The Global Infrastructure Investment Deficit

by Richard (Rick) Mills
Ahead of the Herd

Infrastructure is the physical systems – the roads, power transmission lines and towers, airports, dams, buses, subways, rail links, ports and bridges, power plants, water delivery systems, hospitals, sewage treatment, etc. – that are the building blocks, the Legos, that fuel a countries, a cities or a community’s economical, social and financial development.

There is an undeniable, an unarguable connection between the quality of a countries economic competitiveness and its infrastructure. Yet study after study shows the global economy running an infrastructure deficit of anywhere from US$ 40 trillion to $70 trillion.

Booz Allen Hamilton, in a 2007 report, estimated that investment needed to “modernize obsolescent systems and meet expanding demand” for infrastructure worldwide between 2005 and 2030 was around US$ 41 trillion.

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