This paper proposes a floating-interest-rate infrastructure bond, where the interest of a government bond is paid to investors during the period of construction and the early period of operation. Unlike the usual government bond, which provides a fixed interest rate, the proposed floating-interest-rate infrastructure bond pays a floating interest, the rate of which depends on spillover tax revenues. Effective infrastructure projects have a positive effect on the economic growth of a region, known as the spillover effect. When user charges and the return from spillover tax revenues are below the fixed rate of the government bond, the interest rate will equal to the fixed rate of the government bond. In this case, investors in the infrastructure will receive interest on the government bond at the minimum rate. As the spillover effect of the infrastructure increases, the rate of return for infrastructure investment will become greater than the fixed rate of the government bond. The success of the floating-interest-rate infrastructure bond depends on the spillover effect and on transparency and accountability. Policy recommendations are provided in this paper on how to increase the spillover effect and improve transparency and accountability. 

China’s Belt and Road Initiative (BRI) hopes to deliver trillions of dollars in infrastructure financing to Asia, Europe, and Africa. If the initiative follows Chinese practices to date for infrastructure financing, which often entail lending to sovereign borrowers, then BRI raises the risk of debt distress in some borrower countries. This paper assesses the likelihood of debt problems in the 68 countries identified as potential BRI borrowers. We conclude that eight countries are at particular risk of debt distress based on an identified pipeline of project lending associated with BRI.

Because this indebtedness also suggests a higher concentration in debt owed to official and quasi-official Chinese creditors, we examine Chinese policies and practices related to sustainable financing and the management of debt problems in borrower countries. Based on this evidence, we offer recommendations to improve Chinese policy in these areas. The recommendations are offered to Chinese policymakers directly, as well as to BRI’s bilateral and multilateral partners, including the IMF and World Bank. 

The detection of urban expansion through digital processing of satellite images provides valuable information for understanding the dynamics of land use change and its spatial relationship with environmental factors. In order to apply or generate effective land-use planning policies, it is essential to have a historical record of the regional distribution of human settlements, an element that is practically non-existent in our country. For this reason, this text aims to determine the urban growth rate during the period 2000–2014 in the state of Hidalgo, Mexico, and to identify potential expansion zones from Landsat images. Six Landsat scenes were used for the spatial analysis of the state urban coverage and their relationship with the road influence area was evaluated. Two maps were obtained as cartographic products: one of urban coverage distribution and another of the municipalities with the greatest expansion, whose areas are located in the Valle del Mezquital region. However, Mineral de la Reforma, Tetepango, Tizayuca and Pachuca de Soto stand out for their growth rates during the study period: 183.44%, 102%, 94% and 68.5%, respectively. In total, the state urban area in-creased 72.3 km² from 2000 to 2014 with an average growth rate of 1.8% per year. Such growth was associated with the areas of influence of important road infrastructure, such as the Libramiento Arco Norte in Hidalgo. Therefore, the Mezquital Valley and the Mexico Basin are considered as potential regions for urban expansion in the state.

This exploratory study aims to identify the main characteristics and relationships between artificial intelligence (AI) and broadband development in Asia and the Pacific. Broadband networks are the foundation and prerequisite for the development of AI. But what types of broadband networks would be conducive are not adequately discussed so far. Furthermore, in addition to broadband networks, other factors, such as income level, broadband quality, and investment, are expected to influence the uptake of AI in the region. The findings are synthesized into a set of policy recommendations at the end of the article, which highlights the need for regional cooperation through an initiative, such as the Asia-Pacific Information Superhighway (AP-IS). 

The study looks into how governance qualities of decentralized governments mediate the impacts of decentralization on development. Based on a set-oriented approach, the study analyzed data from a nation-wide survey conducted with business managers from all provinces in Indonesia, and found evidence that, despite the country’s uniform decentralization reform, individual provinces exhibited great variation in the qualities of their various physical and institutional infrastructures. Notably, these qualities assumed nested relations, with order and security as well as accountability and rule of law seemingly being the preconditions of basic infrastructure provision as well as local governments’ coordination. Moreover, business investment decisions (measured as staff expansion and product innovation) were found to vary with some specific combinations of these infrastructural conditions. The result provides evidence supporting the argument that both physical and institutional infrastructures are instrumental to realize the supposed benefits of decentralization and supports the recent call of the literature to look into the political-institutional complex in the process of decentralization reform.