How effective have public private partnerships really been as a mechanism for the provision of public infrastructure investment in developing economies?

Private investment in the supply of public and semi public goods such as infrastructure, health care, communications has become more widespread.

Employment generating growth presupposes a labour intensive growth path, with the emphasis on public works programmes and investment in infrastructure, including public housing schemes.

While the public sector will continue to play an important role, given the massive investment required, substantial private investment including foreign investment would be needed to address India s huge infrastructure deficit and the financing gap that accompanies it. A strategy of private public partnership has been adopted to address the infrastructure challenge.

Public infrastructure

Public infrastructure

(d) Public investment for infrastructure is low, threatening the community s social and economic life and contacts with the outside world

Public health infrastructure

TRADE AND INVESTMENT, TRANSPORT INFRASTRUCTURE AND

2. Attracting private investment in infrastructure

Taxes are the key source of revenue that allows Governments to promote development and investment and to provide public services and infrastructure.

Also, UNCITRAL prepared the UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects17 and the associated Model Legislative Provisions on Privately Financed Infrastructure Projects18 to assist countries in establishing a legal framework favourable to private investment in public infrastructure.

Why Public Investment?

(iii) promoting regional cooperation in investment promotion and enterprise development, including public private partnerships in infrastructure development and the promotion of Corporate Social Responsibility

Turning specifically to the problem of indebtedness, it is widely acknowledged that it has serious consequences for investment and new growth. Not only does it make it impossible for public investment in physical infrastructure and human resources, but it discourages private investment, including foreign investment.

Infrastructure projects require extensive planning and significant upfront investment.

B. Private sector and public infrastructure

1. Private sector and public infrastructure

The various themes of the framework included trade policy, competition policy, investment policy, tax policy, corporate governance, public governance, infrastructure development and human resources development.

Recognizing the need to provide an enabling environment that both encourages private investment in infrastructure and takes into account the public interest concerns of the country,

Specific policy instruments that can be considered include incentives, performance requirements, investment targeting, and the provision of public goods (notably low cost and high quality infrastructure).

If we do that, we not only get the jobs, we get the improvements in public infrastructure, the restoration of public infrastructure.

(iii) Encourage the participation of foreign private investment in infrastructure development

Direct public investment in resource protection

That is why Obama called for an increase in US public investment in three areas education, science and technology, and infrastructure (including broadband Internet, fast rail, and clean energy). He spelled out a vision of future growth in which public and private investment would be complementary, mutually supportive pillars.

Foreign direct investment is one of the important sources for building infrastructure.

(f) Strengthen the information technology infrastructure to support investment and operational processes

Excluding investment in roads, only 80 million was spent on infrastructure development.

The process should start with an increase in public investment to meet critical needs, and to trigger an increase in private investment, which is impeded by the lack of basic infrastructure, and of a healthy and skilled labour force.

The government, well aware of the overcapacity problem, focused the country s stimulus package on investment in infrastructure, rather than new factories. But infrastructure is a long term investment, revenues from which will be lower without accompanying investment in manufacturing capacity.

5. Strengthening industrial infrastructure UNIDO prepared a desk study in 1997 on investment opportunities in infrastructure in selected least developed countries.

Morocco boasts solid infrastructure, a robust banking system, sound public finances, low inflation, and manageable unemployment. Despite capital flight from much of the region, foreign investment continues to flow in.

Cuba supported investment that created infrastructure and contributed capital, market and technology elements.

(c) To support the building of an international infrastructure consortium involving the African Union, the World Bank and the African Development Bank, with the New Partnership for Africa's Development as the main framework, to facilitate public and private infrastructure investment in Africa

The International Investment Attractiveness Index of Credit Suisse Bank includes four sub indices infrastructure, economic outlook, business environment and direct investment.

5. Strengthening of industrial infrastructure UNIDO prepared a desk study in 1997 on investment opportunities in infrastructure in selected least developed countries.

Weak infrastructure is an impediment to investment in manufacturing but it can also be an attractive opportunity for the international infrastructure industry.

Weak infrastructure is an impediment to investment in manufacturing but it can also be an attractive opportunity for the international infrastructure industry.

Countries need to ensure sustainable public investment in the essential public health functions.

But it does not automatically follow that governments should pour money into public infrastructure projects or foster private investment by adding further incentives amid already auspicious market conditions. At a time when private income has shrunk, public resources are scarce, and debt burdens are heavy, plans to stimulate investment should be carefully scrutinized.

China s investment consists of mainly three broad categories manufacturing industry, infrastructure, and real estate. In late 2008 and 2009, at the height of the global financial crisis, stimulus fueled infrastructure investment sustained output growth.

It is nonetheless important that there be sufficient public investment in services, infrastructure and overall resources specifically allocated to early childhood, for the many reasons set out in this general comment.

12. A programme of sustained economic growth should also aim at a significant recovery in public investment in infrastructure, which in many cases has been run down after years of neglect.

Governments were also encouraged to promote public public and public private partnerships for financing and developing infrastructure and affordable housing.

Concurrently, greater investment in infrastructure is also necessary to achieve higher rates of growth.