EIB Projects

It used to be infrastructure, roads, water treatment, electric power generation. Nowaydays, it's more and more so-called global loans, meaning funds lent to banks to pass on to private firms.

Is that really the role of the European Investment Bank ? What is the nature of public aid to economic development ? Is the private sector really helped by a slightly more advantageous loan here, or some risk capital there ? Is private sector not dependent on the regulatory environment, or rather, the absence of excessive interference by the state ? Have not many studies shown that infrastructure cannot be profitably financed purely from private sources ? That the absence of of transport links, wastewater treatment, pollution abatement measures leads to lopsided development ?

More questions than answers. But evidence shows: a dearth of public infrastructure is an economic dead-end. And which institution, if not the EIB, the world largest development bank, is best equipped to tackle this gigantic job in today's world of 10 billion people ?

Conclusion: back to the roots ! Rethink the "private sctor only" approach ! Don't make life too easy by just pushing money to the private sector!