Infrastructure plays a crucial role in the global economy. The availability of transport, communication, electricity, safe water and sanitation, and other basic facilities has a tremendous impact on improving the quality of life and well-being. Infrastructure facilities and services are instrumental to efficient production, transport and trade that all spur economic growth, which in turn helps in reducing poverty. Recognising the essential role that long-term financing for investment plays in supporting strong, sustainable, balanced and inclusive growth, G20 Finance and Central Bank Deputies established a Study Group on Financing for Investment in 2013, which was transformed into the Infrastructure Investment Working Group (IIWG) in 2014 and then into the Infrastructure Working Group (IWG) at the end of 2017.
The OECD, drawing on its longstanding expertise and extensive work on “Institutional Investors and Long-Term Investment,” has been a key contributor to the G20 work on financing for investment and an active member of the IIWG and IWG. In 2013, upon G20 Leaders’ request, the OECD developed the G20/OECD High-Level Principles for Long-term Investment Financing by Institutional Investors. Following a call from Leaders, the OECD has continued its work on institutional investors through the G20/OECD Task Force on Institutional Investors and Long-Term Financing. More recent contributions include the G20/OECD Guidance Note on Diversification of Financial Instruments for Infrastructure and SMEs endorsed by G20 Finance Ministers and Central Banks Governors and Leaders in 2016.