Infrastructure Development In Apec

Author : Yul Kwon
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (137 download)

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Download or read book Infrastructure Development and Investment in APEC Regions written by Yul Kwon and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: There are growing infrastructure needs in the APEC region as their economies have expanded. However, both developing and developed economies face infrastructure gaps because of the mismatch between infrastructure demands and supplies. Developing countries require developing and constructing new infrastructure capacities. In developed countries, however, it is more important to maintain existing infrastructure and replace time-worn infrastructure than to develop new ones. In most of the APEC member economies, electricity production and electricity consumption per capita in 2010 have increased compared to those of 1990. However, 800 million people in Asia still have no access to basic electricity services. In addition, electricity-related infrastructure should be expanded to meet the increased demands brought about by economic growth, population growth and industrialization. Transportation infrastructure has also been improved compared to that of 1990. In general, total road networks, road density, percentage of paved roads, and total rail route have been expanded and increased. However, the expanded infrastructure is still not sufficient to be able to satisfy the basic infrastructure needs in most developing countries because the initial infrastructure was very poor. In addition, emerging economies, such as China, Russia, and Indonesia, also have to enlarge transport infrastructure capacity to satisfy the demands derived from expansion of economy and to pursue sustainable development. Telecommunication and ICT infrastructure also ought to be enlarged even if the number of fixed broadband and mobile cellphone subscribers increased for the period 2000-2012. This is because the number of subscriptions of fixed broadband Internet in developing countries is less than 20 out of 100 and thus, the demands for it will continue to increase. Furthermore, as the penetration rates of smartphones and tablet PCs increase, infrastructure related to wireless Internet networks need to be additionally constructed as well. As shown in Table 1, Asia's infrastructure needs amount to approximately USD 8.22 trillion during the period 2010-2020 according to ADB's estimation. This means USD 800 billion are needed annually to meet the investment demands of the region. Around 68% of them are required for newly constructed infrastructure and the remaining 32% are required for maintenance or replacement of existing infrastructure. However, half of the total infrastructure investment demands in Asia come from China. The infrastructure needs in East and Southeast Asia, where a lot of APEC member economies are included, are the highest among Asia region. This is because infrastructure demands of emerging economies, such as China and Indonesia are growing as their scales of economy become larger and larger. Figure 1 represents the infrastructure investment demands of East and Southeast Asia as a percentage of the estimated GDP by sector for the period 2010-2020. Total infrastructure investment needs account for 5.54% of the estimated GDP. Electricity-related infrastructure investments are mostly needed throughout the region and this is followed by transportation, telecommunications and water and sanitation.