Infrastructure is crucially important to foster economic development and prosperity of countries. It contributes to higher productivity and growth, facilitates trade and connectivity, and promotes economic inclusion. Infrastructure is also a key driver to achieve the Sustainable Development Goals
(SDGs). For example, the expansion of electricity distribution networks will improve access to energy in urban and rural areas. Transport infrastructure will connect people, facilitate the movement of goods, support trade, thus contributing to a country’s economic growth. Water infrastructure will improve people’s health through better access to clean water and by managing scarce resources in a suitable manner.
In line with the increasing trend of population growth, migration, and urbanization, the demand for infrastructure development is also rising. McKinsey has reported that from 2016 to 2030, there will be a need to invest on average $3.3 trillion annually to keep pace with projected growth, of which,
60% is accounted for by developing countries. Furthermore, the Asian Development Bank has estimated that $1.7 trillion is required every year to maintain rates of growth sufficient to alleviate poverty in the Asian region, including investment needs for climate change mitigation and adaptation. As the population of developing countries keeps growing, it is imperative to build high-quality infrastructure that is sustainable and resilient, increases business activities, creates new employment, empowers gender participation, narrows income disparities, and ensures universal participation in the successful
implementation of the SDGs.
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