Financing Infrastructure Connectivity for Economic Corridor Development | Asian Development Bank

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Financing Infrastructure Connectivity for Economic Corridor Development

Event | 30 - 31 August 2017 Bangkok, Thailand

Background

Connectivity and economic activity are inextricably bound together. The economic corridor approach emphasizes the integration of infrastructure improvement with economic opportunities such as trade and investment, and it includes efforts to address the social and other outcomes of increased connectivity. ADB devised a set of three characteristics that typifies an economic corridor. First, it covers a small geographical space straddling a transport artery such as a road, rail, or canal. Second, it emphasizes bilateral rather than multilateral initiatives, focusing on strategic nodes at border crossings between two countries. Last, it highlights physical planning so that infrastructure development achieves positive benefits. In a national context, the concept is now increasingly used for development programs.

Economic corridors directly support some of the strategic thrusts of countries involved in the process of improving their competitiveness—(i) strengthening infrastructure linkages through a multisector approach, (ii) facilitating cross-border trade and investment, and (iii) enhancing private sector participation in development. The goal is to develop efficient infrastructure connectivity that includes highways, railways, and seaports, and which allows goods and people to move around the region without significant impediments, or excessive costs or delays. An improvement in infrastructure connectivity is expected to catalyze economic growth and regional development, thereby reducing poverty.

In most developing economies, the lack of economic corridors, viewed as stocks of public capital, is a major constraint on growth. Inadequate infrastructure connectivity causes congestion, resulting in diminishing returns to capital in industry. The low rate of return acts as a disincentive to investment. This implies a low rate of labor absorption, which perpetuates a vicious circle of poverty. Furthermore, an economic corridor with good infrastructure connectivity, such as a highway, railway, and seaport, is a bulky commodity, since it calls for a large investment of capital and long gestation lags.

Objectives

  • To provide an overview of the economic corridor development and possible methods to develop and finance infrastructure connectivity, which includes highways, railways, and seaports.
  • To promote discussion on policy insights and country experiences related to financing infrastructure connectivity for economic corridor development among government officials and experts.

Participants

Around 16 government officials from 8 developing countries in Southeast Asia (Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Viet Nam) as well as experts in economic corridor development and infrastructure connectivity.

Participant responsibilities

Actively join discussions and share views and experiences.

Output

  • Better knowledge and enhanced capacity of developing Asia and the Pacific countries for understanding the various aspects of financing infrastructure connectivity for economic corridor development.
  • Enhanced dialogue among government officials and experts on key issues related to the opportunities and challenges of developing infrastructure connectivity, which includes highways, railways, and seaports.
  • Presentation materials for upload to ADBI website.

How to register

By invitation only.

Language

English, Chinese, Russian

Partners

Public Debt Management Office, Ministry of Finance, Thailand

Time of event

09:00 – 18:00