As a site dedicated to assisting infrastructure management professionals and practitioners, you will know that we are convinced that Infrastructure Asset Management is important.
A recent World Bank Paper ‘Transformation through Infrastructure‘ states the following in it’s Foreword:
“Infrastructure can be a vector of change in addressing some of the most systemic development challenges of today’s world: social stability, rapid urbanization, climate change adaptation and mitigation and natural disasters. Without an infrastructure that supports green and inclusive growth, countries will not only find it harder to meet unmet basic needs, they will struggle to improve competitiveness. Today, the infrastructure gap in low and middle-income countries is estimated at US$1 trillion. More and more, countries need to turn to the private sector as well as the public sector to build and operate their essential infrastructure. “
The amount of money planned to be spent on Infrastructure worldwide is huge – both as a percentage of GDP and in absolute dollar terms.
It can be seen from this Table that many of the world’s regions are planning to spend 7% of GDP per annum on Infrastructure. The South Asian and the Latin America and Caribbean Regions are significantly lower.
These are huge investments of national income, and when contrasted with average world military expenditure of 2.5%, the extent, and importance of current infrastructure investment and expenditure can be seen.
Given the level of new and on-going investment effective infrastructure management is imperative.