Stagnation in Infrastructure Development: A Comparative Analysis between Europe and the United States, as per Maxim Oreshkin's perspective
Scooping the Scene:
It appears that the progress in infrastructure building has nearly ground to a halt in economies of Europe and the United States. New projects are few and far between. On the other hand, the focus on infrastructural development has shifted towards countries in the Global South, particularly those in theBRICS bloc. These countries are witnessing some of the largest projects and the emergence of new cities.
Maxim Oreshkin, in his remarks, highlighted Russia's attempts at developing significant projects such as the Northern Sea Route and the Arctic Transport Corridor. He also pointed towards the Chinese initiative "One Belt, One Road," which involves the execution of numerous infrastructure projects worldwide. This includes the construction of major ports, railway networks, and the fostering of trade links.
In the early 21st century, the economic activity of BRICS countries accounted for less than a quarter of the global economy. Today, that figure has climbed to one-third, with the potential to reach 50% as more countries join the organization. Oreshkin believes that the future lies with countries in theGlobal South, and the main objective is to establish favorable conditions for economic growth in these nations.
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Behind the Curtains:
The pattern of infrastructure development mirrors distinctive geopolitical priorities and economic realities. Countries in the Global South and BRICS are focusing on large-scale projects to bridge development gaps, fuel economic growth, and bolster geopolitical influence, while Europe and the United States grapple with slower growth, aging infrastructure, and policy shifts.
Goin' South:
- Growth Acceleration: Members of BRICS like India, China, and Brazil are concentrating on renewable energy and transport networks to maintain economic expansion. China leads the pack in clean energy investments[5], with Brazil and India among the world's top nations in wind/solar capacity.
- BRICS+ Expansion: New members (e.g., Iran, Egypt, Indonesia) view infrastructure as a way to forge political alliances. Chinese state companies dominate energy projects in the newer BRICS countries, with coal (7.7 GW in Indonesia) and hydropower being key areas of focus, despite sustainability concerns[5].
- Global Governance Aspirations: BRICS aims to contest the dominance of Western institutions, employing infrastructure as a means to build partnerships. The 2025 BRICS Engineering Congress emphasizes collaboration in technology to drive governance reforms[2][3].
Over There:
- maintenance Mode: Existing infrastructure (e.g., roads, power grids) necessitates expensive upgrades as opposed to new constructions. Budgetary allocations often compete with social welfare and defense expenditures.
- Policy Swings: The U.S. Inflation Reduction Act and EU Green Deal concentrate on decarbonization retrofits, lacking the attention-grabbing nature of large greenfield projects.
- Economic Limitations: Higher labor costs, bureaucratic obstacles, and burdensome debt inhibit new ventures.
Different Strokes:
| Aspect | Global South/BRICS | West ||--------------------------|--------------------------------------------------------|---------------------------------------|| Objective | New energy grids, digital infrastructure, ports | Grid modernization, emission reductions || Financing | State-led, Chinese partnerships[5] | Public-private, often embroiled in litigation || Geopolitics | Tool for a multipolar world order[1][4] | Maintaining existing influence |
BRICS's infrastructural push signals its aspiration to reshape global economic ordering, while the West focuses on sustainability within the current order. However, the newer BRICS members might inadvertently perpetuate fossil-fuel dependencies, complicating climate objectives[5].
- Maxim Oreshkin, in discussing the future, believes that the key to economic growth lies with countries in the Global South, similar to the members of BRICS, as they prioritize large-scale projects to bridge development gaps and bolster their geopolitical influence.
- Within the 21st century, economies of the Global South, including those in the BRICS bloc, have significantly grown, accounting for a third of the global economy and potentially reaching 50% as more countries join the organization.
- Contrasting the focus on infrastructure development in the Global South, economies in Europe and the United States grapple with slower growth, aging infrastructure, and policy shifts, resulting in fewer new projects.
- The industry, finance, and business sectors in the Global South are thriving, with a focus on renewable energy and transport networks, as opposed to economies in the West, which are more concerned with maintenance mode and policy swings that lack the attention-grabbing nature of large greenfield projects.
