Infrastructure in Central, Eastern, and Southeastern Europe: Benchmarking, Macroeconomic Impact, and Policy Issues
Departmental Papers, September 28, 2020
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- Infrastructure in Central, Eastern, and Southeastern Europe: Benchmarking, Macroeconomic Impact, and Policy Issues
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Bibliographic details
- Authors: Anil Ari, David Bartolini, Vizhdan Boranova, Gabriel Di Bella, Kamil Dybczak, Keiko Honjo, Raju Huidrom, Andreas Jobst, Nemanja Jovanovic, Ezgi O. Ozturk, Laura Papi, Sergio Sola, Michelle Stone, Petia Topalova
- Published: September 28, 2020
- Series: Departmental Papers
- DOI: https://doi.org/10.5089/9781513550558.087
Overview and Objectives
- CESEE countries lag in terms of infrastructure compared to the EU15, and deficient infrastructure is often cited as a constraint to growth and convergence.
- The project aims to:
- Benchmark infrastructure in CESEE versus the EU15 across various infrastructure sectors and using different methodologies.
- Assess the macroeconomic impact of higher infrastructure investment using empirical estimates and model-based simulations.
- Analyze policy issues to maximize the impact of infrastructure investment, including enhancing public investment management, managing fiscal risks, and mobilizing private sector participation.
- Contextual note: In the context of the Covid-19 pandemic, infrastructure investment has gained policy attention as a tool to support activity in the recovery phase once the virus has been contained.
Key Findings (Benchmarking and Macroeconomic Impact)
- CESEE countries show infrastructure gaps relative to EU15 counterparts across multiple sectors (sector-specific details and methodologies are part of the full study).
- Empirical estimates and model-based simulations are used to quantify the macroeconomic impact of boosting infrastructure investment (simulation results and magnitudes are in the full report).
- Infrastructure investment is presented as an important long-standing policy issue for the region with heightened relevance during recovery planning.
Policy Issues and Recommendations
- Enhance public investment management to improve project selection, execution, and maintenance.
- Manage fiscal risks linked to large-scale infrastructure programs.
- Mobilize private sector participation, including through public-private partnerships and other mechanisms, to supplement public resources and transfer expertise.
Subjects and Keywords
- Subjects: Expenditure, Foreign exchange, Infrastructure, National accounts, Private investment, Public investment and public-private partnerships (PPP), Public investment spending, Purchasing power parity.
- Keywords: CESEE country, CESEE-EU country, Cesee-EU economy, country authorities, crowding in, DP, DPPP, Europe, Global, government investment plan, IMF staff calculation, Infrastructure, infrastructure investment, investment boom, Private investment, private sector, public investment, Public investment and public-private partnerships (PPP), Public investment spending, Purchasing power parity.
Content in this bundle
- Executive Summary