Econographics
Oct 31, 2022
The global infrastructure financing gap: Where sovereign wealth funds and pension funds can play a role
By
Amin Mohseni-Cheraghlou and Naomi Aladekoba
Having more than $65 trillion in assets, institutional investors such as SWFs and pension funds are uniquely positioned to bridge low-income economies’ infrastructure financing gap in the coming decades. The Bretton Woods Institutions (BWI) can encourage investment in developing countries’ infrastructure through providing various guarantee and insurance mechanisms, thereby reducing risk for private investors.