t is a great honor for us that Dr Raja Al-Marzoqi, member of the Advisory Boards of EMEA and EMNES holds the Lead Co-Chair of T20 Task Force 3: Infrastructure Investment and Financing.
Dr. Raja Al-Marzoqi is a former IMF advisor and Associate Professor of Economics at Prince Saud Alfaisal Institute of Diplomatic Studies. He formerly was a president of the Gulf Monetary Council. The T20 Task Force 3 aims to promote a discussion of the key barriers and opportunities for improving public and private infrastructure investment, as well as to identify which public policy changes are necessary to boost infrastructure investment.
Dr. Raja Al-Marzoqi highlighted the crucial role of think tanks 20 (T20) in engaging researchers to advise the G20 to reduce the waste in public finance and improve the efficiency.
Furthermore, he underlined that public investment in infrastructure is a vital of inclusive economic growth and development and the reduction of inequalities. It affects economic growth through both efficiency and productivity, where quality infrastructure plays a crucial role in fostering economic development and enhancing private investment and improve the quality of people life.
The global economy is facing substantial infrastructure investment needs over the coming decade. Reducing the gap in infrastructure development between advanced and newly emerging market countries is desperately needed to improve global connectivity, strengthen multinational governance standards, support effective social, and essential health services, and environmental sustainability.
However, more than a third of infrastructure investments are wasted globally, due to corruption, inefficiencies, lack of transparency and accountability. Deficiency of right institutions and frameworks for planning, allocating, and implementing infrastructure investment spending is one of the main source causing inefficiencies and corruption in infrastructure.
Engaging private sector investment in global infrastructure needs will expand the capacity to build desperately required smarter, more efficient, and resilient infrastructure services. The Task Force number 3 identified what public sector policy changes are necessary to improve the funding environment to stimulate significant longer-term private foreign and domestic infrastructure investments.
Specific public sector policy changes are required by countries to eliminate corruption, improve transparency and governance, and focusing on enhancing social wellbeing. The Task Force has examined actions that will resolve infrastructure investment bottlenecks to help bridge the infrastructure gaps within and among countries and between the least developed countries and more advanced countries in a conscious one-planet perspective.
Policy papers developed by the Task Force 3 cover a wide area of recommendations to enhance efficiencies and ensure adequate funds available and supply growth in a way to match demand and to avoid the gaps that hamper desired sustainable growth.