The CGD Podcast: Reviving the G20 Infrastructure Agenda – Scott Morris (March 11, 2014)

Episode Overview

This episode of the Global Prosperity Wonkcast, hosted by Lawrence MacDonald at the Center for Global Development, features Scott Morris, Senior Associate at CGD and former Deputy Assistant Secretary at the U.S. Treasury. The conversation centers around the G20’s progress—and struggles—with mobilizing finance for infrastructure in developing countries. Drawing from recommendations by a recent study group led by Morris, the episode examines what the G20 can do to make a tangible impact on global infrastructure investment, focusing on actionable proposals rather than more reports or superficial commitments.

Key Discussion Points & Insights

1. Why Infrastructure Is Central to Development

[01:02 – 02:55]

• Scott Morris emphasizes the enduring priority of infrastructure for economic development, both in multilateral development efforts and among emerging market countries.

• Infrastructure spans more than just roads and bridges; it includes energy, water, household access, and the industrial backbone for job creation and growth.

  “From a development perspective, ...infrastructure needs rank, if not at the top of the list, high on the list of what countries really need to take off developmentally.”
  – Scott Morris [01:02]

• The renewed focus on infrastructure is driven largely by developing countries themselves—reflecting their needs and assertive voices in global development dialogue.

2. The G20’s Unique Role and Limitations

[04:25 – 07:40]

• G20 as an agenda-setter, not an implementer: Its primary impact on infrastructure comes via influencing multilateral development banks (MDBs) rather than direct project finance.

• The host rotation, lack of secretariat, and inability to pledge financial resources mean the G20 must focus on steering agencies like the World Bank and IMF through unified policy direction.

  “...what value [can the G20] provide the global community?... On infrastructure, you know, what is more concrete than infrastructure? And yet to date, it’s been a little bit of a struggle to point to real measurable outcomes…”
  – Scott Morris [04:51]

• The group acts as “shadow governance” for MDBs, with enough shareholder power to set their agendas through board representatives.

3. How the G20 Differs from the G7/G8

[09:08 – 09:21]

• G7 and G8 meetings produced big headline funding pledges, but the G20 deliberately avoids such commitments, focusing instead on non-financial levers like policy direction and consensus-building.

• The diversity of G20 members (ranging from the US and China to Brazil and Russia) gives it greater ambition and reach but less nimbleness.

  “The G20 very deliberately is not in that business [of pledging money]… they can be more ambitious than simply ponying up 10 or 20 million dollars here and there.”
  – Scott Morris [09:21]

4. Three Core Recommendations for the G20 Infrastructure Agenda

a. A Universal 'Doing Business'-Style Assessment for Infrastructure

[11:24 – 15:11]

• Proposal: An annual or biennial global “knowledge product”/report rating countries on barriers to infrastructure investment, modeled on the World Bank’s Doing Business survey—but focused on infrastructure markets.

• Its value lies in being a public good: fostering transparency, supporting reform through competition, and attracting investor interest.

  “What we’re calling for here is a tool in the toolkit... fashioned in a way that it has market value, frankly. So if you look at, for example, the Doing Business report... this is not just any other report.”
  – Scott Morris [11:24]

• Why not a private sector product? Only the G20 has the visibility, convening power, and incentives to create a free, universal resource—consultancies can’t match the scale or public good value.

  “I think it’s hard to have a truly global product that has the visibility that something like doing business has had. And this comes back to the value of the G20...”
  – Scott Morris [14:31]

b. Harnessing Pension Funds for Infrastructure Investment

[15:14 – 18:54]

• There’s a glaring mismatch: trillions of pension fund dollars exist, but only about 1% is invested in infrastructure ([16:06]).

• The G20 should act as a sustained convening platform for pension fund trustees, CEOs, CIOs, infrastructure managers, and crucially, regulators.

• The aim: To identify and overcome regulatory and market obstacles to greater pension fund investment.

  “What we do know is that there has not been enough discussion within the community about the ways in which they can get infrastructure investment done consistent with their investment needs. ...So what we’re proposing here is that the G20 provide the convening forum, which is one of the other things that the G20 can actually do very effectively.”
  – Scott Morris [16:06]

• Regulators’ involvement is key: Because pension funds are heavily regulated, only by including regulators can real barriers be addressed.

c. Sustained Support for Multilateral Development Banks (MDBs)

[18:54 – 21:22]

• Instead of chasing endlessly after innovative financing mechanisms, the focus should return to the basic: ensure robust core capital for MDBs to enable them to deliver on infrastructure.

• Past capital increases (in 2010) were spearheaded by the G20, showing its effectiveness at rallying shareholder support.

  “So much of the infrastructure agenda for the MDBS these days is about chasing new financing mechanisms... And what we’re saying here is don’t overlook your core financing. You are banks, you have capital. ...That is a tried and tested method.”
  – Scott Morris [19:51]

5. The G20 Troika – Ensuring Continuity

[21:22 – 23:30]

• The G20 Troika—comprised of the current, previous, and incoming presidency (in 2014: Australia, Russia, and Turkey)—is the primary tool for continuity in an otherwise structureless group.

  “It’s a way to ensure continuity in the agenda... those three work together throughout the year with the current year president in the lead. ...It certainly, I think, if nothing else, it has ensured some degree of consistency from year to year...”
  – Scott Morris [22:09]

Notable Quotes & Memorable Moments

• “It has been a little bit of a struggle to point to real measurable outcomes that has had an impact on the ground in these countries.”
  — Scott Morris [04:51] (on G20’s infrastructure progress)
• “You are banks, you have capital. The capital comes from your shareholders. ...we’re calling on the G20 to take a serious look at the capital needs of these institutions.”
  — Scott Morris [19:51] (on MDB financing)
• “There’s a public good here. That’s right.”
  — Scott Morris [15:11] (on the value of a publicly available infrastructure report)
• “The G20 can actually bring actors together. ...provide opportunities for them to come together and figure out...how do we make it happen?”
  — Scott Morris [16:06] (on pension funds’ role)

Timestamps for Key Segments

• 00:16 – 02:55: Introduction & why infrastructure matters for development
• 04:25 – 07:40: G20’s unique role, limitations, and influence over MDBs
• 09:08 – 09:21: Why the G20 does not pledge money like the G7/G8
• 11:24 – 15:11: Recommendation 1 – Global infrastructure investment report
• 15:14 – 18:54: Recommendation 2 – Mobilizing pension fund investment
• 18:54 – 21:22: Recommendation 3 – Core capital support for MDBs
• 21:22 – 23:30: The G20 Troika and ensuring agenda continuity

Episode Tone & Style

The discussion is forthright yet diplomatic, rooted in policy realism and the practical limitations of international institutions. There’s a mix of insider knowledge and accessible explanation, with a tone of “pragmatic optimism”—not shying away from past disappointments but laying out concrete, actionable steps for improvement.

Summary: Why This Conversation Matters

By spotlighting the concrete ways the G20 can move its infrastructure agenda beyond rhetorical or superficial progress—through impactful information products, targeted convening power, and robust support for MDBs—Scott Morris offers a pragmatic blueprint. For listeners interested in global development, finance, and policy, this episode demystifies the G20’s real-world impact and highlights where genuine change is possible—if political will aligns with practical action.