Since last year, whether or not the disadvantage of Canadian Infrastructure Bank overweighs its advantage has become a controversial issue. I personally believe that the benefit of the overall impact of the new Canadian Infrastructure Bank outweighs its drawbacks. First of all, the bank provides a great opportunity for private funds to get involved in public infrastructure. It can help the government to reduce its financial pressure so that government will not undertake all of the responsibility of funding money for public infrastructure. On the other hand, private investors are able to gain profits from investing money in the bank. Both government and private sector are able to gain benefit from the bank.
A similar resource that relates to this topic is Public-Private Partnerships(PPP), which also indicates the benefit of the Canadian Infrastructure Bank. The major idea of PPP is: ”arrangements where the private sector supplies infrastructure assets and services that traditionally have been provided by the government.”
What’s more? As the study refers to, boosting infrastructure productivity can stimulate the economic growth. As a power plant, infrastructure projects can provide plenty of job opportunities. The unemployment rate will decrease. Then workers will purchase more money into the market, creating a health cycle. In order to double the Canadian economy projected growth, implementing the new Canadian Infrastructure Bank is an effective way to encourage the development of infrastructure and promote the economic growth.
Some people argued that to let government participate more in the bank is not necessarily a positive thing. In my opinion, since Canadian economy is a mixed market economy, the government plays an important role to adjust the market and take Canadian economy to a better stage. John Maynard Keynes, a famous British economist, mentioned in his theory, “Economically and socially successful economies have significant contributions from both the government and the private sectors”, which well supports my argument.
References:
https://beta.theglobeandmail.com/news/politics/bill-raises-doubts-about-independence-of-infrastructure-bank/article34694708/?ref=http://www.theglobeandmail.com&
https://canadiandimension.com/articles/view/the-canada-infrastructure-bank-theft-by-deception
https://pcdnetwork.org/event/training-course-on-public-private-partnership-for-development-6/
https://www.imf.org/external/np/seminars/eng/2006/rppia/pdf/hemmin.pdf
https://www.quora.com/How-does-infrastructure-spending-stimulate-economic-growth-and-why-is-China’s-investment-in-infrastructure-projects-considered-ill-considered-or-bad