Asia needs massive capital injection for infrastructure development
Asia needs massive capital injection for infrastructure development
Asia is facing great challenges in redressing its infrastructure gap, especially as infrastructure development is key to sustaining economic growth in the region.
United Nations Under-Secretary-General and Executive Secretary of United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), Dr Shamshad Akhtar, made the comment when speaking at a high-level United Nations dialogue in Bangkok recently.
“The financing needed to support sustainable development is enormous. Asia will need to invest as much as US$26 trillion in infrastructure by 2030,” Dr Akhtar said.
“And additional investments are needed to improve health care, education, clean drinking water and sanitation; reduce air pollution; and to support job creation in a more inclusive society. Based on this, we count on member States to take stock of the progress our region has made, and to develop a financing action-plan.”
Dr Akhtar highlighted three core priorities that have emerged. These include the need for governments to enhance their capacity to mobilise and spend public finance resources effectively and efficiently, deliver financing for sustainable and resilient infrastructure by engaging with the private sector, and enhance financial inclusion.
Lao transport officials said the standard of many roads in Laos is still below Asean standards as Laos has limited funding to build roads to the required specifications.
Roads in many Asean member countries are able to accommodate trucks loading goods at 11 tonnes per axle while roads in Laos can accommodate only 9.1 tonnes per axle.
Even national roads are paved with two layers of asphalt that are only 2-3cm thick, which is considered inferior in comparison to other Asean nations.
An independent economist, Dr Mana Southichak, said infrastructure development is key to driving economic growth in Laos.
He reiterated that poor roads can further drive up the cost of transport, hindering commercial productivity and the growth of local businesses, so it is imperative that Laos invests more in this sector.
Meanwhile a recent Asian Development Bank report said Asia needed to invest a whopping US$1.7 trillion per year in energy, transport, communications, and water supply and sanitation projects to support economic growth.
President and chair of the board of directors of the ADB Takehiko Nakao was quoted in The Kathmandu Post recently as saying “The [infrastructure] financing need for Asia is very big.”
He urged Asian countries to focus on promotion of the private sector, attainment of the Sustainable Development Goals, gender equality, development of infrastructure projects and environmental issues.
Participants at the high-level UN meeting urged for a strong collective response to address tax challenges in the region in view of the 2030 Agenda.
They emphasised the need for a broad-based Asia-Pacific platform for policy makers, tax administrators, and relevant regional and subregional organisations to promote dialogue on tax matters.
