Infrastructure with private capital is clearly the global growth driver. China and India occupy centre stage.
In the temples of infrastructure, the Macquarie Group is clearly one of the high priests. This visionary Australian company has a pre-eminent position in various segments of infra-development worldwide. So, when the Macquarie Research Report on Global Infrastructure (May 2008) hits the stands, infrastructure players and observers take keen interest.
The report sets out the current global perspective by pointing out that governments, increasingly faced with growing deficits and other demands on spending, are struggling to keep up with the growing demand for infrastructure investment. For instance, government spending on infrastructure in OECD countries (Canada, Australia, France, Germany, UK, and USA) dropped to 2.2 per cent of GDP in 1997-2003 from 2.6 per cent in 1991-97. Across the globe, the increased need for infrastructure investment and the decline in government spending has created a unique phenomenon — the “infrastructure-investment gap”.
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