The upcoming year will be one of uncertainty, continued volatility and. most importantly, one of transition as the U.S. moves from a staunchly conservative to more liberal administration. Current economic conditions will modify some policy tendencies while accentuating others. Infrastructure stimulus programs of some size will be seen in the U.S. and China, although U.S. stimulus efforts may have a more muted effect as a result of reduced state level spending and increased barriers to expansion of the private-sector role in infrastructure spending.
In the U.S., investments under the stimulus program will likely benefit hurricane-ravaged areas of the Gulf Coast, aiding ports in that region in the medium term; urban rail transit systems as part of a policy of improved mobility and access to jobs; and road and rail congestion choke-point relief, aiding people and goods movement. Improvements to the air traffic control system are also likely. Concerns will center on the possible rise of protectionist tendencies as the nation deals with economic stimulus.
In China, infrastructure investments will attempt to provide job growth to offset manufacturing losses, with an emphasis on significant improvements in the national rail system. A key goal will be enhancing the attractiveness of the West to aid in the narrowing of economic disparity with East Coast cities.
New infrastructure program delivery strategies will be required to produce the desired stimulus effects and may collide with traditional government programmatic approaches.