Building back better is a term frequently used to underpin efforts to boost the global economic recovery and return society back to normal once the pandemic finally shows signs of being under control. Western governments are spearheading this effort, with their multi-trillion-dollar fiscal stimulus commitments, largely geared towards ‘green’ infrastructure initiatives. These efforts by the public purse to build nations out of the economic doldrums have strong echoes of Franklin D Roosevelt’s New Deal in the 1930s. Even the IMF has reversed its long-held advocacy of fiscal prudence to urge governments not to rush to reduce their liabilities, but remain stimulative.
Amid this spending splurge there will inevitably be opportunities for private capital. But how can the investment community participate?