Impact of Infrastructure Development on the Supply of Capital

Extracted 28JUN2011 from

The new roads, ports, railways, terminals, and other infrastructure that developing countries need will cost vast sums of money. A recent McKinsey Global Institute analysis finds that as a result, by 2030 the supply of capital will fall short of demand to the tune of $2.4 trillion—slowing global GDP growth by one percentage point a year. A similar gap could occur even if China and India cool off.

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