Lack of Funds, Slow Approval Processes, Shifting Priorities; the Major Obstacles to Delivery of Better Infrastructure
The majority of public sector executives in the UK think that lack of funding and government effectiveness are the top challenges to delivering infrastructure projects, according to a survey commissioned by KPMG. The survey is the third in a series of global infrastructure surveys in the last 12 months from KPMG International, which commissioned the Economist Intelligence Unit (EIU) to conduct these surveys on their behalf.
The survey reveals that almost 70 percent of UK public sector officials think lack of funds is the largest obstacle to infrastructure development. And although governments globally have passed large stimulus packages, almost 60 percent of officials in the UK say the largest obstacle in actually spending the available stimulus money is the slow approval process.
Richard Threlfall, head of infrastructure and projects at KPMG comments:
"While stimulus spending is a great idea, this survey shows the frustration of the public sector in getting that money spent on the ground. We need to cut the red tape to commit more money more quickly and power the economy back into strong growth. Belts may be tight but the countries that invest in their infrastructure today will be the leaders of tomorrow."
Government ineffectiveness is one of the biggest concerns among public officials globally. 74 percent of UK public sector officials cite government ineffectiveness as one of the biggest barriers to delivering infrastructure projects, 76 percent of US officials and 82 percent of those in Asia think so too. Asked specifically about ways to improve infrastructure development, the solutions among public sector respondents ranged from increasing transparency in infrastructure project selection, to better training of public sector officials, depoliticizing the infrastructure public policy process and making greater use of public private partnerships.
Richard adds, "Better cooperation between the public and private sector is crucial in delivering infrastructure projects for the future. It is striking that the majority of UK public sector officials agree that government ineffectiveness is a major barrier to delivering infrastructure projects. There is a clear opportunity for whoever forms the next Government to address the structural weaknesses that impede project delivery, by taking out layers of decision making and aligning the incentives of different public bodies to co-operate to get things done."
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