Policy dimensions of development and financing of water infrastructure: The cases of China and India

• Infrastructure deficit is one of the most pressing challenges all over the world.
• Spending has been the highest in emerging economies, mainly in China and India.
• In China, infrastructure has played an important role in its rapid development.
• Investment on water infrastructure has not addressed efficiency over the long term.
• Rapid economic growth is outpacing the ability of the countries to control pollution.

The past decades have seen planning and implementation of built infrastructure in all over the developed and developing world growing in large scales. This has been influenced by economic and population growths, urbanization and industrialization, which in turn have put increasing stress in provision of services. The paper reviews the policy dimensions of water infrastructure development and financing in the two largest economies at present, China and India, including planning, implementation and decision-making processes. Findings indicate that main challenges for infrastructure development have been limited sources of financing, but also policies and their implementation. The high levels of investment in water infrastructure in the two countries have been impressive, mainly in China. However, they still have not necessarily addressed efficiency over the long term, supported more inclusive and higher economic growth or improve social and environmental conditions in all cases.