By: ARUN S

Even as India is finding it difficult to meet its ambitious target of ensuring investments worth $1 trillion during the 12th Five-Year Plan (2012-17) in the infrastructure sector, the World Bank Group on Thursday launched a new Global Infrastructure Facility (GIF) to ensure that billions of dollars are channelised to develop world-class infrastructure in emerging markets like India and developing economies (EMDEs).

The World Bank Group said, through the GIF, it plans to work with the proposed Asian Infrastructure Investment Bank (AIIB), the New Development Bank (NDB) and Asian Development Bank (ADB) to boost investment in bankable infrastructure projects in the emerging and developing economies.

World Bank Group President Jim Yong Kim said the some of the world’s largest asset management and private equity firms, pension and insurance funds, and commercial banks will work as partners in the GIF.

The key focus of GIF would be on climate friendly investments as well as ventures to bolster trade.

This development comes close on the heels of the IMF Managing Director Christine Lagarde highlighting the need of the importance of greater public investment to build efficient infrastructure in all countries to inturn ensure higher growth and greater employment opportunities. She had also said that more investment in infrastructure is an obvious imperative in many countries where bottlenecks and obstacles to transportation and energy supply hamper development.

Jim also told mediapersons here that the World Bank will extend all its expertise in order to help AIIB, NDB and ADB. Australian Treasurer and Chair of the G20 Finance Track Joe Hockey said the launch of GIF complemented G20’s work in boosting infrastructure investment.

World Bank cautions on Ebola pandemic

Washington: The World Bank Group on Thursday warned that the regional financial impact of the spreading Ebola crisis in West Africa — which has infected over 8,033 people and claimed more than 3,879 lives so far — could reach $32.6 billion dollars by 2015-end if the epidemic is not quickly contained. It also cautioned that the crisis could have impact across the world.

World Bank Group President Jim Yong Kim, referring to the $46 billion-worth global economic impact of the previous SARS epidemic in 2002-03, said 80-90 per cent of the drop in investments is due to the fear factor and risk-aversion behaviour of investors following such epidemics and crises. ARUN S