Despite recent volatility in the financial markets, the
world is still experiencing the greatest economic expansion in
history. Asia is poised to grow faster than any other area in
the next decade, but will not reach its potential unless it
reduces the growing number of infrastructure bottlenecks.
Current infrastructure in Asia lags behind international
standards in quantity and quality in key areas such as water,
waste disposal, energy and transportation. According to recent
estimates by the Asian Development Bank, between $380 billion
and $450 billion is needed annually for the next few years
– but less than a third of that is being
The gap between the supply and demand for infrastructure is
not caused by lack of money in Asia or elsewhere. It is due to
the deficit in good governance, the lack of sound public
institutions and the inability of the local governments and the
private sector to...