Publication

This paper argues that regional public goods in developing countries are under-funded despite their potentially high rates of return compared to traditional country-focused investments. The author stresses that regional public goods only receive about 2.0 to 3.5 percent out of total official development assistance annually. The paper also illustrates that the rate of return on regional investments is likely to be high, especially in Africa, where investments in regional infrastructure and institutional integration would reduce the high costs imposed by the region’s many small economies and many borders.