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COMMENTARY: Poor, inadequate infrastructure causes inequality, poverty
Many international and national studies have also concluded that inadequate physical infrastructure is not only an impediment to growth, but is also one of the root causes of poverty and inequality.
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Urban poor – A resident carries out her daily activities in a slum area in Kapuk Teko, Jakarta, on Sept. 27. Poverty alleviation is one of prime issues highlighted in the Sustainable Development Goals (SDGs), a global development agenda adopted by world leaders last year. (Antara/Rivan Awal Lingga)
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ix of the more than two dozen simultaneous seminars and conferences held on the sidelines of the four-day 50th Asian Development Bank Board of Governors meeting in Yokohama, Japan last week focused on various aspects of infrastructure development.
The rationale is self-evident. Infrastructure investment has the multiplier effect of increasing efficiency and competitiveness, promoting both international linkages and domestic economic integration and increasing an economy’s productive capacity.
Many international and national studies have also concluded that inadequate physical infrastructure is not only an impediment to growth, but is also one of the root causes of poverty and inequality. And poverty as well as inequality are the main problems of most ADB members.
An ADB report on Asian infrastructure needs issued in February concludes that inadequate physical infrastructure is not only an impediment to growth, but is also one of the root causes of poverty.
Addressing the region’s infrastructure and connectivity means addressing the risks and uncertainties linked to regional investment and the lack of public funding.
The study estimates infrastructure needs in developing Asia and the Pacific at more than US$22.6 trillion through 2030, or $1.5 trillion per year, if the region is to maintain growth momentum.
Meanwhile the National Development Agency in Jakarta put Indonesia’s infrastructure financing needs at around Rp 5,000 trillion ($373 billion) for the 20152019 period or $75 billion a year. Of which, 40 percent is expected from the government and 60 percent from the private sector.
