Governments can further expand and finance their social protection programs through an increased focus on and commitment to infrastructure investment, according to Naoyuki Yoshino, dean of the Asian Development Bank Institute.
Infrastructure investments always come with risk, but provide governments and other development stakeholders high rewards if implemented effectively, according to the head of the Tokyo-based institution.
Yoshino emphasized the need for governments to create an enabling policy and regulatory environment for these investments to maximize impact and secure an adequate rate of return. The ADBI dean also asserted that the private sector can play a significant role in these investments by bringing both capital and expertise to the table.
“Highway and railway [projects] can produce spillover effects, and that can increase tax revenues into the region,” he told Devex during the Asia-Pacific Social Protection Week at the Asian Development Bank headquarters in Manila, Philippines, last week. “Part of those tax revenues should be returned to the investors such as pension funds and insurance.”
Watch the video above to know more about Yoshino’s insights on the role of private sector in infrastructure investment and social protection, what governments should do more to allow such synergies to happen, and how infrastructure can provide a platform for social protection expansion.
Devex is the exclusive media partner of the Asian Development Bank’s Asia-Pacific Social Protection Week.
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