Infrastructure 2007: A Global Perspective predictsinfrastructure will emerge as a new asset class for institutionalinvestors, such as pension funds, which are seeking stable growththat can keep up with inflation. Already in Europe, the reportsays, a secondary market is poised to develop in which early-ininvestment banks sell holdings to longer-term pension funds whohave gained confidence in the consistent track records of this newasset class.

The report leads off with the dismaying finding that the US'transportation infrastructure--airports, public transit, railwaysystems, roads and bridges--is an emerging crisis that willeventually erode cities' abilities to compete globally. This is dueto years of underinvestment by the government.

By contrast, countries in Europe, as well as China, Japan andIndia have been aggressively tapping the private sector and usingvarious permutations of public-private partnerships for funding,construction, operations and management of infrastructure.