BlackRock Inc.’s Larry Fink is urging the United States to launch a major privatization of critical national infrastructure such as airports, in order to harness private capital for a sweeping revamp.
Fink, in his annual letter to BlackRock shareholders, explains that federal spending cannot fulfill the country’s investment needs.
“Substantial expertise must be dedicated to bring projects to market in a format appropriate for institutional investment,” Fink says.
“These projects must deliver competitive returns and that will often require efficiencies that can only be achieved through private ownership,” Fink said.
He cites the example of American airports which, in contrast to those in the UK, Australia and other countries, are almost all publicly owned, the Financial Times explained.
“Policymakers, workers and unions must work together to find a model that will allow private enterprise to generate the long-term returns necessary to attract capital and build a more prosperous future,” he says.