Insight Magazine: Global Infrastructure in a protectionist world

Global infrastructure in a protectionist world

kpmg.com/insightmagazine

#globalinfra

For a host of economic, social and

political reasons, governments at all

levels around the world are keenly

focused on infrastructure

© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client

services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra

However – over the past few years

in particular – the rules of the game

have changed



Two clear trends have emerged



Two clear trends have emerged1) Infrastructure is globalizing



Two clear trends have emerged1) Infrastructure is globalizing

2) Governments are becoming more protectionist



Yes, protectionism may create local jobs in the short term



But in the long term, it is more likely

that protectionism will do more to

degrade a market’s economic growth



Outcomes of protectionism:

Impede the flow of new ideas,

technology and capital across borders




Lead to increased costs and

even lower quality infrastructure




Strain national resources

and capabilities




Create massive political risk to

investors, damaging long-term

competitiveness of markets



It would be foolish to believe that we

could rid the world of protectionist

sentiment, particularly as the power

of social media grows



But governments must:

1. better educate the public about the actual

risks of foreign ownership

2. decide where to strike the balance between

political populism and economic benefit –

and transparently draw that line for everyone

to understand



Welcome to localization in

a new world of globalization



To learn more

[email protected]

kpmg.com/insightmagazine

#globalinfra

mailto:[email protected]

mailto:[email protected]

http://kpmg.com/insightmagazine

https://home.kpmg.com/xx/en/home/insights/2014/05/insight-magazine.html?cid=sldshr_soc_xx_vol9-acx_inf-nsght-mag&utm_medium=soc&utm_source=sldshr&utm_content=xx_vol9-acx&utm_campaign=inf-nsght-mag

http://twitter.com/KPMG

Education

Insight Magazine: Global Infrastructure in a protectionist world