Flagship Study on Infrastructure and Regional Cooperation

ADBI is undertaking a study on Infrastructure and Regional Cooperation in close collaboration with ADB headquarters. This study is the second ADB flagship study, following the Emerging Asian Regionalism study, which was completed in May.

Infrastructure plays an important role in promoting rapid economic growth in Asia and making the growth more inclusive by allowing its benefits to be shared with poorer groups and communities, particularly in remote areas and small and landlocked countries. Infrastructure can also facilitate the access of the poor to basic services and help to increase their capacity for generating income. The rapid economic growth in several major developing countries has caused huge and visible pressure on infrastructure. Lack of adequate infrastructure can hinder potential growth, weaken international competitiveness, and hamper poverty reduction efforts. Regional cooperation can play a crucial role in meeting infrastructure needs in Asia through formulating, financing, and implementing regional infrastructure projects and maintaining existing infrastructure.

The objective of this study is to examine key issues and challenges facing infrastructure and regional cooperation in Asia. The study focuses on broad and cross-cutting issues through both empirical and case studies. Examples of best practices will be drawn mainly from key sectors (sub-sectors) such as transport (roads, railways, airways, and ports) and energy (electricity and gas). The study will examine both “software” and “hardware” issues affecting infrastructure and regional cooperation.

The study aims to serve as a definitive knowledge product primarily for policymakers in the region. It is intended to provide policymakers, concerned officials from private and public sectors, and other experts involved in Asian infrastructure with information and guidance on key issues concerning developing regional infrastructure projects through regional cooperation. It will contribute to the ongoing dialogue on regional economic cooperation in Asia. The study will attempt to outline what the region needs to address in terms of policies and best practices to meet these challenges.

The study is being undertaken in two segments and will be published in a two-volume book. The first segment is currently engaging experts to prepare around 20 discussion papers on relevant topics falling under 4 broad themes: (i) trade and logistics; (ii) policies and institutions; (iii) financing infrastructure; and (iv) transnational infrastructure networks. It will also discuss policy recommendations. The second volume of the book will be prepared based on selected discussion papers.

The inception workshop for the study at ADBI on 18–20 February 2008 brought the participation of 40 regional professionals and experts, organized a core study group for the project, and conducted brainstorming sessions. The authors of discussion papers and book chapters presented their ideas for discussion in order to refine them and ensure that their research would be cohesive with the thematic components of the overall study.

Background papers highlighting the vision and goals of infrastructure and regional cooperation in Asia were also presented by regional experts. Experts from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) spoke on Pan-Asia highways, railways, and energy networks. Sub-regional strategies for infrastructure and regional cooperation were also presented by ADB experts with focus on issues and challenges of infrastructure in several groupings, including Central Asia Regional Economic Cooperation, the Greater Mekong Sub-region, South Asia Subregional Economic Cooperation, and the Pacific.

The second workshop will be conducted in two parts: one on financing infrastructure and policies and institutions to be held on 12–13 June 2009 in New Delhi and another on trade and logistics and transnational infrastructure networks on 3–4 July 2009 in Bangkok. At these events, the paper and chapter authors will present their drafts. The drafts will be improved based on comments offered by policymakers and experts from India and Thailand at the events.