Social Infrastructure Finance and Institutional Investors. A Global Perspective

Inderst, Georg (2020): Social Infrastructure Finance and Institutional Investors. A Global Perspective.

Abstract

Social infrastructure has endured a long period of neglect in most developed and emerging countries, with chronic underinvestment exposed by the coronavirus crisis 2020. The financial crisis 2007/08 led to a slow revival of economic infrastructure policies, and a growing involvement of institutional investors. In contrast, private sector investment in social infrastructure has widely fallen back over the last decade. Will the next decade see a renaissance of – public and private - social infrastructure investment?

This is the first systematic account of social infrastructure investment from an international perspective, leading to several key conclusions for policy makers and investors. The public sector will remain the dominant source for funding and financing. Nonetheless, much more private capital could flow with greater clarity on social assets, given their very diverse characteristics across sectors and projects. Several investment strategies can realistically be improved and expanded. Sustainability, impact and SDG investing open a new door for asset owners.

• Item Type: MPRA Paper
• Language: English
• Keywords: social infrastructure, infrastructure investment, infrastructure finance, infrastructure policy, public-private partnerships, institutional investors, health infrastructure, infrastructure funds, sustainability investing, impact investments
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; G - Financial Economics > G1 - General Financial Markets > G18 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock; H - Public Economics > H5 - National Government Expenditures and Related Policies > H57 - Procurement; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H75 - State and Local Government: Health ; Education ; Welfare ; Public Pensions; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O18 - Urban, Rural, Regional, and Transportation Analysis ; Housing ; Infrastructure; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R51 - Finance in Urban and Rural Economies

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