G20 china_web

Investing in infrastructure
KEY TAKEAWAYS
Markets are increasingly uncertain
because of geopolitical tension
Private sector involvement is critical
to improving standards of living
Multilateral
development banks
commit to growth
By increasing its investments in infrastructure, the
private sector is helping spur economic recovery,
writes Sir Suma Chakrabarti
When Chinese President
Xi Jinping announced
China’s priorities for its
2016 G20 presidency, he
spoke of an “innovative,
invigorated, interconnected and inclusive
world economy”. This vision aligned
perfectly with the new global development
agenda that had just been adopted by the
international community at the United
Nations General Assembly.
It is also a goal shared by the European
Bank for Reconstruction and Development
(EBRD), which strives to reinvigorate the
transition in emerging economies by
building up economic resilience, promoting
integration, and addressing global and
regional challenges.
This year, economic cooperation has
grown between the EBRD and China, which
became its 67th member in January. The
EBRD also deepened ties with the Asian
Infrastructure Investment Bank (AIIB). As
we look ahead to the G20 summit that China
will host in Hangzhou in September, the
realisation of President Xi’s vision is clearly
gaining importance by the day.
A sustained recovery from the worst
global downturn in more than half a century
remains elusive. Markets are increasingly
uncertain because of recurring bouts of
geopolitical tension.
$1.5TR
is the estimated annual infrastructure
gap for the next 15 years
Upgrading roads in Albania with the support
of the EBRD, the EU and the EIB
The EBRD and its fellow multilateral
development banks (MDBs) are committed
to getting the world back on a path to
growth. We aim to do this by delivering a
higher quality of life and greater prosperity
in fairer societies to people throughout the
countries where we work.
I am convinced that together we
can make a difference. By providing
the infrastructure that oils the wheels
of commerce and transport, we can
improve the standard of municipal services
received by millions of citizens in our
countries of operations.
Minding the gap
The infrastructure gap in the developing
world is estimated at an almost
unfathomable $1.5 trillion annually over
the next 15 years. This shortfall includes
spending on all-important highways
linking cities, countries and regions;
ports and airports; modern, safe and
comfortable urban transport systems
and drinkable water supplies.
Government funding will not cover this
gap and financing from MDBs is limited.
MDBs play a critical role in helping to
tap into funds in the private sector and
creating a larger pool of finance. They
can deliver the private sector involvement
critical to improving standards of
130 G20 China: The Hangzhou Summit • September 2016 G7G20.com