Building on East Asia's infrastructure foundations

To derive greater benefits from private infrastructure, East Asian governments need to disengage from direct or contingent financing of projects. A transparent regulatory environment that addresses social concerns is not only good public policy but is likely to send strong signals of government commitment to privatization, which, in turn, should be conducive to stable long-term flows of investment. The many successes of the East Asian countries are due to their ability to change course when faced with new challenges. That ability will be tested severely, paradoxically, because of East Asia's very achievements in installing substantial delivery mechanisms. To reorient their largely successful systems, countries will need both political capital and skilled administrations. The evidence from the past is that East Asia can rise to the challenge.