By spending just 3% more on infra, developing nations can save $4.2 trillion: World Bank

By Moderator June 29, 2019 12:12

Just 3 percent more investment in infrastructure assets can save developing countries $4.2 trillion, according to a report jointly published by the World Bank and the Global Facility for Disaster Reduction and Recovery.

More in News

  • These low- and middle-income countries suffer an estimated loss of $391-$647 billion due to damage and disruption in infrastructure assets and services in a year, highlighted the report.
  • But despite investing around $1 trillion every year, the quality and adequacy of infrastructure services are not up to the mark, it added.
  • Spending between $11 billion and $65 billion a year by 2030 can help these countries create reliable infrastructural assets, estimated the report.
    • The report added that making such assets and services climate resilient will help these countries earn $4 for each $1 spent

Importance of investment in infrastructure assets

  1. To minimize the consequences of natural disasters: After examining four essential infrastructure systems — power, water and sanitation, transport, and telecommunications — the researchers found that making them more resilient is critical, not only to avoid costly damage, but also to minimize the wide-ranging consequences of natural disasters.
    • Africa and South Asia bear the highest losses owing to unreliable infrastructure. Power systems are more vulnerable to natural shocks in poorer countries than in richer countries. Storms of the same intensity are more likely to cause outages in Bangladesh than in the United States.
  2. To avoid costly damage:
    • Interruptions in the water supply are estimated to cost between $88 billion and $153 billion a year to all developing nations. Waterborne diseases stemming from an intermittent water supply lead to medical treatment costs and lost incomes between $3 billion and $6 billion a year, according to the report.
  3. To meet the Sustainable Development Goals: Strengthening the infrastructure to meet the Sustainable Development Goals will require substantial investments in maintenance of existing assets.
    • However, infrastructure management is not just about spending more, but also about spending better, according to the report that suggested targeted actions.


  • According to World Bank providing appropriate finances to create risk-informed master plans remains a key challenge in creating disaster-resilient assets.

Way Ahead

  • Resilience should be included in the regulations and decision-making process through data, tools, and skills will be essential to create and maintain the assets.
    • Without geospatial information on locations exposed to natural disasters, strengthening the whole system would cost 10 times more — between $120 billion and $670 billion
  • Combining infrastructure with nature-based solutions too reduces countries investment needs.
    • In the Philippines, mangroves, reefs and other natural systems prevent more than $1 billion in annual disaster losses.

Also read: The state of Indian prisons

Impressive tortoise discovered in Arunachal Pradesh


By Moderator June 29, 2019 12:12