The G20 Principles for Quality Infrastructure Investment emphasise the need for projects that are economically viable, socially inclusive, environmentally sustainable and resilient to natural disasters. To help policy makers achieve the latter, the OECD reviews concrete infrastructure projects around the world, identifies global practices with universal relevance, and provides concrete implementation guidance
Infrastructure and development
Water and sanitation, transport, energy and other infrastructure underpin human development, economic growth and poverty alleviation. The OECD provides data, analysis and guidance to policy makers as they strive to mobilise the necessary finance; design and implement efficient, cost-effective and sustainable projects; and control for their environmental and social impacts.
Key messages
As demographic growth and rapid urbanisation push up the demand for roads, energy, water or telecommunications, most low- and middle-income countries -- constrained by low levels of tax and other domestic revenue-- rely heavily on external sources of finance to bridge the infrastructure investment gap. The OECD supports the efforts by governments and their development co-operation partners to mobilise more and better investment in those sectors, with evidence, analysis and guidance.
In the pursuit of sustainable development, there is more to infrastructure than building assets: investment decisions must consider the full economic, social and environmental outcomes of projects over the long term. This requires strong institutional capabilities; a stable regulatory framework; a great deal of technical and financial expertise; as well as the constant refinement of an enabling environment for investors. For many developing and emerging economies, the challenges can be daunting. The OECD helps them design and implement adequate policy responses, with a series of analytical studies and dialogues.
Context
Developing country challenges in building climate-resilient infrastructure
Developing countries are particularly vulnerable to extreme weather events, as they are to all natural disasters, especially Least Developed Countries (LDCs) and Small Island Developing States (SIDS). High financing costs and other challenges also hinder their ability to build quality infrastructure and achieve their development goals.
Bangladesh increasingly uses foreign aid for infrastructure development
While early development co-operation efforts by Bangladesh’s partners focused on poverty alleviation, rural development and disaster preparedness, recently they have been increasing their support to the country’s economic transformation. Overall, around 32% of total official development assistance (ODA) to Bangladesh between 2018 and 2021, which rounds up to USD 8.9 billion, focused on economic transformation programmes, making Bangladesh one of the countries where ODA focuses the most on economic transformation. Within the ODA for economic transformation, infrastructure and energy account for the most, i.e. 75% of the total.
African Virtual Investment Platform
Africa is the world’s next investment frontier
Leaders at the G7 endorsed the African Union-OECD African Virtual Investment Platform (AfVIP), which aims to enhance transparency, improve public policies and aid decision-making.
