Thursday August 2 2018
The G20’s plan to develop an ‘infrastructure asset class’ to encourage private investment in developing countries is fundamentally flawed and must be shelved.
This is the message in a new report published by the European Network on Debt and Development (Eurodad) ahead of the Civil20 (C20) summit in Argentina next week (6-7 August).
The report spells out three reasons why the G20’s scheme to turn projects like roads, schools and hospitals into tradeable assets that can be bought and sold on international markets like stocks and shares is a mistake.
Report author Maria Jose Romero, Policy and Advocacy Manager at Eurodad, said: “If the G20 is serious about increasing infrastructure for development it needs to stop putting private finance first and instead focus on improving and delivering publicly financed infrastructure. One thing is for sure, creating an ‘asset class’ is not the way to get infrastructure built in those developing countries that need it most.”
The report also states that the priorities of global leaders should be ending tax dodging, which costs developing countries hundreds of billions of dollars a year; meeting their commitments on aid; and developing an international debt restructuring forum to help poor countries in growing sovereign debt distress.
To read more access the Eurodad report here. Maria Jose Romero will also present the report at the C20 summit in Buenos Aires.
Julia Ravenscroft, Communications Manager at Eurodad, email@example.com or +32 2 893 0854.
Natalia Mielech: firstname.lastname@example.org.
Notes to editors:
Eurodad (the European Network on Debt and Development) is a network of 47 civil society organisations (CSOs) from 20 European countries, which works for transformative yet specific changes to global and European policies, institutions, rules and structures to ensure a democratically controlled, environmentally sustainable financial and economic system that works to eradicate poverty and ensure human rights for all.