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he Nexus Between
Infrastructure and Environment
From the Evaluation Cooperation Group of the
International Financial Institutions
Contents
v Acknowledgments
vii Executive Summary
1 Chapter 1 The Infrastructure-Environment Nexus and the Future of Development
3 Chapter 2 Infrastructure, Growth, and Poverty Reduction
5 Chapter 3 Environment and Development
11 Chapter 4 The Nexus at the Project Level
15 Chapter 5 Sectoral and National Policies
25 Chapter 6 Conclusions and Follow-Up
27 Bibliography
Executive Summary
Infrastructure plays a crucial role in the drive for reach four to eight percent of GDP for some
achieving development by providing energy, developing countries, with most of the effects
transportation, and water. There have been ups falling on the poor.
and downs in the degree of emphasis placed on
infrastructure, but infrastructure has remained The Evaluation Coordination Group (ECG)
the largest component of the public investment recognizes the importance of this linkage, which
programs in developing countries—two to six we call the infrastructure-environment nexus. It
percent of gross domestic product (GDP). Nearly represents a large and growing challenge for the
half of the international financial institutions’ countries and the international financial institu-
project lending to developing countries goes to tions (IFIs) in their development goals. Meeting
infrastructure. Going forward, the Organisation the Millennium Development Goals depends on
for Economic Co-operation and Development the provision of adequate infrastructure, such as
(OECD) estimates that developing countries providing clean wa
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