Development Cooperation

Development Cooperation: infrastructure enabling economic growth

To reduce poverty developing countries need first and foremost sustained economic growth, driven by the private sector. Building capable states, promoting the private sector, developing skills and investing in infrastructure are key elements to that end. Especially infrastructure plays an pivotal role in realizing the comparative advantages of developing states. Infrastructure is an essential precondition for growth and trade. The costs borne by the private sector for an inadequate infrastructure are enormous and the lack of cross-border infrastructure is frustrating trade.

 

Dutch international operating contractors have contributed in the past decades to realizing improvements in basic infrastructure in projects ranging from waste water and water treatment plants, solid waste and sanitation facilities to the construction and maintenance of hospitals, roads, airports, ports and waterways. And they are able today and will continue to make a significant contribution to the United Nations objective of reducing poverty by half around the world by the year 2015. However, the future needs for public and private funding for infrastructure are enormous. The challenge is to mobilize more resources – including concessional finance from donor countries – for improvements in infrastructure. It means also that developing countries should work hard on enhancing their business climate: if they want to attract private investors, they must offer an attracting business environment.