The Finance Foundation
Reinventing capitalism for all
AUTHOR
Michel
Gabrysiak
President of the Finance Foundation

Christine Lagarde wants $trillion invested in infrastructures. And fast
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Investment in infrastructures is insufficient in today’s world.

Who says that? The director general of the IMF, Christine Lagarde.

According to her, and she is, no doubt right, such an inflow of real money into real projects would help diminish public debt.

The IMF believes that the world needs one trillion dollars to be invested very quickly. Every year.

Madame Lagarde’s analysis is that, the crisis has pushed dramatically down the amounts invested by state and public bodies. 

Public investment has gone down 25% during the crisis. 

It is time to rejuvenate the roads, and the trains, the streets, water, electricity. Everywhere signs of deterioration are to be seen. Today the world invests 2.7 trillion dollars per year. It should invest 3.7 

Such a vigorous amount will no doubt influence global growth.

Such an investment needs new debt. That means that countries which are up to their ears in debt may find it difficult.

We have to try to find a new equilibrium between public and private investment. And debt.

Debt for investment is good. Debt, just to pay the daily bread and butter, is not good at all.

 

Write to The Finance Foundation at info@finance-foundation.com
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