On Thursday (March 23), World Bank President David Malpass unveiled a new road map for private sector participation in project financing across emerging and developing economies, as annual financing needs reach US$2.4 trillion.
According to a new World Bank estimate, the massive yearly financing needs could address the effects of climate change, war, and pandemics, and private capital is "essential" for meeting those needs, according to Malpass.
Malpass resigned from the World Bank in February, and the lender expects to find a replacement by early May.
He added that the programme is built on three pillars, the first of which aims to improve capital flow by providing macro stability and transparency, as well as building data banks to aid decision making.
"The product of these analytics will focus on actions that countries need to take for a sound investment climate, competitive markets, and a balanced role of the State in the economy," said Malpass at an event hosted by the Center for Strategic and International Studies in Washington.
The road map then shifts to addressing liquidity issues and opportunities for State Owned Enterprises to attract private capital.
Finally, it intends to establish a market for investment-grade securities that will attract institutional investors.
"Our aspiration over time … is to see the creation of a massive, dynamic, investable asset class for infrastructure in developing countries that spans borders and sectors in order to diversify risk and achieve lower financing costs,” Malpass said.
"The initiative will boost sustainable development that is inclusive and environmentally friendly, reduces carbon, enhances energy access, alleviates poverty and achieves the required pace of global digitalisation."