Institutional Architecture for Financing Pan-Asian Infrastructure Connectivity

28 Pages Posted: 10 May 2017

See all articles by Biswa N. Bhattacharyay

Biswa N. Bhattacharyay

Asian Development Bank Institute; Asian Development Bank; CESifo (Center for Economic Studies and Ifo Institute)

Madhurima Bhattacharyay

McGill University - Desautels Faculty of Management

Date Written: April 06, 2017

Abstract

Asia, particularly its major economies has witnessed slower growth in recent years. To make Asia more economically sustainable and resilient against external shocks to recover from the falling growth, most regional economies need to rebalance their export-oriented (mostly to advanced economies) production and growth towards Asian markets and regional demand, and trade-driven growth through increased intraregional infrastructure connectivity and regional economic integration. In 1992, a pan-Asian transport connectivity was initiated through, Asian Highway Network and Trans-Asian Railways Network. In 2015, an ambitious pan-Asian connectivity initiative, namely “One Belt, One Road” (ancient silk road) initiative has been proposed. This initiative plans to create an economic zone covering Asia, Europe and Africa. To successfully promote and finance greater physical connectivity, at the pan-Asian, sub-regional and national levels, Asia will require a strong and appropriate institutional framework for effective coordination, cooperation and collaboration among national, subregional, and region-wide institutions as well as other stakeholders. This paper discusses the prospects and challenges facing Asian connectivity as well as infrastructure financing needs in Asia. It also examines the nature and characteristics of existing and new institutions and the emerging role of regional and international institutions for enhancing Asian connectivity. Lastly, it proposes an institutional architecture consisting of new “Asian Infrastructure Coordination Facility (AICF)” involving major stakeholders for building a seamless pan-Asian connectivity through bilateral, regional and international cooperation, partnership and collaboration in infrastructure development.

Keywords: Asia, connectivity, hard and soft infrastructure, bilateral, regional and international institutions, inclusive and sustainable infrastructure, infrastructure financing, institutional architecture, financial instruments, bilateral and multilateral development banks

JEL Classification: R100, R400, R420

Suggested Citation

Bhattacharyay, Biswa Nath. and Bhattacharyay, Madhurima, Institutional Architecture for Financing Pan-Asian Infrastructure Connectivity (April 06, 2017). CESifo Working Paper Series No. 6422. Available at SSRN: https://ssrn.com/abstract=2965362

Biswa Nath. Bhattacharyay (Contact Author)

Asian Development Bank Institute ( email )

Kasumigaseki Building 8 Floor
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo, Tokyo 100-6008
Japan
(81-3)3593-5566 (Phone)
(81-3)3593-4270 (Fax)

HOME PAGE: http://www.adbi.org

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Madhurima Bhattacharyay

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

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