Abstract
To assist with the achievement of the Sustainable Development Goals by 2030, this paper develops a framework to estimate infrastructure financing needs of the Asia-Pacific least developed countries (LDCs), landlocked developing countries (LLDCs), and small island developing States (SIDS) by 2030. The framework takes into account the financing required to close existing infrastructure gaps, keep up with growing demands for new infrastructure, maintain existing infrastructure, and mitigate the vulnerability of infrastructure to climate-related risks. Based on a panel of 71 developing economies from 1990 to 2015 and the application of unit costs to the level of physical infrastructure stock projected to 2030, the required resources are estimated to amount to 8.1% of GDP per annum on weighted average, which exceeds current levels of infrastructure funding of 5–7% of GDP. The paper finds that a large proportion of financing needs in LDCs and SIDS arises from the current infrastructure shortages, particularly in the transport and energy sector, implying that provision of universal access to basic infrastructure services would require large outlays of resources. The results also suggest that LLDCs and some SIDS require over one-third of their spending to be allocated to maintenance and replacement of existing assets, while those in low-lying coastal areas face substantial long-run costs in improving infrastructure to mitigate climate change and protect them against loss and damages caused by extreme weather events. Meeting future infrastructure financing needs will require greater engagement of the private sector and other global and regional initiatives to ensure that sufficient resources can be raised for investment in infrastructure.
Highlights
The Asia-Pacific least developed countries (LDCs), landlocked developing countries (LLDCs), and small island developing States (SIDS) continue to face significant challenges and constraints in achieving inclusive growth and sustainable development
The results suggest that LLDCs and some SIDS require over one-third of their spending to be allocated to maintenance and replacement of existing assets, while those in low-lying coastal areas face substantial long-run costs in improving infrastructure to mitigate climate change and protect them against loss and damages caused by extreme weather events
The estimation results indicate that financing requirements to cover the four components from 2018 to 2030 in the Asia-Pacific LDCs, LLDCs, and SIDS would be more than $700 billion or $57.6 billion a year in 2010 dollars (Table 3)
Summary
The Asia-Pacific least developed countries (LDCs), landlocked developing countries (LLDCs), and small island developing States (SIDS) continue to face significant challenges and constraints in achieving inclusive growth and sustainable development. Such challenges and constraints are associated with remoteness; geographic features; availability of resources; demography; weather; or, most commonly, a combination of these factors. Economies 2018, 6, 43 transformation, slower development of productive capacities and heightened vulnerability to external shocks, such as those arising from volatile commodity prices, climate change, and natural disasters While each of these economies faces its own unique circumstances, they share one characteristic that applies to most developing countries—a significant deficit in physical infrastructure such as transport, energy, information and communications technology (ICT), and water supply and sanitation (WSS). Paying full regard to the critical development need, the 2030 Agenda for Sustainable Development and the Sustainable Development
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.