{"id":21050,"date":"2022-06-29T14:17:31","date_gmt":"2022-06-29T18:17:31","guid":{"rendered":"https:\/\/www.bu.edu\/gdp\/?p=21050"},"modified":"2022-06-29T14:17:31","modified_gmt":"2022-06-29T18:17:31","slug":"financing-infrastructure-new-normal-new-technologies-new-financing","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/gdp\/2022\/06\/29\/financing-infrastructure-new-normal-new-technologies-new-financing\/","title":{"rendered":"Financing Infrastructure &#8211; New Normal, New Technologies, New Financing"},"content":{"rendered":"<figure id=\"attachment21016\" aria-describedby=\"caption-attachment21016\" style=\"width: 646px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" src=\"\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-636x424.jpg\" alt=\"\" width=\"636\" height=\"424\" class=\"wp-image-21016 size-medium\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-636x424.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-1024x683.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-768x512.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-1536x1024.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2022\/06\/airlangga-jati-p8KroOp9LJI-unsplash-2048x1365.jpg 2048w\" sizes=\"(max-width: 636px) 100vw, 636px\" \/><figcaption id=\"caption-attachment21016\" class=\"wp-caption-text\">Jakarta, Indonesia. Photo by Airlangga Jati via Unsplash.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Fallout from the COVID-19 pandemic and Russia\u2019s war in Ukraine have exacerbated a large divergence in development due to the uneven recovery from the health crisis, looming stagflation and the global climate crisis. For emerging markets and developing countries (EMDCs), outlook remains dampened by the lasting legacies of the pandemic, including the erosion of skills from lost work and schooling, a sharp drop in investment, higher debt burdens and greater financial vulnerability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As part of the Group of 20 (G20) Indonesia 2022 report \u2018<\/span><a href=\"https:\/\/www.eria.org\/research\/new-normal-new-technologies-new-financing\/\"><b>New Normal, New Technologies, New Financing<\/b><\/a>\u2019<span style=\"font-weight: 400;\">, Justin Yifu Lin and <\/span><a href=\"https:\/\/www.bu.edu\/gdp\/profile\/yan-wang\/\"><span style=\"font-weight: 400;\">Yan Wang<\/span><\/a><span style=\"font-weight: 400;\"> address barriers to overcoming inadequate financing for infrastructure and provide proposals for international cooperation in a post COVID-19 world toward green financing, patient capital and equity financing.\u00a0<\/span><\/p>\n<h5><b>Key recommendations:<\/b><\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In view of the huge infrastructure financing gap, Lin and Wang argue the post-pandemic agenda is clear: countries must prioritize infrastructure, consistent with a country\u2019s nationally determined contributions (NDCs) and the UN 2030 Sustainable Development Goals (SDGs), to tackle country-specific infrastructure bottlenecks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The G20 Summit in November 2022 should call on all partners, including the private sector, not to finance new coal-fired power plants in any part of the world.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The G20 should play a leadership role in proposing new initiatives and coordinating global efforts, like possibly using part of the $650 billion in Special Drawing Rights (SDRs) allocated by the International Monetary Fund (IMF) to establish a global green finance fund for green infrastructure.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The G20 should strengthen its support for multilateralism, including for existing multilateral development banks (MDBs) and funds, as well as newly established MDBs, like the Asian Infrastructure Investment Bank and the New Development Bank.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">G20 leaders, the IMF, MDBs, rating agencies and development practitioners should consider a country\u2019s key infrastructure, such as water, electricity, transportation hubs and telecom centers, as a country\u2019s core capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Innovation is needed for both debt relief and green transformation and Lin and Wang call on international financial institutions to take more responsibility in supporting, not rejecting, innovative approaches from the Global South.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To achieve the SDGs in the post-pandemic era, Lin and Wang argue governments need to know what they own (asset) and owe (liability) to distinguish patient capital from footloose investors and to separate long-term (structural) and short-term (liquidity) issues. A concerted effort to reinvigorate investment in both hard and soft infrastructure, expand access to vaccinations, improve digital connectivity and invest in green infrastructure is essential to bolster growth along a sustainable, resilient and inclusive path for achieving the SDGs by 2030 and beyond.\u00a0<\/span><\/p>\n<a href=\"https:\/\/www.eria.org\/research\/new-normal-new-technologies-new-financing\/\" class=\"button\">Read the Report<\/a>\n","protected":false},"excerpt":{"rendered":"<p>Fallout from the COVID-19 pandemic and Russia\u2019s war in Ukraine have exacerbated a large divergence in development due to the uneven recovery from the health crisis, looming stagflation and the global climate crisis. For emerging markets and developing countries (EMDCs), outlook remains dampened by the lasting legacies of the pandemic, including the erosion of skills [&hellip;]<\/p>\n","protected":false},"author":19928,"featured_media":21016,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1137,156,72,1146,1071,104],"tags":[1618,2288,437,2306,1699,471,2309,2308,1360,1228,1196,1423,1816,2305,2257,1576,2304,1348,2307,440,1502,195,565],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/21050"}],"collection":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/users\/19928"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/comments?post=21050"}],"version-history":[{"count":2,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/21050\/revisions"}],"predecessor-version":[{"id":21077,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/21050\/revisions\/21077"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media\/21016"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media?parent=21050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/categories?post=21050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/tags?post=21050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}