Infrastructure Financing Modalities in Asia and the Pacific: Strengths and Limitations

Abstract

Asia and the Pacific is the world’s fastest growing regional economy, a position it has held for over a decade. A major challenge for sustained regional growth and development and ensuring greater engagement between national economies is increased investment in economic and social infrastructure. The majority of infrastructure is provided by government as a quasi-public good but governments face difficulties meeting future demand. Private investment provides an important option although investment has mainly taken place in the telecommunications, energy, and transport industries. The objective of this paper is to present a status report about the methods, strengths, and weaknesses of infrastructure financing in Asia and the Pacific at the present time. It adopts a positivist perspective and examines supply and demand conditions today with several recommendations for future policy development in Asia and the Pacific.