In 2014, G20 Leaders agreed to a new initiative (the ‘Global Infrastructure Initiative’) to increase public and private infrastructure investment in acknowledgement of the importance of quality infrastructure in boosting productivity and economic growth.
This led to the timely establishment of the Global Infrastructure Hub – based in Sydney, Australia and Toronto, Canada – which provides dedicated resources to help implement the agenda under the initiative and deliver on the G20’s objectives. By facilitating knowledge sharing, highlighting reform opportunities and connecting the private and public sectors, the Global Infrastructure Hub helps improve the functioning of infrastructure markets.
The Hub was initially given a four-year mandate from the G20 to lower barriers to investment, increase the availability of investment-ready projects, assist with matching potential investors with projects, and better policy delivery. However, in 2017, the Infrastructure Hub underwent a process of self-evaluation to determine whether it was making a positive impact on infrastructure development. It was found that its impact had been low because of its short implementation time. Consequently, in 2018, the G20 Finance Ministers and Central Bank Governors endorsed the extension of the Hub’s mandate for a further four years, to the end of 2022.
The Global Infrastructure Hub has been commended for filling a data gap in the infrastructure development space and for showing good potential in the infrastructure compass and risk matrix tools. The infrastructure compass allows users to explore the capability of 56 countries to deliver infrastructure projects, identify priority reforms and pinpoint leading practices across infrastructure governance & institutions, regulatory frameworks, permit, planning, procurement and delivery. The risk matrix tool has been designed to assist developing economies to better assess potential infrastructure investment risk. In sum, the Global Infrastructure Hub plays a crucial role in advocating for infrastructure support at the G20 and in leveraging G20 support to transform investment processes and thereby strengthen and enhance the global infrastructure market.
