section_path: In the developing world/Sources of funding for infrastructure
section_name: Sources of funding for infrastructure
paragraph_text: Sources of funding for infrastructure
  
  The source of financing for infrastructure varies significantly across sectors. Some sectors are dominated by government spending, others by overseas development aid (ODA), and yet others by private investors. In California, infrastructure financing districts are established by local governments to pay for physical facilities and services within a specified area by using property tax increases. In order to facilitate investment of the private sector in developing countries' infrastructure markets, it is necessary to design risk-allocation mechanisms more carefully, given the higher risks of their markets.
  
  The spending money that comes from the government is less than it used to be. From the 1930s to 2019, the United States went from spending 4.2% of GDP to 2.5% of GDP on infrastructure. These under investments have accrued, in fact, according to the 2017 ASCE Infrastructure Report Card, from 2016 to 2025, infrastructure will be underinvested by $2 trillion. Compared to the global GDP percentages, The United States is tied for second-to-last place, with an average percentage of 2.4%. This means that the government spends less money on repairing old infrastructure and or on infrastructure as a whole.
  
  In Sub-Saharan Africa, governments spend around US$9.4 billion out of a total of US$24.9 billion. In irrigation, governments represent almost all spending. In transport and energy a majority of investment is government spending. In ICT and water supply and sanitation, the private sector represents the majority of capital expenditure. Overall, between them aid, the private sector, and non- OECD financiers exceed government spending. The private sector spending alone equals state capital expenditure, though the majority is focused on ICT infrastructure investments. External financing increased in the 2000s (decade) and in Africa alone external infrastructure investments increased from US$7 billion in 2002 to US$27 billion in 2009. China, in particular, has emerged as an important investor.