Investment and Infrastructure
Investment, particularly in infrastructure and small and medium enterprises, is important for economic growth, job creation and improving productivity, including in low income countries. The OECD has estimated the global infrastructure gap to be US$70 trillion by 2030, and that this gap will continue to grow.
There are adequate global funds available for infrastructure investment in banks and institutional investment portfolios (like pension funds). The G20’s challenge is to reduce the barriers preventing productive investments, so more of this capital can be connected with investment and infrastructure needs. Neither governments, nor multilateral development banks, can finance large global infrastructure needs on their own, so Australia is working with other G20 members on a multi-year approach to leverage greater private sector investment.
This includes identifying and implementing country-specific actions to improve policy and institutional settings and make countries more attractive to potential investors. These actions will form a key part of the country growth strategies that will be delivered to G20 leaders in Brisbane in November.
The multi-year approach will also include measures to facilitate the flow of savings to productive investments, including easing regulatory barriers to financing and developing local capital markets.
In September, G20 Finance Ministers and Central Bank Governors agreed to a Global Infrastructure Initiative to increase the quality of infrastructure investment. This work will complement the Global Infrastructure Facility launched by the World Bank in October, which will provide a platform for collaboration between the development banks and the private sector to fast-track infrastructure projects. Ahead of the meeting, Australia hosted an Infrastructure and Investment Forum, with opening remarks provided by the Australian Treasurer, Joe Hockey.
In October, the B20, L20 and C20 discussed infrastructure with a number of Australian civil society and business leaders in advance of the G20 Leaders' Summit in Brisbane in November, making a series of recommendations.
Download the Policy Note Increasing investment in infrastructure.
Investment and Infrastructure Working Group (IIWG)
(Co-chairs: Germany, Indonesia and Mexico)
The IIWG is working closely with the Framework Working Group (FWG) in developing the investment and infrastructure elements for inclusion in member growth strategies.
The IIWG is also working with the Development Working Group (DWG) to increase financing for infrastructure investment in developing countries. IIWG members are invited to attend relevant DWG meetings. The Global Partnership for Financial Inclusion is also progressing work on small and medium enterprise financing.
The IIWG held four officials meetings during Australia’s presidency:
- 6-7 February, Mexico City | More information
- 18-19 March, Sydney | More information
- 4-5 June, Singapore | More information
- 28-29 August, Indonesia | More information
IIWG members also attended a joint G20-B20 infrastructure roundtable held in Sydney on 21 February, and attended a joint G20-OECD roundtable on institutional investors and long-term investment in Singapore in June.