10 Feb 2015
Magdy Martínez-Solimán, Director, Bureau for Policy and Programme Support
A Renewable energy generation project, implemented by UNDP and funded by the OPEC Fund for International Development (OFID), installed solar panels in schools and maternity clinics in Gaza. Photo: UNDP/PAPP
According to the Oxford University Said Business School, we are facing an unprecedented infrastructure mega-project investment era, amounting to 6-9 trillion US$ annually, or 8% of the global GDP. Whether it involves revamping old infrastructure, developing new sources of energy, providing access to social services and utilities to more people (with the paradigm of universal access in sight) or developing our communications infrastructure, it is easy to be in favour of more, and better, infrastructural development.
The issue is not for poor countries alone to struggle with. President Obama wants to upgrade the US roads, bridges and ports by imposing new taxes on overseas earnings by American companies. Little can be said against infrastructure as a public good. The problem is how to interest private finance in that public good.
As the Secretary-General said in his post-2015 agenda Synthesis Report last December, “Urgent action is needed to mobilise, redirect, and unlock the transformative power of trillions of dollars of private resources to deliver on sustainable development objectives.”
Infrastructure makes life better, economies more competitive, and while being built, offers jobs to the value chain. On the other side, however, infrastructure also massively consumes cement and increases emissions. It is one …