The relationship between infrastructure and inclusive growth

Module topical coverage

• Evidence of inclusive growth resulting from infrastructure sectors
• Direct and indirect benefits, opportunities and trade-offs
• The infrastructure landscape, enabling environment and sector reform
• Trade, infrastructure and development

Introduction

Infrastructure is both a driver and enabler of economic development. While economic growth fuels demand for infrastructure services, the availability and quality of infrastructure, such as transport, energy, water, sanitation and digital networks, are essential for unlocking economic potential, fostering productivity and improving livelihoods. The true value of infrastructure lies not in the physical assets themselves, but in the services and related economic productivity they enable, for instance access to clean water, reliable electricity, shelter or mobility. It is through these services that infrastructure delivers social, economic and environmental benefits to society.

This module examines the critical role infrastructure plays across sectors in promoting climate resilience, supporting low-carbon development and expanding service delivery. It highlights the dual challenge of meeting infrastructure needs while ensuring equitable outcomes.

Delivering inclusive and impactful infrastructure requires navigating trade-offs, for instance between labour-intensive and mechanised construction methods, while overcoming systemic barriers such as unreliable energy or limited transport access. It is important to understand how infrastructure can create opportunities for those at the base of the economic pyramid. Opportunities need to be created by tools and legal reforms and shaped by initiatives such as the Public–Private Infrastructure Advisory Facility (PPIAF) and the Private Infrastructure Development Group (PIDG) to ensure infrastructure investments generate sustainable benefits and climate-compatible development pathways.

While infrastructure can significantly reduce poverty and improve access to jobs and services, its impact is not uniform. Outcomes vary across geographies, social groups and skill levels, and are highly dependent on the quality of investment design and implementation. This module equips practitioners with the insights and tools needed to maximise infrastructure’s contribution to inclusive economic growth.