Australian Prime Minister Tony Abbott Speaks During The Launch Of A Student Mobility Program
Australian Prime Minister Tony Abbott speaks during the launch of a student mobility program at a university in Mumbai September 4, 2014. Reuters

Australia is awaiting a big gain as the host of G 20 Summit being held on Nov. 15 to 16 in Brisbane. The proposed global infrastructure hub of G20 nations will be set up in Sydney and that is expected to open a new chapter in fast tracking infrastructure development in all the member states. The blue print of this hub was discussed In September this year, reports AFP.

Key Proposal

Throwing more light into the proposal, Prime Minister Tony Abbott told "The Australian" newspaper that the envisaged agency will not be another "international bureaucracy", but work like a clearing house for ideas on raising commercial funds for new public works, such as roads and railways. According to the Prime Minister, the hub will cut through red tape and close the "information gap" between investors and infrastructure projects in G20 states. This will spur economic growth by shifting gears from government-driven growth to private sector-led growth. "Ultimatelt its focus will be international thinking and an innovative approach to infrastructure development", the PM noted.

The infrastructure hub has been a key proposal of Australia as the Chair of the G20 and the hope is that it will contribute to the proposed 2 percent increase in combined growth in the next five years through reforms and infrastructure investment. Australia's proposal has drawn the support of the U.S, U. K and Japan. But countries such as India and France voiced skepticism about its wisdom as it could overlap with the role of World Bank. But Abbott makes a distinction between the two. The proposed hub would set up a four-year time limit to avoid the confusion of being a permanent institution. What is unique about the hub is that it is something the global economic group of G 20 has never attempted.

Boost For Private Investment

Functionally, the hub will give a push to private-sector investment in infrastructure projects as world over, governments are battling with falling revenue and bulging budget deficits hurting the public-sector funded projects. The Australian in its report also highlighted the enthusiasm of leading companies who are keen to fund the project and gain trans-national exposure in infra projects. Telstra chief executive David Thodey was upbeat and Wesfarmers managing director Richard Goyder said there would be strong private sector support to get it started. Mr Goyder said more Australian companies would like to contribute to the "project funding" and derive "expert personnel support" through the Global Infrastructure Hub.

The hub will be a key outcome of Brisbane Action Plan", where 900 other economic proposals will come up to direct the expansion of world economy by $2 trillion, in a major a departure from the current policies.