insight magazine: global infrastructure in a protectionist world
TRANSCRIPT
For a host of economic, social and
political reasons, governments at all
levels around the world are keenly
focused on infrastructure
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
However – over the past few years
in particular – the rules of the game
have changed
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Two clear trends have emerged
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Two clear trends have emerged1) Infrastructure is globalizing
© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Two clear trends have emerged1) Infrastructure is globalizing
2) Governments are becoming more protectionist
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Yes, protectionism may create local jobs in the short term
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
But in the long term, it is more likely
that protectionism will do more to
degrade a market’s economic growth
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Outcomes of protectionism:
Impede the flow of new ideas,
technology and capital across borders
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Outcomes of protectionism:
Lead to increased costs and
even lower quality infrastructure
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Outcomes of protectionism:
Strain national resources
and capabilities
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Outcomes of protectionism:
Create massive political risk to
investors, damaging long-term
competitiveness of markets
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
It would be foolish to believe that we
could rid the world of protectionist
sentiment, particularly as the power
of social media grows
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
But governments must:
1. better educate the public about the actual
risks of foreign ownership
2. decide where to strike the balance between
political populism and economic benefit –
and transparently draw that line for everyone
to understand
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
Welcome to localization in
a new world of globalization
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.kpmg.com/insightmagazine | #globalinfra
To learn more
kpmg.com/insightmagazine
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