Institutional Investment in Infrastructure in Developing Countries : Introduction to Potential Models
The link between infrastructure and economic growth is widely acknowledged -- as is the infrastructure gap, which can act as a break on growth in emerging markets and developing economies (EMDEs). Since the global economic and financial crisis, the...
| Main Authors: | , |
|---|---|
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/02/18983758/institutional-investment-infrastructure-developing-countries-introduction-potential-models http://hdl.handle.net/10986/18358 |
| Summary: | The link between infrastructure and
economic growth is widely acknowledged -- as is the
infrastructure gap, which can act as a break on growth in
emerging markets and developing economies (EMDEs). Since the
global economic and financial crisis, the challenges of
raising financing for infrastructure projects in EMDEs are
also well known. The challenges come from stretched
government finances and restrictions on global bank lending.
Hence much attention has been focused on the potential for
institutional investors as a growing potential source of
financing. This paper argues that infrastructure projects
can potentially deliver long-term returns, but investments,
particularly in EMDEs need to be carefully structured to
meet the needs of both sides. The paper first considers the
existing types of institutional investors and their
potential for filling the infrastructure financing gap. The
challenges of adjusting asset allocations, particularly
toward EMDE infrastructure, are discussed and examples of
projects where institutional investors have been involved
are given. Finally, the paper considers a range of models
for the involvement of institutional investors in EMDEs and
makes initial proposals for how to determine which model
fits best in a particular country context. |
|---|