This paper contributes to a long-standing debate in development practice: under what conditions can externally established participatory groups engage in the collective management of services beyond the life of a project? Using 10 years of panel data on water point functionality from Indonesia’s rural water program, the Program for Community-Based Water Supply and Sanitation, the paper explored the determinants of subnational variation in infrastructure sustainability. It then investigated positive and negative deviance cases to answer why some communities successfully engaged in system management despite being located in difficult conditions as per quantitative findings and vice versa. The findings show that differences in the implementation of community participation, driven by local social relations between frontline service providers, that is, village authorities and water user groups, explain sustainable management. This initial condition of state-society relations influences how the project is initiated, kicking off negative or positive reinforcing pathways, leading to community collective action or exit. The paper concludes that the relationships between frontline government representatives and community actors are important and are an underexamined aspect of the ability of external projects to generate successful community-led management of public goods.

Developing countries have witnessed a rise in infrastructure spending over the past decades; however, infrastructure spending in most developed countries, particularly the US, continues to decline. As a result, in 2021, the US Congress passed a Bipartisan Infrastructure Bill, which invests $1 trillion in the country’s infrastructure every year. Using the principal component analysis and VAR estimation, we analyzed the impact of infrastructure (transportation and water, railway networks, aviation, energy, and fixed telephone lines) on economic growth in the US. Our findings show that infrastructure spending positively and significantly impacted economic growth. Additionally, the impulse response analysis shows that shocks to infrastructure spending had positive and persistent effects on economic growth. Our results suggest that infrastructure investment spurs economic growth. Based on our findings, sustained public spending on transport and water, railway networks, aviation, energy, and fixed telephone lines infrastructure by the US government will positively impact economic growth in the country. The study also suggests that policies that promote infrastructure spending, such as the Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act) passed by the US Congress, should be enhanced to boost economic growth in the US. 

This study investigates the impact of the Belt and Road Initiative (BRI) on the construction sector in Southeast Asia, focusing on Thailand, Malaysia, and Cambodia. Qualitative research approach is used to analyze the implications of Chinese investments in these countries, exploring both the opportunities and challenges faced by Chinese investors. Key research questions address the resilience of the construction sector, the obstacles encountered by investors, and the influence of policy on the construction business. Through interviews with CEOs and senior managers of major construction companies and a review of relevant documents, the study uncovers the economic and geopolitical motivations behind China’s BRI strategy. The findings reveal significant insights into the benefits and drawbacks of BRI financing, providing recommendations for overcoming challenges and leveraging future opportunities in Southeast Asian construction sectors.

While infrastructure provides necessary public services and is vital for the socio-economic development of a nation, public funds alone cannot finance all infrastructure needs in society, especially after the COVID-19 pandemic, where many countries are facing budget deficits. Although private financing schemes, such as public-private partnerships (PPPs) and land value capture, have been considered intensively, they have yet to produce adequate private capital flows to infrastructure projects due to a lack of incentives for private investors. Against the background, this paper proposes a new financing mechanism in which governments might divert some of the increased tax revenue from the spillover effects of newly constructed infrastructures to fund the private sector through grants or subsidies. The empirical work in Vietnam shows a significant increase in tax revenues after completing two expressways, supporting our idea about spillover effects, which includes small- and medium-sized enterprise (SME) development. This study’s results suggest that spillover effects can bring new opportunities for governments and multilateral development banks (MDBs) to implement infrastructure projects with greater private sector involvement in the region. It also proposes some financial schemes, such as land capture and financing for business startups, including SMEs, to enhance the spillover effects of infrastructure.

Increasingly, U.S. cities are focusing on transit-oriented development (TOD) policies to expand the stock of higher-density, mixed-use development near public transit stations within the context of a transit corridor and, in most cases, a regional metropolis. A TOD zone relies on a regulatory and institutional environment, public and private participation and investment, and development incentives to create vibrant, people-oriented communities and mobility options and to support business development. TODs provide local governments with more tax revenues due to increased property values (and, as applicable, income and sales tax revenues), but most planning for TODs ignores the non-transit infrastructure costs of increasing development density. This study focused on determining the water and sewer infrastructure costs for TOD zones along a rail line in southeast Florida. The finding was that millions of dollars in funds are needed to meet those water and sewer needs and that few are currently planned as a part of community capital improvement programs.

While there has been much discussion about the large infrastructure needs in Asia and the Pacific, less attention has been paid to public expenditure efficiency in infrastructure services delivery. New constructions are not the only solution, especially when governments have limited capital to invest. Globally, new infrastructure projects face delays and cost overruns, leading to an inefficient use of public resources. The root causes include the lack of transparency in project selection, the lack of project preparation, the silo approach by public entities in assessing feasibility studies, and the lack of public sector capacity to fully develop a bankable pipeline of projects. To tackle these issues, governments need a smarter investment approach and to do so, enhancing public service efficiency is very crucial. The paper suggests a “whole life cycle” (WLC) approach as the main strategic solution for the discussed issues and challenges. We expand the definition of WLC to include the entire life cycle of the infrastructure asset from need identification to its disposal. The stages comprise planning, preparation, procurement, design, construction, operation and maintenance, and disposal. This is because we believe any efficient or inefficient decision throughout such a wide life cycle influences the quality of public services. Hence, in this holistic approach, infrastructure life cycle consists of four phases: planning, preparation, procurement, and implementation. Governments could enhance public efficiency and thus improve access to finance throughout the WLC by several solutions. These are (i) preparing infrastructure master plan and pipelines and long-term budgeting during the planning phase; (ii) establishing framework and guidelines and improving governance during preparation phase; (iii) promoting standardization, transparency, open government, and contractual consistency during the procurement phase; and finally (iv) continued role of government and total asset management during the implementation phase. In addition to these phase-specific means, key WLC solutions include proper use of technology, capacity building, and private participation in general and public-private partnership (PPP) in particular.