide and their development partners increasingly recognize the importance of resilience and quality in infrastructure service delivery.
The report also highlighted infrastructure in Asia goes beyond appraising coverage levels to provide a set of key indicators that serve as proxies of multiple dimensions of infrastructure quality.
In addition to looking at the quality dimensions of infrastructure, the report's signature contribution is its compliation of extensive and disparate information and data-otherwise time-intensive to gather and compare across sectors and countries-into a single volume.