The Economy keynote by Dr Larry Summers

Tue, 05/24/2016 - 16:04

By RICS Digital

“We are underinvesting in energy efficiency” Dr Lawrence H Summers, former US Treasury Secretary, told professionals at the World Built Environment Forum that our sector needs to do more to make real estate assets work harder to stimulate sustainable growth.

Professionals are well-placed to boost market confidence, trust and transparency through professional standards, financial innovation and appropriate levels of regulation, provided they are able to take a longer term view.
“We are underinvesting in energy efficiency”. Dr Summers called for greater action on sustainability. With historically low interest rates expected to continue, and with historically high levels of savings rates combined with low rates of investment, investment in sustainable features was particularly good value and yet “We are underinvesting in energy efficiency”.

Moreover, governments were “missing the opportunity” of favourable conditions to invest in much-needed infrastructure renewal. A key reason for the shortfall in investment was political and investor doubts that infrastructure projects would be delivered to time and on budget, a key area where professionals could make a significant contribution.

Jeffrey Matsu, RICS Senior Economist takes an in-depth look at the economic issues arising from Dr Summers’ remarks and what they mean for professionals. Download the report now

About the World Built Environment Forum (WBEF)

The World Built Environment Forum demonstrates responsible leadership for the built environment and is an annual, global event which takes place on a different continent each year.

This forum creates and sets the standard for dialogue and collaboration among professionals, clients, policy makers and regulators with the aim of driving up standards so that our profession and our industry show responsible leadership in enabling sustainable growth.

Find out more about the WBEF, access videos from the event and get details of upcoming events

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Comments

Submitted by Rajasekaran Mur... on Sun, 02/12/2017 - 08:18

Dr Summers word is true that, “We are underinvesting in energy efficiency” in a sustainable way and necessary action. This speach is very interesting. Thanks to RICS ,Mr.Jim, Martin and Dr Larry Summers.

Submitted by Rohit Karve on Sat, 04/22/2017 - 08:09

Very well presented by Dr Summers the need of the hour is to invest wiselly in the new technologies for the masses. The world leaders to think on the same and to be implemented by the construction fraternity.

Submitted by Richard Brooke on Sat, 10/28/2017 - 19:27

Dr Summers' political forecasts were proved wrong in respect of the outcomes of the US Presidential election and Brexit but his economic arguments and linkages regerding the macro-economy of high savings, low interest rates, low investment in infrastricture, high asset values, populist resentment to elitist wealth and technology drivers, and a need to publicly and privately increase productive investment, were very powerful and well worth listening to and reflecting upon.