Bridging Borders - Asian Infrastructure Finance 2019

Growth Belts

GROWTH BELTS: MAPPING AN OVERLAND FUTURE FOR ASIAN TRADE

Central Asia is vast and remote, but increasingly connected.
With northern (Kazakhstan‐Russia) and southern (Caspian) routes in Eurasia, and further south connections to SASEC and five‐nation corridor initiative.
USD38 billion investments needed until 2030 for rail upgrades and new rail.

Latin America
and Asia Trade

LATIN AMERICA AND ASIA TRADE: A FUTURE BEYOND COMMODITIES FOR MANUFACTURES

Significant growth in Latin America and Asia trade relationship but with two key imbalances.
Some industrial sectors in Latin America have potential for greater Asia links.
Tourism starts from a low base but is growing fast.
Infrastructure investments needed, but need alignment with the industry.

The Green Imperative

THE GREEN IMPERATIVE: DEVELOPING INTERCONNECTED LOW‐CARBON POWER NETWORKS IN ASIA

Asia’s electricity trade is still very small (one percent traded, compared to 11 percent in Europe).
Asia supergrid and various regional connections for more cross‐border electricity trade, especially to bring renewable sources of electricity to markets.
Preliminary cost‐benefit analysis suggests that transmission lines are two to three times more expensive than pipelines (adjusted for energy) but gap narrows once carbon cost and potential obsolescence are factored in.
Investment needs are large and should begin at the regional level.

Airports, Airlines
and Visas

AIRPORTS, AIRLINES AND VISAS: FACTORS SHAPING CROSS‐BORDER TOURISM

International tourism in Asia is significant and growing fast.
Airline routes (and to a smaller extent airports) are important supporting infrastructure.
Visa exemptions, and surprisingly mutual FTAs, are also important.
Demand is rising fast; greening aviation through more efficient airports and aircrafts, switching to sustainable biofuel sources and route optimization are key to meeting demand.

Infrastructure 3.0

INFRASTRUCTURE 3.0: HOW NEW TECHNOLOGY WILL FACILITATE INTRA‐ASIAN TRADE AND INTEGRATION

Technological changes (overlaps and convergence in the areas of information, trust and transport) can transform supply chains and boost productivity.
Fundamentally and to underpin supply chains, investment in hard infrastructure and ICT is still needed.
Some Asian countries identified at risk of falling behind, some would require public money or MDB assistance.

Connectivity,
Income Growth & Poverty Reduction

CONNECTIVITY, INCOME GROWTH AND POVERTY REDUCTION

Domestic connectivity clearly supports income growth and poverty reduction.
The relationship between international connectivity (and trade) with income growth and poverty reduction is more complex and nuanced.
Research shows that transport infrastructure matters, even after accounting for other effects.
Domestic and international connectivity should be seen as complementary for development.