This report aims to shift the investment needs debate away from a simple focus on spending more towards spending better on the right objectives using relevant metrics. It does so by offering a careful and systematic approach to estimating the funding needs (capital and operations and maintenance) to close the service gap in water and sanitation, transportation, electricity, irrigation, and flood protection.
Main conclusions include: * How much countries need to spend on infrastructure depends on their goals, but also the efficiency with which they pursue these goals * With the right policies, investments of 4.5 percent of GDP will enable LMICs to achieve the infrastructure-related Sustainable Development Goals and stay on track to limit climate change to 2 degrees. * Infrastructure investment paths compatible with full decarbonization by the second half of the century need not cost more than more polluting alternatives
Investing in infrastructure is not enough; maintaining it matters.
Julie Rozenberg is a Senior Economist in the Office of Chief Economist of the Sustainable Development Vice-Presidency at the World Bank. She is the author of many research articles and participated in the writing of several World Bank flagship reports, including Decarbonizing Development: Three Steps to a Zero-Carbon Future and Shockwaves: Managing the Impacts of Climate Change on Poverty. She also develops innovative methodologies to take long-term uncertainties into account in the economic analyses of projects in sectors like transport, water, or urbanization, helping World Bank clients to deal with climate change constraints and other long-term uncertainties in the preparation of projects and strategies. She holds an engineering degree from École Nationale Supérieure de Techniques Avancées and a PhD in economics from École des Hautes Études en Sciences Sociales in Paris.