Infrastructure around the Globe
As the world economy shows tentative signs of recovery, bold infrastructure plans are being finalised to spur on growth and improve countries’ global competitiveness, says Malcolm Bairstow.
I
nfrastructure is the lifeblood of thriving, prosperous economies. Well planned and well executed infrastructure investments help to provide for a developing economy’s most basic needs, such as sanitation, power and transportation, as well as enabling successful manufacturing, energy and agricultural sectors. Infrastructure projects are attractive investments for governments due to the multiplier effect of short- term demand and job creation, and longer-term growth in specialist skills and attractiveness for foreign investors. In order to meet the needs of both stable and rapidly growing economies, $57 trillion will need to be invested in infrastructure in
global population, which is set to reach 9.6 billion by 20502
the period from 2013 to 2030.1 The is at an
unprecedented rate, prompting planners to integrate transport, water and utilities systems in growing cities. Climate change and de-carbonisation targets lay a significant challenge at the feet of all countries, requiring them to innovate in the fields of engineering and construction to satisfy the demands of environmental, social and political leaders. Investments need to be made all over the world. Much of the developed world will have to upgrade or replace large swathes
66 GLOBAL OPPORTUNITY 2014 | ISSUE 01
of its crumbling infrastructure, while developing countries build sophisticated railways, highways and ports for the first time, as their global trading power and domestic prosperity increase.
Look to emerging markets In order to meet the energy, food
and water demands of growing populations, emerging economies must increase their capacity to import or produce critical resources. India is confronting the challenge of supplying constant, clean power to a country of 1.2 billion people, as it becomes more technologically advanced. Thirty-one percent of its infrastructure investment will come in the power sector, as elaborated in its 12th Five-Year Plan.
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INFRASTRUCTURE OVERVIEW
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