Boao Forum: Use Fiscal Policy to Boost Infrastructure Spending

By Stephen P. Groff

Developing Asia urgently needs further investments in infrastructure to sustain growth and improve social equity.

At last week's 2017 Boao Forum for Asia’s Annual Conference, ADB Vice-President Stephen Groff explained how fiscal policy can help maintain growth momentum in developing Asia and the Pacific.

Fiscal policy is a key issue for the region, given the need to fund structural reforms and deliver essential public services. Mr. Groff says that emerging Asian economies should focus their fiscal policies on delivering investments needed to sustain growth over the medium term.

The region, he notes, urgently needs further investments in social sectors like education and healthcare, as well as in infrastructure. A recent ADB report estimates regional infrastructure investment needs at $1.7 trillion per year until 2030 to sustain current growth and respond to climate change.