The World Bank goes deep on the infrastructure gap — the distance between what needs to be spent and current spending trends.
It’s not pretty. Main points (in no particular order):
- By 2040, the world population will increase by 2 billion, or 25%
- The global city-based population will grow by 46%
- By 2040, global infrastructure need will reach $97 trillion
- Forecasted spending shortfall is $19 trillion
- Half of infrastructure spending needs are in Asia
- China needs to invest $28 trillion in infrastructure
- The United States has the most significant investment gap: $3.8 trillion
- China has the second largest investment gap: $1.9 trillion
- Roads and electricity are the largest needs
The central tragedy of infrastructure is that when deep public-private investment is most needed, global governance — the lead element historically — is in ruins. Watch this space.