Maritime Trade and Transport - HWWI

oads in China were paved (see Chapter 3.2.2.1). 88 Until 2010, India will need $20 bn annually
for roads and rail. 89 Replacement investments will be increasing as well. To begin with,
there is still some accumulated need to take care of after – as the result of budget consolidations
in the aftermath of the Asian crisis of 1997-98 – the GDP share of investments had stagnated
at a low level. Furthermore, countries in Asia more often have to struggle with natural disasters.
The extreme strain to which the infrastructure is subjected results in higher costs for
repairs and maintenance of the quickly growing network. Until 2010, for example, southern Asia
will have to spend twice as much for the maintenance of its existing transport infrastructure
as for the construction of new facilities. 90
7.2 Who funds and how? – Forms and sources of financing
Infrastructure funding has changed appreciably in the past 15 years. In the early 1990s, 78% of
transport infrastructure was made possible by the government or through development aid. By
now, state funding only accounts for 54%. 91 The gap created by the withdrawal of state and supranational
funds is increasingly being filled by private sources. This process is supported by a
broad spectrum of private investment opportunities.
7.2.1 Supranational funding
In the foreseeable future, developing nations will continue to be dependent upon monetary
aid from the community of states. Their burden in comparison with their economic output is
considerably higher if the transport infrastructure is inadequate. 92 At the same time, due to
the more limited financial resources of these countries and poorly developed capital markets,
government funding sources are generally not able to build and maintain an adequate structure.
Three-quarters of the money for transport infrastructure thus comes from official development
agencies, 25% from private sources. Most of the aid monies is used for road construction
projects. 93 Generally speaking, however, the focus of development aid is moving
toward economic infrastructure. The share in bilateral development aid sank in the past 20
years from 19% to 13%. In 2004, only 6% of bilateral subsidies were channeled into transport
infrastructure. In the portfolio of the international organizations (World Bank, local development
banks), these investments, at an average 20%, continue to constitute a focus of appropriations.
The absolute amount, however, is decreasing, thus making it essential to tap other
funding sources to a greater extent. 94
88 In India, less than 60%, in South Korea, 80% of the roads were paved in 2002. By way of comparison,
99% of all roads in Germany are paved. See ESCAP (2006).
89 See Chatterton/Puerto (2005).
90 See ESCAP (2005).
91 See ESCAP (2006).
92 Countries with low income will have to invest an average of 6.9% of their GDP in economic
infrastructure until 2015 to keep up. In line with this evaluation, 1.3% of the GDP would have to be
put aside alone for the maintenance and expansion of the road network. See World Bank (2003).
93 See Menendez (1998), World Bank (2003). 80% of development aid from the World Bank for transport
infrastructure flows into road construction, 70% of that from the Asian Development Bank.
94 See OECD (2006b); World Bank (2004).
132 Berenberg Bank · HWWI: Strategy 2030 · No. 4