Financing Infrastructure for Connectivity: Policy Implications for Asia

In view of Asia's huge infrastructure needs, as well as the reduced demand for exports due to the ongoing global financial and economic crisis, infrastructure projects offer a way of increasing regional demand and intraregional trade. This policy brief proposes various ways to tap Asia's huge financial resources to fund essential infrastructure. The key challenges include integrating financial markets to mobilize Asian savings for infrastructure, and providing proper incentives to investors, particularly those in the private sector, by developing appropriate policies, regulations, and institutions and long-term innovative financial instruments.infrastructure asia; asia financial reserves; investment incentives