{
  "title": "Emerging Economy Consumers Drive Infrastructure Needs",
  "publication": "IMF Blog, May 4, 2017",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs",
  "canonical": "https://www.imf.org/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs",
  "overlayPath": "/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/index.md",
  "summary": "Reference to Engel’s Law: household expenditure on food rises with income and family size, but the proportion of income spent on food falls.",
  "sections": [
    {
      "heading": "Income, consumption patterns, and Engel’s Law",
      "content": "- Reference to Engel’s Law: household expenditure on food rises with income and family size, but the proportion of income spent on food falls.\n- Evidence from household surveys for 20 advanced and emerging market economies shows a strong and positive relationship between personal income and transportation spending.\n- Exact numerical relationship highlighted:\n  - People making $200 a year devote 1 percent of their income to transportation.\n  - People making $20,000 a year devote 18 percent of their income to transportation."
    },
    {
      "heading": "Projected changes in incomes and transport demand",
      "content": "- Over the next 20 years:\n  - The number of people earning between $6,000 and $20,000 worldwide will rise by a little more than a billion, and many of these will purchase their first car.\n  - The number of people earning more than $20,000 will increase by almost 800 million, and many of these will begin to fly for leisure.\n- Regional projections:\n  - Consumer spending on transportation is projected to quadruple by 2035 in India, China, and other parts of emerging Asia, as well as in sub-Saharan Africa.\n- Infrastructure cost estimate:\n  - Merely building the paved roads and railroads needed to accommodate growing world demand for transportation could cost some $48 trillion over the next 20 years.\n  - Emerging market and developing economies will need the bulk of that investment."
    },
    {
      "heading": "Financing needs and the role of the private sector",
      "content": "- Public financing options:\n  - Altering government spending priorities or raising money through taxes could finance some infrastructure investment.\n- Private sector imperative:\n  - The only realistic way to meet the large and growing infrastructure gap in emerging markets is through the private sector, including pension funds and life insurance companies worldwide.\n- Conditions to unlock private capital:\n  - Changes to prudential requirements to allow investors to hold internationally diversified portfolios of infrastructure projects.\n  - Use of public-private partnerships with multilateral and regional development banks to provide the approval required by these investors.\n  - Stable regulatory environments free from arbitrary political interference are necessary to attract private investors.\n- Fiscal risk and disclosure:\n  - Calls on government guarantees of public-private partnerships have occasionally imposed budgetary costs equivalent to one or more percentage points of GDP in many countries, including Colombia, Indonesia, and Portugal.\n  - To reduce these risks, governments will need to monitor and disclose fiscal obligations stemming from projects involving private participation.\n  - Several countries, including Chile, now regularly monitor and disclose such obligations."
    },
    {
      "heading": "Transparency, governance, and project effectiveness",
      "content": "- Core governance priorities:\n  - Transparency and an independent media are critical to monitor and report on projects and to allow citizens to pressure policymakers to pursue the public interest.\n  - Publication of tenders and key contract features, good record-keeping, and quality control during procurement (project evaluation, tendering) and contract performance are essential.\n- Anti-corruption and accountability measures:\n  - These procurement and disclosure practices help ensure financing is put to productive uses and not illicitly siphoned off or directed to low-value-added projects favored by political supporters.\n  - To deter fraud, governments must offer whistleblowers rewards and protection from retaliation.\n- Institutional weaknesses:\n  - Many emerging economies score poorly on indicators of the quality of the institutional setup for project selection and implementation.\n  - Corruption afflicts all countries; advanced economies also need to protect infrastructure investment projects from undue private influence and arbitrary political interference."
    },
    {
      "heading": "Environmental and long-term policy choices",
      "content": "- Green construction and modal choices:\n  - Citizens would benefit from new “green” construction choices.\n  - Favoring metro-railways and other public transportation over roads in new transportation networks will help reduce carbon emissions for decades.\n- Overarching recommendation:\n  - Infrastructure investment holds enormous promise and potential, but realizing benefits requires policymakers to adopt and safeguard appropriate checks and balances to make sure citizens benefit from the right choices.\n\nSource: Emerging Economy Consumers Drive Infrastructure Needs, Paolo Mauro, May 4, 2017.\n\n---\n\n Content in this bundle\n\n- 新兴经济体消费者驱动基础设施需求, 作者: Paulo Mauro, 2017年5月4日\n  - 新兴经济体消费者驱动基础设施需求, 作者: Paulo Mauro, 2017年5月4日 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 新兴经济体消费者驱动基础设施需求, 作者: Paulo Mauro, 2017年5月4日 (PDF){rel=\"external\" type=\"application/pdf\"}\n- 新興市場国の消費者がインフラニーズの原動力; IMF ブログ 2017年5月4日掲載\n  - 新興市場国の消費者がインフラニーズの原動力; IMF ブログ 2017年5月4日掲載 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 新興市場国の消費者がインフラニーズの原動力; IMF ブログ 2017年5月4日掲載 (PDF){rel=\"external\" type=\"application/pdf\"}\n- В странах с формирующимся рынком потребители определяют потребности в инфраструктуре\n  - В странах с формирующимся рынком потребители определяют потребности в инфраструктуре (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - В странах с формирующимся рынком потребители определяют потребности в инфраструктуре (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- https://www.imf.org/wp-content/uploads/2017/05/IMFInfrastructurechart1.jpg\n- https://www.imf.org/wp-content/uploads/2017/05/IMFInfrastructurechart-2.jpg\n- Several countries\n\nSource: https://www.imf.org/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs"
    }
  ],
  "bullets": [
    "[Markdown version](/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/index.md)",
    "[Structured JSON version](/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/index.json)",
    "[Bundle manifest](/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/bundle-manifest.json)",
    "Authors: Paolo Mauro",
    "Published: May 4, 2017",
    "Reference to Engel’s Law: household expenditure on food rises with income and family size, but the proportion of income spent on food falls.",
    "Evidence from household surveys for 20 advanced and emerging market economies shows a strong and positive relationship between personal income and transportation spending.",
    "Exact numerical relationship highlighted:",
    "Over the next 20 years:",
    "Regional projections:",
    "Infrastructure cost estimate:",
    "Public financing options:",
    "Private sector imperative:",
    "Conditions to unlock private capital:",
    "Fiscal risk and disclosure:",
    "Core governance priorities:",
    "Anti-corruption and accountability measures:",
    "Institutional weaknesses:",
    "Green construction and modal choices:",
    "Overarching recommendation:",
    "**新兴经济体消费者驱动基础设施需求, 作者: Paulo Mauro, 2017年5月4日**",
    "**新興市場国の消費者がインフラニーズの原動力; IMF ブログ 2017年5月4日掲載**",
    "**В странах с формирующимся рынком потребители определяют потребности в инфраструктуре**",
    "[https://www.imf.org/wp-content/uploads/2017/05/IMF_Infrastructure_chart1.jpg](https://www.imf.org/wp-content/uploads/2017/05/IMF_Infrastructure_chart1.jpg)",
    "[https://www.imf.org/wp-content/uploads/2017/05/IMF_Infrastructure_chart-2.jpg](https://www.imf.org/wp-content/uploads/2017/05/IMF_Infrastructure_chart-2.jpg)",
    "[Several countries](http://www.imf.org/en/Publications/Policy-Papers/Issues/2016/12/31/Analyzing-and-Managing-Fiscal-Risks-Best-Practices-PP5042)"
  ],
  "related": [
    {
      "title": "新兴经济体消费者驱动基础设施需求, 作者: Paulo Mauro, 2017年5月4日",
      "role": "document",
      "sourceUrl": "http://www.imf.org/external/chinese/np/blog/2017/050417c.pdf",
      "summary": {
        "path": "/external/chinese/np/blog/2017/050417c.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/external/chinese/np/blog/2017/050417c.pdf",
        "mime": "application/pdf"
      }
    },
    {
      "title": "新興市場国の消費者がインフラニーズの原動力; IMF ブログ 2017年5月4日掲載",
      "role": "document",
      "sourceUrl": "http://www.imf.org/external/japanese/np/blog/2017/050417j.pdf",
      "summary": {
        "path": "/external/japanese/np/blog/2017/050417j.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/external/japanese/np/blog/2017/050417j.pdf",
        "mime": "application/pdf"
      }
    },
    {
      "title": "В странах с формирующимся рынком потребители определяют потребности в инфраструктуре",
      "role": "document",
      "sourceUrl": "http://www.imf.org/external/russian/np/blog/2017/050417r.pdf",
      "summary": {
        "path": "/external/russian/np/blog/2017/050417r.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/external/russian/np/blog/2017/050417r.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/index.md",
    "json": "/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/index.json",
    "bundleManifest": "/en/blogs/articles/2017/05/04/emerging-economy-consumers-drive-infrastructure-needs/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-08-27T21:21:46.147Z"
}