{
  "title": "Public Roads with Private Money: A Way Ahead",
  "publication": "IMF Blog, February 29, 2016",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2016/02/29/public-roads-with-private-money-a-way-ahead",
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  "summary": "Personal experience of poor infrastructure (potholes, missing bridges, lack of cell coverage) highlights broader systemic gaps linking infrastructure shortfalls to large pools of private capital.",
  "sections": [
    {
      "heading": "Context and problem statement",
      "content": "- Personal experience of poor infrastructure (potholes, missing bridges, lack of cell coverage) highlights broader systemic gaps linking infrastructure shortfalls to large pools of private capital.\n- Huge pools of available assets: pension funds, insurance companies, mutual funds and sovereign wealth funds sit on $100 trillion in assets.\n- Comparison benchmark: U.S. nominal GDP in the third quarter of last year was $18 trillion.\n- Huge infrastructure investment gap: between $1 to 1.5 trillion per year worldwide."
    },
    {
      "heading": "Key findings from the IMF-linked paper",
      "content": "- By putting to work a small portion of the privately owned $100 trillion for global infrastructure development, the positive impact on the global economy could be bigger than any other source of large-scale private investments.\n- The paper referenced is titled: From Global Savings Glut to Financing Infrastructure: The Advent of Investment Platforms.\n- New classes of facilitators—examples given include the European Investment Bank and the Asia Infrastructure Investment Bank—are emerging to enhance cooperation between public and private partners."
    },
    {
      "heading": "Risks and governance concerns",
      "content": "- Risks of engaging private investment in inefficient projects, including \"bridges to nowhere.\"\n- Risk of granting too generous concession terms, illustrated by the example of high highway tolls."
    },
    {
      "heading": "Proposed solutions and policy recommendations",
      "content": "- Creation of infrastructure securities.\n- Creation of a global infrastructure investment platform.\n- Use of facilitators (such as the European Investment Bank or the Asia Infrastructure Investment Bank) to enhance public-private cooperation while managing risks noted above."
    },
    {
      "heading": "About the blog and institutional context",
      "content": "- IMFBlog is a forum for the views of the International Monetary Fund (IMF) staff and officials on pressing economic and policy issues of the day.\n- The IMF, based in Washington D.C., is an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world.\n- The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.\n\nPublic Roads with Private Money: A Way Ahead — iMFdirect, February 29, 2016\n\n---\n\n Content in this bundle\n\n- wp1618\n  - wp1618 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1618 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/blogs/articles/2016/02/29/public-roads-with-private-money-a-way-ahead"
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    "Authors: iMFdirect",
    "Published: February 29, 2016",
    "Personal experience of poor infrastructure (potholes, missing bridges, lack of cell coverage) highlights broader systemic gaps linking infrastructure shortfalls to large pools of private capital.",
    "Huge pools of available assets: pension funds, insurance companies, mutual funds and sovereign wealth funds sit on $100 trillion in assets.",
    "Comparison benchmark: U.S. nominal GDP in the third quarter of last year was $18 trillion.",
    "Huge infrastructure investment gap: between $1 to 1.5 trillion per year worldwide.",
    "By putting to work a small portion of the privately owned $100 trillion for global infrastructure development, the positive impact on the global economy could be bigger than any other source of large-scale private investments.",
    "The paper referenced is titled: From Global Savings Glut to Financing Infrastructure: The Advent of Investment Platforms.",
    "New classes of facilitators—examples given include the European Investment Bank and the Asia Infrastructure Investment Bank—are emerging to enhance cooperation between public and private partners.",
    "Risks of engaging private investment in inefficient projects, including \"bridges to nowhere.\"",
    "Risk of granting too generous concession terms, illustrated by the example of high highway tolls.",
    "Creation of infrastructure securities.",
    "Creation of a global infrastructure investment platform.",
    "Use of facilitators (such as the European Investment Bank or the Asia Infrastructure Investment Bank) to enhance public-private cooperation while managing risks noted above.",
    "IMFBlog is a forum for the views of the International Monetary Fund (IMF) staff and officials on pressing economic and policy issues of the day.",
    "The IMF, based in Washington D.C., is an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world.",
    "The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.",
    "**wp1618**"
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