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Social Infrastructure Finance and Institutional Investors. A Global Perspective

Author

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  • Inderst, Georg
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. Private sector investment in social infrastructure has widely fallen back over the last decade - this in contrast to economic infrastructure. One of the outcomes of the last global (financial) crisis 2007/08 was a slow revival of economic infrastructure policies, and a growing involvement of institutional investors. This is the first, more systematic account of social infrastructure investment from an international perspective, leading to several key conclusions. The public sector will remain the dominant funding and financing source. Nonetheless, much more private capital could flow with greater clarity on social assets and projects, given their very diverse specific characteristics. There are various investment strategies that can realistically be improved and expanded. Sustainability, impact and SDG investing open a new door for asset owners.

Suggested Citation

  • Inderst, Georg, 2020. "Social Infrastructure Finance and Institutional Investors. A Global Perspective," MPRA Paper 99239, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:99239
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    References listed on IDEAS

    as
    1. Inderst, Georg, 2016. "Infrastructure Investment, Private Finance, and Institutional Investors: Asia from a Global Perspective," ADBI Working Papers 555, Asian Development Bank Institute.
    2. Francois Bergere, 2016. "Ten years of PPP: An initial assessment," OECD Journal on Budgeting, OECD Publishing, vol. 15(1), pages 31-123.
    3. Inderst, Georg, 2017. "UK Infrastructure Investment and Finance from a European and Global Perspective," MPRA Paper 79621, University Library of Munich, Germany.
    4. Eduardo Engel & Ronald D. Fischer & Alexander Galetovic, 2020. "When and How to Use Public-Private Partnerships in Infrastructure: Lessons from the International Experience," NBER Chapters, in: Economic Analysis and Infrastructure Investment, pages 333-364, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Surbhi Gupta & Anil Kumar Sharma, 2022. "Evolution of infrastructure as an asset class: a systematic literature review and thematic analysis," Journal of Asset Management, Palgrave Macmillan, vol. 23(3), pages 173-200, May.
    2. Inderst, Georg, 2021. "Financing Development: Private Capital Mobilization and Institutional Investors," EconStor Preprints 232266, ZBW - Leibniz Information Centre for Economics.
    3. Bouteska, Ahmed & Sharif, Taimur & Abedin, Mohammad Zoynul & Ghouli-Oueslati, Jihene, 2023. "Relocating investments by Tunisian insurance and pension funds towards alternative assets opportunities," Journal of Policy Modeling, Elsevier, vol. 45(3), pages 609-629.
    4. Borys Cie?lak & Paula Nagler & Frank van Oort, 2023. "Regional Capital No More. How the Reform of the Territorial Government has Marginalized Polish Middle-sized Cities," Tinbergen Institute Discussion Papers 23-001/VIII, Tinbergen Institute.
    5. Danny MacKinnon & Louise Kempton & Peter O’Brien & Emma Ormerod & Andy Pike & John Tomaney, 2022. "Reframing urban and regional ‘development’ for ‘left behind’ places [The shadow of the Pithead: understanding social and political attitudes in former coal mining communities in the UK]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(1), pages 39-56.

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    More about this item

    Keywords

    social infrastructure; infrastructure investment; infrastructure finance; infrastructure policy; public-private partnerships; institutional investors; pension funds; infrastructure funds; sustainability investing; impact investments;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G2 - Financial Economics - - Financial Institutions and Services
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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