Asia-Pacific Countries with Special Needs Development Report 2017 Investing in infrastructure for an inclusive and sustainable future Tbilisi, 8 May 2017
Introduction Countries with special needs (CSN) Include LDCs, LLDCs and SIDS Continue to face structural challenges and vulnerability to external shocks Why infrastructure? A critical element of inclusive and sustainable development 2030 Agenda for Sustainable Development Programmes of Action (IPoA, VPoA and SAMOA)
Introduction (continued) Infrastructure encompasses physical infrastructure, social infrastructure and institutional infrastructure The Report focuses on Four types of physical infrastructure (transport, energy, ICT, and water supply and sanitation) Four sources of finance (public sector, private sector, bilateral donors and multilateral development banks) Report finds that LLDCs mainly focus on regional corridors and integration, for which transport infrastructure tops the list of priorities followed by the energy sector
Transport infrastructure Road density (kilometres per 1,000 km 2 of land area), 2013-2015 Rail lines density (kilometres per 1,000 km 2 of land area), 2013-2015 Non-CSN Non-CSN Bangladesh Samoa Azerbaijan Tonga Micronesia Maldives Bhutan Armenia Cambodia Kyrgyzstan Uzbekistan Tajikistan Lao PDR Fiji Nepal Turkmenistan Vanuatu Afghanistan Myanmar Solomon Islands Papua New Guinea Kazakhstan Mongolia 0 500 1 000 1 500 2 000 2 500 Armenia Fiji Azerbaijan Bangladesh Uzbekistan Turkmenistan Kazakhstan Myanmar Tajikistan Cambodia Kyrgyzstan Mongolia Nepal Afghanistan Lao PDR Bhutan Maldives Micronesia Papua New Guinea Samoa Solomon Islands Tonga Vanuatu 0 10 20 30 40 50
Energy infrastructure Access to electricity (% of population, 2013-2015) Non-CSN Uzbekistan Turkmenistan Tajikistan Samoa Maldives Kyrgyzstan Kazakhstan Azerbaijan Armenia Tonga Mongolia Nepal Bhutan Lao PDR Bangladesh Palau New Caledonia Micronesia Marshall Islands Kiribati Guam French Polynesia Fiji American Samoa Myanmar Tuvalu Afghanistan Timor-Leste Cambodia Vanautu Solomon Islands Papua New Guinea 0 20 40 60 80 100 Electric power consumption (kwh per capita), 2012-2015 Non-CSN Kazakhstan Turkmenistan Bhutan Azerbaijan Mongolia Micronesia Kyrgyzstan Armenia Tajikistan Uzbekistan Maldives Fiji Samoa Lao PDR Papua New Guinea Tonga Bangladesh Cambodia Vanuatu Myanmar Solomon Islands Afghanistan Nepal 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000
ICT infrastructure Telephone communication subscriptions per 100 population, 2013-2015 Internet users per 100 inhabitants, 2012-2015 Non-CSN Non-CSN Kazakhstan Maldives Turkmenistan Papua New Guinea Cambodia Kyrgyzstan Armenia Azerbaijan Mongolia Fiji Nepal Tajikistan Lao PDR Tonga Uzbekistan Bhutan Solomon Islands Bangladesh Vanuatu Samoa Afghanistan Micronesia Myanmar 0 50 100 150 200 Azerbaijan Kazakhstan Armenia Maldives Fiji Tonga Uzbekistan Bhutan Micronesia Kyrgyzstan Samoa Mongolia Tajikistan Vanuatu Nepal Lao PDR Cambodia Turkmenistan Myanmar Bangladesh Solomon Islands Afghanistan Papua New Guinea 0 10 20 30 40 50 60 70 80
Water supply and sanitation infrastructure Access to improved water supply (left) and sanitation (right) and GDP per capita
ESCAP Access to Physical Infrastructure Index (APII) APII : ESCAP APII captures 8 indicators, covering four dimensions (Transport, Energy, ICT, and water supply and sanitation) Country coverage: 41 countries in Asia and the Pacific, 23 CSN, 15 developing countries and 3 developed countries Methodology: Simple average (equal weights), and each of the four sectoral indices are based on the standardized indicators that is a combination of two indicators for each of the sectors Benchmarking: APII score of developed countries serves as a long-term benchmark of CSN to be achieved by 2030, while the average score for the 15 developing countries serves as the medium-term benchmark to be achieved between 2025 and 2030.
Infrastructure gap remains
APII score Country groupings APII score APII rank Country groupings APII score APII rank Countries with special needs 0.288 Developing countries 0.431 Kazakhstan 0.520 6 Singapore 0.708 2 Azerbaijan 0.476 9 Korea, Republic of 0.664 3 Maldives 0.463 10 Malaysia 0.502 7 Armenia 0.453 11 Russian Federation 0.495 8 Fiji 0.394 17 Turkey 0.440 12 Tonga 0.371 20 Georgia 0.436 13 Kyrgyzstan 0.370 21 Viet Nam 0.419 14 Uzbekistan 0.365 22 Thailand 0.418 15 Samoa 0.350 23 Sri Lanka 0.407 16 Tajikistan 0.309 26 Islamic Republic of Iran 0.394 17 Bangladesh 0.277 28 China 0.391 19 Bhutan 0.269 29 Philippines 0.336 24 Turkmenistan 0.269 29 Pakistan 0.311 25 Mongolia 0.235 32 Indonesia 0.278 27 Micronesia 0.232 33 India 0.260 31 Lao PDR 0.225 34 Nepal 0.217 35 Vanuatu 0.200 36 Developed countries 0.633 Myanmar 0.198 37 Japan 0.712 1 Cambodia 0.186 38 New Zealand 0.605 4 Solomon Islands 0.113 39 Australia 0.582 5 Afghanistan 0.072 40 Papua New Guinea 0.070 41
Public and private sectors PPP, 2006-2015, % of GDP LDC LLDC SIDS Non-CSN Lao PDR Tajikistan Cambodia Armenia Bhutan Nepal Afghanistan Bangladesh Uzbekistan Vanuatu Myanmar Fiji Kyrgyzstan Kazakhstan Azerbaijan Maldives Papua New Guinea Tonga Turkmenistan Mongolia Samoa 1.6 0.6 0.3 0.6 3.8 3.1 2.4 1.8 1.4 1.3 0.9 0.9 0.7 0.7 0.6 0.6 0.5 0.5 0.3 0.2 0.1 0.1 0.1 0.0 Energy ICT Tranport WSS 18.6 Domestic public finance Traditional sources of finance Expected to remain a significant source Should be used to crowd in private investment Private sector participation Concentrated in a few mega energy projects and privatization of ICT infrastructure Has potential to play a bigger role but requires a stable investorfriendly climate 0 5 10 15 20
Infrastructure financing needs Annual infrastructure financing needs, 2016-2030 Large infrastructure financing needs: 10.5% of GDP annually A major portion is in the transport sector, but needs are growing for ICT and energy Climate change adaptation and mitigation will require additional 2.2% of GDP
Infrastructure financing gaps
Filling the funding gap: 1 - tax collection Tax-to-GDP ratios in selected Asia-Pacific countries, 2014
Filling the funding gap: 2 public expenditure management Public investment and infrastructure quality
Filling the funding gap: 3 private sector engagement Private sector engagement has been severely hampered Risk-return profile needs to be adjusted by Government support measures Governments can also Partner with multilateral development banks to increase financial viability Enhance coordination across Government agencies to establish a infrastructure project pipeline Facilitate innovative PPP No one-size-fits-all approach to development financing
The way forward In the short term: Prioritize which sectors are to be developed Integrate policy approaches across sectors Identify priorities, partners, instruments and support measures Short-term Medium-term Long-term 70% 60% 50% 40% 30% 20% 10% 0% 60% 50% 40% 30% 20% 10% 0% 60% 50% 40% 30% 20% 10% 0%
The way forward In the medium to long term: Mobilize domestic public finance Develop capital markets (if domestic markets are sufficiently large) Enhance institutional and technical capacity for planning, maintaining and managing infrastructure Most relevant challenges for infrastructure development and maintenance 80 70 60 50 40 30 20 10 0 Acquiring and transfer of Technology Financial accessibility Technical knowhow Development cooperation Institutional capacity Effective governance
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