Cross-border
infrastructure initiatives can help Asia economically and socially. If the
required $8 trillion investment in pan-Asian connectivity in the region's
infrastructure is made between 2010 and 2020, total net income gains for
developing Asia could reach $12.98 trillion (in 2008 US dollars) between 2010
and 2020 and beyond, with more than $4.43 trillion gained between 2010 and 2020
and nearly $8.55 trillion gained after 2020 [1]. By facilitating the movement
of goods, services, and human resources, producing economies of scale,
promoting trade and foreign direct investments, creating new business
opportunities, stimulating inclusive industrialization, and closing development
gaps between communities, countries, and sub-regions, infrastructure
connectivity helps improve regional productivity and competitiveness. Despite
this, progress in the creation of cross-border infrastructure in the region is
slow due to a lack of funding. The goal of this paper is to look at the major
obstacles to cross-border project financing and discuss the roles that various
stakeholders—national governments, state-owned enterprises, private sector,
regional entities, development financing institutions (DFIs), affected people,
and civil society organizations—can play in facilitating cross-border
infrastructure development. This paper, in particular, highlights the major
risks that deter private sector investments and FDIs, and suggests that, in
order to achieve the multiple United Nations Sustainable Development Goals
(SDGs), more attention should be paid to sustainability-related measures and
adaptation standards [2]. The integration of environment-social-governance
(ESG) elements contributes to a more inclusive, sustainable, and resilient
environment for cross-border infrastructure projects. Recommendations based on
worldwide experiences are also presented to handle the funding demands and hazards
associated with cross-border initiatives.
Author (S) Details
Jyoti Bisbey
International sustainable development finance specialist, US.
Dr. Lili Li
Lee Kuan Yew School of Public Policy, National University of Singapore,
Singapore.
Qingyang Gu
Lee Kuan Yew School of Public Policy, National University of Singapore,
Singapore.
Ching-Yuan Chu
Senior associate in the Valuation Advisory Service at Duff & Phelps,
Taiwan
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