Infrastructure Financing in South Asia

South Asia seems to defy the theory that development of infrastructure is required for sustained economic growth. Despite the severe and persistent shortage of quality infrastructure, it is the fastest growing region in the world. This paper argues that the trend cannot continue. To sustain growth and deal with climate change, South Asia needs to invest almost 9% of its gross domestic product on infrastructure development over 2016–2030, higher than most other subregions of Asia. This paper discusses public and private sector financing of infrastructure and examines the factors driving infrastructure investment.