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road crashes

Why sustainable mobility matters

Hartwig Schafer's picture

On roads everywhere, we are calling for greater protection for our children

Zoleka Mandela's picture


Editor's note: this essay was the Overall Winner in the 2015 PPIAF Short Story Competition.


India needs large investments in infrastructure for accelerating inclusive growth aimed at poverty alleviation and improvement in quality of life. Given the fiscal constraints that leave little room for expanding public investment at the scale required, Public-Private Partnership (PPP) has emerged as the principal vehicle for attracting private investment in infrastructure.

However, much of the private capital required for PPP projects has to be raised from domestic financial institutions that do not have the capacity or instruments to provide long-tenure debt for projects having a long payback period. While financial sector reform is a long-drawn process, this essay demonstrates how a well-designed intervention can help in bypassing the extant constraints without compromising on the integrity and prudence associated with debt financing.

By setting up a government-owned financial institution with a mandate to provide about 30 percent of the project debt, a large volume of long-term debt was mobilised while leaving the remaining 70 percent to be financed by the normal banking system. This was perhaps, a first-of-its-kind financial institution which not only lent long-term funds, but also gave a strong signal to the banking system to participate proactively in the financing of infrastructure projects. 

As a result, private investments aggregating about US$114 billion have been facilitated without any dilution in the prudential norms of banking. This essay explains the evolution and success of this initiative.

Five Opportunities for 21st-Century Transport

Jose Luis Irigoyen's picture

 a reconstruction and development tool © Gates Foundation

In post conflict countries, those who have made it out of the country are keenly aware that the livelihoods of those left behind vitally depend on remittance transfers. While concerns have been expressed about the possibility that remittances may stoke conflict, the majority view is that Diaspora support from abroad can contribute to democracy. It has been clearly established that private remittances are of central importance for restoring stability by enhancing human security in strife-torn societies. As in much of Sub-Saharan Africa, due to the predominantly informal nature of remittance delivery mechanisms, the magnitude of remittances to the economies of these regions has been under-estimated.

The Way We Move Will Define our Future

Marc Juhel's picture
Mobility is a precondition for economic growth: mobility for access to jobs, education, health, and other services. Mobility of goods is also critical to supply world markets in our globalized economy. We could say that transport drives development.