Infrastructure Governance Insight From IMF

Sep. 14, 2020
The International Monetary Fund indicates that the COVID-19 period could be an opportunity for countries to develop infrastructure governance level to decrease the waste in public investment.

According to the new-released IMF study, countries waste about 1/3 their infrastructure spending due to inefficiencies, on average. For the low income developing countries, countries waste up to 53% of the budget they spend on infrastructure. Improving the efficiency of infrastructure governance can release more budget to benefit people and the economy recovery.

The condition of infrastructure system determines the development of district economy. For developing countries, they need to build the infrastructure system from zero to one. While for the developing countries, they need to maintain and protect the infrastructure system from damages. And for emerging market economies, they need to upgrade the infrastructure system to adapt the increasing demands.

The October 2020 Fiscal Monitor will include more of the IMF’s analysis and policy advice on how countries can best invest in infrastructure to build a sustainable economy and recovery.



IMF, IMFBlog, cited September 8, 2020, link: SchwartzManal FouadTorben Hansen, and Geneviève Verdier, Well Spent : How Strong Infrastructure Governance Can End Waste in Public Investment, cited September 8, 2020,link: 
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