Beyond Keynesianism : Global Infrastructure Investments in Times of Crisis

As the world recovers only slowly from the 2008 financial crisis and Europe is facing a looming debt crisis, concerns have increased that the "new normal" -- a period of high unemployment, low returns on investment, high risks, and low growth -- may become protracted in advanced economies. If growth remains weak, unemployment rates and debt levels will be slow to recede. Consequently, the global recovery may continue to be fragile for years to come. What the world needs now is a growth-lifting strategy. This strategy could take the form of a global infrastructure initiative. Since debt levels are high, governments in the United States and Europe could increase demand and support growth through investments in bottleneck-releasing infrastructure projects that are self-financing. An infrastructure initiative should, however, go beyond the borders of advanced countries and include developing countries. Economic and social returns to infrastructure investments tend to be high in developing countries, which have become increasingly important drivers of global growth. At the same time, infrastructure investments require capital goods, most of which are produced in high-income countries. Scaling up infrastructure investment in developing countries could therefore help generate a virtuous cycle in support of a global recovery.

Bibliographic Details

Main Authors:	Doemeland, Doerte, Lin, Justin Yifu
Language:	English
Published:	2012-01-01
Subjects:	ACCOUNTING, ACCOUNTING STANDARDS, ACID RAIN, AGGLOMERATION ECONOMIES, AIRPORTS, BALANCE SHEET, BALANCE SHEETS, BANK GUARANTEE, BANK LOANS, BANKING CRISES, BOND, BOND ISSUANCES, BOND MARKETS, BOTTLENECKS, BRIDGE, BUDGET CONSTRAINT, BUDGET CONSTRAINTS, BUDGETARY FRAMEWORK, BUSINESS CYCLE, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL MARKETS, CAPITAL STOCK, CARBON EMISSIONS, CONTINGENT LIABILITIES, COUNTRY RISK, COUNTRY RISKS, CREDIT SPREADS, CREDITOR, CREDITORS, CREDITWORTHINESS, DEBT, DEBT BURDEN, DEBT CRISIS, DEBT LEVELS, DEBT SERVICE, DECENTRALIZATION, DEFAULT RISK, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DISBURSEMENTS, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKET, DOMESTIC CAPITAL MARKETS, DOMESTIC CURRENCY, DRIVERS, ECONOMIC DEVELOPMENT, ECONOMIES OF SCALE, ELASTICITY, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET ECONOMIES, EMERGING MARKETS, ENVIRONMENTAL COSTS, ENVIRONMENTAL DAMAGES, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL PROTECTION AGENCY, EQUITY FUND, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORTERS, EXTERNAL BORROWING, FINANCE INFRASTRUCTURE, FINANCES, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL STABILITY, FINANCIAL STRESS, FISCAL POLICY, FORECLOSURES, FOREIGN CURRENCY, FOREIGN INVESTMENTS, FOSSIL FUEL, FOSSIL FUEL ENERGY, FUEL, GLOBAL CLIMATE CHANGE, GLOBAL MARKETS, GLOBAL TRADE, GOVERNMENT BONDS, GOVERNMENT BUDGETS, GOVERNMENT DEBT, GOVERNMENT GUARANTEES, GOVERNMENT SPENDING, HIGH TRANSPORT, HIGHWAY, HIGHWAY ACT, HIGHWAY ADMINISTRATION, HIGHWAYS, HOST COUNTRIES, HOUSEHOLD INCOMES, HUMAN CAPITAL, INCOME LEVELS, INFLATION, INFLATION RATES, INFLATIONARY EXPECTATIONS, INFRASTRUCTURE BONDS, INFRASTRUCTURE COSTS, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE FINANCE, INFRASTRUCTURE FINANCING, INFRASTRUCTURE FUNDING, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INFRASTRUCTURE PROJECTS, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSURANCE, INSURANCE COMPANIES, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BOND, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL INVESTORS, INTERNATIONAL ROAD FEDERATION, INTERSTATE HIGHWAY SYSTEM, INVESTING, INVESTMENT HORIZON, INVESTMENT IN ROADS, INVESTMENT OPPORTUNITIES, INVESTMENT RISKS, INVESTMENT SPENDING, INVESTMENT STRATEGY, INVESTOR BASE, ISSUANCES, LAND TRANSPORT, LEGAL FRAMEWORK, LIABILITY, LIQUID ASSETS, LIQUIDITY, LOAN, LOAN GUARANTEES, LOCAL BANKS, LOCAL ECONOMY, LOCAL GOVERNMENTS, LONG-TERM INVESTMENTS, LONG-TERM INVESTORS, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MARKET SHARE, MASS TRANSIT, MONETARY POLICY, MULTILATERAL LENDERS, NATIONAL INFRASTRUCTURE, NATURAL DISASTERS, PENSION, PENSION FUNDS, POLICY RESPONSE, POLITICAL RISK, POPULATION DENSITY, PORT FACILITIES, PORTFOLIO, PORTFOLIOS, PRIVATE CAPITAL, PRIVATE EQUITY, PRIVATE FINANCE, PRIVATE FINANCING, PRIVATE INVESTMENT, PRIVATE INVESTMENTS, PRIVATE INVESTOR, PRIVATE INVESTORS, PRIVATE PARTIES, PUBLIC BANKS, PUBLIC DEBT, PUBLIC FUNDS, PUBLIC INVESTMENT, PUBLIC PARTNERSHIPS, PUBLIC SAVING, PUBLIC TRANSPORTATION, PUBLIC WORKS, RAILWAYS, RATES OF RETURN, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REINVESTMENT, REPAYMENT, REPAYMENTS, RETURN, RETURNS, RETURNS ON EQUITY, RISK AVERSION, RISK OF DEFAULT, ROAD, ROAD IMPROVEMENTS, ROAD MAINTENANCE, ROAD SYSTEM, ROADS, RURAL ROADS, RURAL TRANSPORT, SANITATION, SECONDARY MARKET, SECONDARY MARKET ACTIVITY, SHORT MATURITIES, SHORT-TERM INSTRUMENTS, SOCIAL CAPITAL, SOVEREIGN DEBT, SOVEREIGN DEFAULT, STOCK MARKETS, STOCKS, TAX, TAX COLLECTION, TELECOMMUNICATIONS, TRADE BALANCE, TRADING, TRANSACTION, TRANSACTION COSTS, TRANSIT SYSTEMS, TRANSPORT COSTS, TRANSPORTATION, TRANSPORTATION EQUIPMENT, TRIP, TRUCKS, TRUE, VEHICLE, WATER POLLUTION, WEALTH, YIELD CURVE,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120110085008 https://hdl.handle.net/10986/3225
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