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| Fiscal Stimulus Package Survey 2009 |
| Surveys
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| The global financial crisis has led to most major countries announcing a stimulus package - a special fiscal package of spending and tax measures meant to increase economic activity (more formally, fiscal stimulus aims to boost economic activity during periods of economic weakness by increasing short-term aggregate demand). These packages generally include a significant percentage for infrastructure projects that require consulting and engineering services. FIDIC monitors the overall effect of this infrastructure spending on the demand for these services. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stimulus Packages: Infrastructure Component | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The demand for consulting engineering engineering services |
| Investment in infrastructure is equivalent to an increase
in Gross Fixed Capital Formation (GFCF). GFCF measures the value of
additions to fixed assets purchased by business, government and households
less disposals of fixed assets sold off or scrapped. So it is a measure of
the net new investment in fixed capital assets. Its aim is to measure the
value of net additions to fixed capital stock, but somewhat
confusingly, GFCF is called “gross” because it does not include the
depreciation of assets. FIDIC uses national estimates of GFCF to estimate the demand for consulting engineering services (see article PDF and FIDIC Annual Survey). Using the same methodolgy, the stimulus packages summarised above translate to an additional demand of some USD 20 billion in services. |
| What FIDIC Member Associations say |
| ACEC-Canada |
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The Association of Canadian
Engineering Companies (ACEC) says infrastructure
investment is a “proven policy tool” which generates
both short and long term economic stimulus, improves
safety and enhance quality of life. One ACEC recommendation is that governments receiving federal funds for projects be required to outsource infrastructure work to generate a true stimulus, despite the federal government’s reluctance to dictate procurement policies. “Clearly, provincial or municipal governments that divert federal infrastructure monies to their own in-house workforces will not be creating jobs,” says Jeff Morrison president of ACEC. They will not be spurring innovation in the economy, nor will they be creating economic growth - they will merely be subsidizing their own internal operations.” |
| ACEC-USA |
| The American Council of Engineering Companies has written a series of letters to the leaders of the US Congress calling upon Congress to include a sustantantial investment in infrstruture in planned stimulus pacages. See ACEC Resource Center. |
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| International Federation of Consulting Engineers Box 311 - CH-1215 Geneva 15 - Switzerland Tl +41-22-799 49 00 - Fx +41-22-799 49 01 - fidic@fidic.org - FIDIC.org |