Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries
This paper examines trends in infrastructure investment and its financing in low-income developing countries
Abstract
This paper examines trends in infrastructure investment and financing in low-income developing countries (LIDCs). Following an acceleration of public investment over the last 15 years, the stock of infrastructure assets increased in LIDCs, even though large gaps remain compared to emerging markets. Infrastructure in LIDCs is largely provided by the public sector; private participation is mostly channelled through Public-Private Partnerships. Grants and concessional loans are an essential source of infrastructure funding in LIDCs, while the complementary role of bank lending is still limited to a few countries. Bridging infrastructure gaps would require a broad set of actions to improve the efficiency of public spending, mobilise domestic resources and support from development partners, and crowding in private investment.
This work is part of the ‘Macroeconomics in Low-income countries’ programme
Citations
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Daniel Gurara, Vladimir Klyuev, Nkunde Mwase and Andrea F. Presbitero, “Trends and Challenges in Infrastructure Investment in Developing Countries”, International Development Policy Revue internationale de politique de développement [Online], 10.1 2018, Online since 30 November 2018, connection on 20 January 2021. URL: http://journals.openedition.org/poldev/2802; DOI: https://doi.org/10.4000/poldev.2802
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Daniel Gurara, Vladimir Klyuev, Nkunde Mwase, Andrea Presbitero, Xin Cindy Xu, Geoffrey J Bannister (2017) Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries. IMF Working Paper No. 17/233