Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries

32 Pages Posted: 1 Dec 2017

See all articles by Daniel Gurara

Daniel Gurara

International Monetary Fund (IMF)

Vladimir Klyuev

International Monetary Fund (IMF)

Nkunde Mwase

International Monetary Fund (IMF)

Andrea Presbitero

International Monetary Fund (IMF)

Xin Cindy Xu

International Monetary Fund (IMF)

Geoffrey J. Bannister

International Monetary Fund

Date Written: November 2017

Abstract

This paper examines trends in infrastructure investment and its financing in low-income developing countries (LIDCs). Following an acceleration of public investment over the last 15 years, the stock of infrastructure assets increased in LIDCs, even though large gaps remain compared to emerging markets. Infrastructure in LIDCs is largely provided by the public sector; private participation is mostly channeled through Public-Private Partnerships. Grants and concessional loans are an essential source of infrastructure funding in LIDCs, while the complementary role of bank lending is still limited to a few countries. Bridging infrastructure gaps would require a broad set of actions to improve the efficiency of public spending, mobilize domestic resources and support from development partners, and crowd in the private sector.

Keywords: Infrastructure; Public Investment; Public-Private Partnerships; Developing Countries, Infrastructure, Public Investment, Public-Private Partnerships, Developing Countries, General, Regional, Urban, and Rural Analyses

JEL Classification: E22, H40, O18

Suggested Citation

Gurara, Daniel and Klyuev, Vladimir and Mwase, Nkunde and Presbitero, Andrea and Xu, Xin Cindy and Bannister, Geoffrey J., Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries (November 2017). IMF Working Paper No. 17/233. Available at SSRN: https://ssrn.com/abstract=3079560

Daniel Gurara (Contact Author)

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Vladimir Klyuev

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Nkunde Mwase

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Andrea Presbitero

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Xin Cindy Xu

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Geoffrey J. Bannister

International Monetary Fund ( email )

700 19th St. NW
Washington, DC 20431
United States
202-623-9421 (Phone)
202-623-4237 (Fax)

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