Infrastructure Gap in South Asia : Infrastructure Needs, Prioritization, and Financing

If the South Asia region hopes to meet its development goals and not risk slowing down or even halting growth, poverty alleviation, and shared prosperity, it is essential to make closing its huge infrastructure gap a priority. Identifying and addressing gaps in the data on expenditure, access, and quality are crucial to ensuring that governments make efficient, practical, and effective infrastructure development choices. This study addresses this knowledge gap by focusing on the current status of infrastructure sectors and geographical disparities, real levels of investment and private sector participation, deficits and proper targets for the future, and bottlenecks to expansion. The findings show that the South Asia region needs to invest between US$1.7 trillion and US$2.5 trillion (at current prices) to close its infrastructure gap. If investments are spread evenly over the years until 2020, the region needs to invest between 6.6 and 9.9 percent of 2010 gross domestic product per year, an estimated increase of up to 3 percentage points from the 6.9 percent of gross domestic product invested in infrastructure by countries in the region in 2009. Given the enormous size of the region's infrastructure deficiencies, it will need a mix of investment in infrastructure stock and supportive reforms to close its infrastructure gap. One major challenge will be prioritizing investment needs. Another will be choosing optimal forms of service provision, including the private sector's role, and the decentralization of administrative functions and powers.

Bibliographic Details

Main Authors:	Andres, Luis, Biller, Dan, Herrera Dappe, Matias
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-09
Subjects:	ACCOUNTING, AGGLOMERATION, AGGLOMERATION EFFECTS, AGRICULTURE, AIRPORTS, BARRIERS TO ENTRY, BENCHMARK, BENCHMARKING, BOTTLENECKS, BRIDGE, CLIMATE CHANGE, COMPARATIVE ADVANTAGE, COMPETITIVE ADVANTAGES, CONCESSION, CONCESSION PROJECTS, CONCESSIONS, CONSUMER WELFARE, CONSUMPTION INCREASES, CONTRACTUAL ARRANGEMENTS, COST RECOVERY, COST-BENEFIT ANALYSIS, DECENTRALIZATION, DECISION MAKING, DEFICITS, DEMAND FOR INFRASTRUCTURE INVESTMENT, DEREGULATION, DEVELOPMENT POLICY, DIESEL, DISTRIBUTION GRID, DIVESTITURE, DONOR AGENCIES, DRIVING, ECONOMETRIC MODELS, ECONOMIC BENEFITS, ECONOMIC CHARACTERISTICS, ECONOMIC DIMENSION, ECONOMIC GROWTH, ECONOMIC GROWTH RATES, ECONOMIC LOSS, ECONOMIC MODELS, ECONOMIC SECTORS, ECONOMIC STRUCTURE, ECONOMICS, ECONOMIES OF SCALE, EFFICIENCY OF INFRASTRUCTURE, ELASTICITY, ELECTRICITY, ELECTRICITY DISTRIBUTION, ELECTRICITY GENERATION, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ENTRY BARRIERS, EXTERNALITIES, FINANCIAL BURDEN, FINANCIAL CLOSURE, FINANCIAL OPTIONS, FOSSIL FUELS, FREIGHT, FREIGHT TRANSPORT, GASOLINE, GDP, GDP PER CAPITA, GROSS DOMESTIC PRODUCT, GROWTH MODEL, GROWTH RATE, GROWTH RATES, HIGHWAY, HUMAN CAPITAL, INCOME, INCREASING RETURNS, INCREASING RETURNS TO SCALE, INFRASTRUCTURE ASSETS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENT PROJECTS, INFRASTRUCTURE INVESTMENTS, INFRASTRUCTURE PERFORMANCE, INFRASTRUCTURE PERFORMANCE INDICATORS, INFRASTRUCTURE PROJECTS, INFRASTRUCTURE PROVISION, INFRASTRUCTURE SECTOR, INFRASTRUCTURE SERVICES, INFRASTRUCTURES, INTERNATIONAL ENERGY, INTERNATIONAL TRADE, INTERSTATE TRANSPORT, INVESTMENT CLIMATE, INVESTMENT COSTS, INVESTMENT REQUIREMENTS, INVESTMENT TARGETS, JOINT VENTURE, LEASE CONTRACT, LOCAL GOVERNMENTS, MAINTENANCE COSTS, MAINTENANCE OF INFRASTRUCTURE, MARKET ACCESS, MOBILITY, MOTOR VEHICLES, NATIONAL GOVERNMENTS, NATIONAL TRANSPORT, NATURAL MONOPOLY, NATURAL RESOURCES, NEGATIVE EXTERNALITIES, NETWORK EXTERNALITIES, NETWORK PLANNING, OPEN ACCESS, ORGANIZATIONAL FORM, ORGANIZATIONAL STRUCTURE, OUTSOURCING, PARTIAL DIVESTITURE, POLITICAL ECONOMY, POLLUTION, POOR HOUSEHOLDS, PORT AUTHORITY, POWER, POWER DISTRIBUTION, POWER PLANTS, POWER SECTOR, PRICE REGULATION, PRIVATE OPERATORS, PRIVATE SECTOR, PRIVATE SECTOR INVESTMENT, PRIVATE SECTOR INVESTMENTS, PRIVATE SECTOR PARTICIPATION, PRIVATE VEHICLE, PRIVATIZATION, PUBLIC, PUBLIC CONTRACTS, PUBLIC FUNDS, PUBLIC GOODS, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC RESOURCES, PUBLIC SAFETY, PUBLIC SECTOR, PUBLIC SECTOR INVESTMENT, PUBLIC SPENDING, PUBLIC TRANSPORT, PUBLIC UTILITIES, RAIL, RAIL NETWORK, RAILWAYS, REGIONAL INFRASTRUCTURE, REGULATORY FRAMEWORK, RENTS, RETURNS TO SCALE, ROAD, ROAD NETWORK, ROAD NETWORKS, ROAD SECTOR, ROADS, SAFE WATER SUPPLY, SALES TAXES, SANITATION, SANITATION INFRASTRUCTURE, SERVICE PROVIDERS, SHADOW TOLLS, SLUMS, SOCIAL WELFARE, SOLID WASTE COLLECTION, STATE HIGHWAYS, STOCKS, STRUCTURAL CHANGE, TAX, TAX REVENUES, TELECOMMUNICATIONS, TERMINAL OPERATORS, TOLLS, TOTAL FACTOR PRODUCTIVITY, TRANSFER OF OWNERSHIP, TRANSMISSION LINES, TRANSPORT, TRANSPORT ACCESS, TRANSPORT INFRASTRUCTURE, TRANSPORT INVESTMENT, TRANSPORT INVESTMENTS, TRANSPORT SECTOR, TRANSPORT SERVICES, TRANSPORTATION, TRANSPORTATION INFRASTRUCTURE, TRANSPORTATION NETWORKS, TRANSPORTATION SYSTEM, URBAN HIGHWAY, URBAN POVERTY, URBAN SPRAWL, URBANIZATION, USER CHARGES, VALUATION, WATER SERVICES, WEALTH,
Online Access:	http://documents.worldbank.org/curated/en/2014/09/20210647/infrastructure-gap-south-asia-infrastructure-needs-prioritization-financing http://hdl.handle.net/10986/20327
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