Infrastructure Done Right
IMF Blog, December 13, 2016
Source details
- Canonical URL
- Infrastructure Done Right
Other formats
Bibliographic details
- Authors: iMFdirect
- Published: December 13, 2016
Overview
- Publication: iMFdirect blog post titled "Infrastructure Done Right"
- Date: December 13, 2016
- Context: In the face of crumbling bridges and super-low interest rates, many countries are talking and planning to increase spending on infrastructure. The IMF has urged countries to consider not just more spending but smart spending, beginning with the Fall 2014 World Economic Outlook.
- Scope of infrastructure mentioned: bridges, roads, and highways, along with telecoms, ports and airports; social infrastructure includes building schools, public housing and hospitals.
- Examples of countries announcing plans to invest billions in coming years: Canada and the United Kingdom. The incoming U.S. Administration has also indicated its intention to increase investment in infrastructure.
Key findings and messages
- With interest rates still low, IMF research suggests that debt-financed investment could virtually pay for itself by:
- boosting demand in the short run, and
- boosting productivity in the long run.
- Caveat emphasized: the quality of investment matters. Countries should:
- invest well,
- invest where there is a clear need, and
- invest efficiently.
- Two weeks ago, IMF Deputy Managing Director Tao Zhang gave a speech about how countries can meet the growing needs, and challenges, of investing in public infrastructure.
Research and resources cited
- "Research on how countries can make public investment more efficient"
- "Our 2014 analysis on infrastructure and its effects on output"
- "A chart-based blog that examines how infrastructure investment pays off"
- "A video that explains the basics"
- "Our podcast on the merits of increased spending on infrastructure"
- "The IMF web page on how countries can manage public investment"
- Announcement: "Also, stay tuned in January for a book on how a modernizing China can invest in infrastructure."
- Embedded media: Infrastructure basics video (YouTube link referenced)
Institutional and attribution details
- 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.
- Disclaimer: The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board.
Source: IMF iMFdirect blog post "Infrastructure Done Right", December 13, 2016.
Content in this bundle
- Making Public Investment More Efficient; IMF Policy Paper, June 11, 2015
- Chapter 3: Is It Time for An Infrastructure Push? the Macroeconomic Effects of Public Investment