Public infrastructure investment: a BRICS perspective for inclusive sustainable development

Abstract

The original aim of the paper on which this lecture is based was to discuss the role of public infrastructure investment for integrating Sustainable Development Goals (SDG) in the development programs of BRICS countries. From a micro-to-macro perspective is the provision of public infrastructure a key intermediate factor for ensuring that an individual's living standard, capabilities and human, socio-economic and political rights are macro-economically sustainable in the long-term? The MDGs emphasised human capital, infrastructure, and socio-economic and political human rights as integral to increasing an individual's living standards and human capabilities. The paper discussed a possible relationship between development finance and BRICS public infrastructure investment policy to address inclusive sustainable development and public infrastructure backlogs of deficits that militate against meeting SDG targets. The recent establishment of the BRICS New Development Bank and the accession of the RMB to international reserve currency status present China with an opportunity to bridge the long-term infrastructure investment financing gap faced by for developing countries for the provision of basic infrastructure services to address the SDG goals. The lecture first discusses the extent to which infrastructure investment may act as a catalyst for promoting SDGs. Secondly, I review the current trends in infrastructure investment as they relate to gross fixed capital formation (GFCF) among BRICS countries. Thirdly, I consider a possible theoretical framework for public investment to address basic public infrastructure service backlogs targeting SDGs in BRICS countries. Finally, I discuss the possible role of a BRICS development finance institution in financing public infrastructure investment, and conclude with some specific proposals