Financing Growth & Infrastructure

To address the infrastructure gap from 2016 to 2030 the world needs about 3.8 % of Global GDP or 3.3 trillion a year just to support expected rates of growth. Emerging economies account for more than half of these figures.

To support G20 Argentina work on how to unleash private sector investment towards infrastructure, the B20 is discussing specific policies recommendations on developing infrastructure as an asset class, such as fostering streamline project pipelines (including planning, procurement and delivery process based on best practices), removing regulations governing pension funds and insurers -that might prevent institutional investors from allocating resources to certain asset class and countries-, as well as implementing regulations that recognize specific risk characteristics of infrastructure assets, and addressing information asymmetries by developing a standardized common framework for reporting of transaction information and performance of projects.

Furthermore, the B20 is emphasizing the necessity of improving governance and management of public-private partnerships to increase investments from the private sector using best practices. Other key recommendation focuses on narrowing the affordable housing gap through inclusionary planning adjusting land used where infrastructure can support its rigorous analytical approach, increasing industrial approaches to construction, resource efficiency and supporting financial access.

Moreover, important discussions such as further recommendations on improvements in cross-border financial regulatory cooperation are also underway.

 


CHAIR:

Img
Eduardo Elsztain
Grupo IRSA - Banco Hipotecario
“A very important aspect of the work of the B20 is its promotion of infrastructure as an asset class and the fostering of technical work to facilitate its development. This is increasingly important since modern growth is highly dependent on the transfer of new knowledge and technologies, which, in turn, is facilitated by more and better infrastructure. Therefore, the stable flow of finance for these activities is at the core of sustainable long term growth.”

DEPUTY-CHAIR:

Img
Mario Blejer
Banco Hipotecario
“A neglected aspect of infrastructure investment is its potential beneficial impact on income distribution. While conventionally measured income distribution has recently suffered clear deterioration, the distribution is more equalitarian if we look at `all encompassing´ income, that includes the inputed personal value derived from the utilization of public goods and services. This is particularly true for social infrastructure but it applies also to overall infrastructure investment given its impact on labor productivity growth and wages. Investing in infrastructure can result, therefore, in significant welfare as well as political benefits.”

 

CO-CHAIRS:

Img
José Manuel González Páramo
BBVA
"Regulatory cooperation between countries and coordinated actions will be paramount to seize new challenges that emerge from digital innovation. This will help also to contribute to a more sustainable and inclusive society."

 

Img
Fernando Lago
Cámara Argentina de la Construcción
"Technology fosters the world sustainable development. Then, it is a must to overcome regional and social inequalities and reduce poverty. Closing the increased infrastructure gap will contribute to these goals. Infrastructure will improve life quality and increase productivity. There are enough financial resources. B20 should connect needs and resources."

 

Img
Liang Dingbang
ICBC
“China has been deeply engaged in economic growth and infrastructure development in the past four decades. We hope to share the hard lessons learnt in this process and our hopes for the future in the work of this Task Force.”