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Infrastructure gap in South Asia : infrastructure needs, prioritization, and financing

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  • Andres,Luis Alberto
  • Biller,S. A. Dan
  • Herrera Dappe,Matias

Abstract

If the South Asia region hopes to meet its development goals and not risk slowing down or even halting growth, poverty alleviation, and shared prosperity, it is essential to make closing its huge infrastructure gap a priority. Identifying and addressing gaps in the data on expenditure, access, and quality are crucial to ensuring that governments make efficient, practical, and effective infrastructure development choices. This study addresses this knowledge gap by focusing on the current status of infrastructure sectors and geographical disparities, real levels of investment and private sector participation, deficits and proper targets for the future, and bottlenecks to expansion. The findings show that the South Asia region needs to invest between US$1.7 trillion and US$2.5 trillion (at current prices) to close its infrastructure gap. If investments are spread evenly over the years until 2020, the region needs to invest between 6.6 and 9.9 percent of 2010 gross domestic product per year, an estimated increase of up to 3 percentage points from the 6.9 percent of gross domestic product invested in infrastructure by countries in the region in 2009. Given the enormous size of the region's infrastructure deficiencies, it will need a mix of investment in infrastructure stock and supportive reforms to close its infrastructure gap. One major challenge will be prioritizing investment needs. Another will be choosing optimal forms of service provision, including the private sector's role, and the decentralization of administrative functions and powers.

Suggested Citation

  • Andres,Luis Alberto & Biller,S. A. Dan & Herrera Dappe,Matias, 2014. "Infrastructure gap in South Asia : infrastructure needs, prioritization, and financing," Policy Research Working Paper Series 7032, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7032
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    References listed on IDEAS

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    Cited by:

    1. Luis Andres & Dan Biller & Jordan Schwartz, 2014. "The Infrastructure Gap and Decentralization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1406, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Biller, Dan & Andres , Luis & Herrera Dappe, Matias & Basnyat , Ashma, 2014. "Sharing Prosperity by Closing South Asia’s Infrastructure Gap," World Bank - Economic Premise, The World Bank, issue 149, pages 1-10, June.
    3. repec:eee:wdevel:v:97:y:2017:i:c:p:279-297 is not listed on IDEAS
    4. Islam, Tanweer & Hyder, Asma, 2016. "A Reflection on Child and Infant Mortality in Selected South Asian Countries," MPRA Paper 86309, University Library of Munich, Germany, revised 2017.
    5. Andres,Luis Alberto & Biller,S. A. Dan & Herrera Dappe,Matias, 2014. "Infrastructure gap in South Asia : inequality of access to infrastructure services," Policy Research Working Paper Series 7033, The World Bank.
    6. Jonas Frank & Jorge Martinez-Vazquez, 2014. "Decentralization And Infrastructure: From Gaps To Solutions," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1405, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    7. Dan Biller & Luis Andres & Matias Dappe, 2015. "Infrastructure Gap in South Asia: Inequality of Access to Infrastructure Services," ERSA conference papers ersa15p1485, European Regional Science Association.

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    Keywords

    Economic Theory&Research; Non Bank Financial Institutions; Transport Economics Policy&Planning; Infrastructure Economics; Public Sector Economics;

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