on investment, strong externalities and reduced economic leakages (Section 3.1). These strong externalities to ICT infrastructure suggest that the social returns on investment in ICTs are likely to exceed the private returns significantly, implying that private sector activity alone is unlikely to generate socially optimal levels of investment. On this basis, many OECD countries have included ICT and broadband investments in their stimulus plans, with new state financing plans for national broadband infrastructure. After over two decades of growing private sector participation in telecommunication infrastructure, government is back and there are signs of growing state involvement in the financing of network and infrastructure roll-out Although economists still debate appropriate measures to combat the recession (Insight 2), investments in ICT and broadband networks have a major role to play in any stimulus plan, as they can be ‘shovel-ready’ investments that promise stronger marginal returns on supply and greater productivity gains than other forms of infrastructure (such as transport infrastructure, for example). They represent a long-term investment in national infrastructure and skills base. Further, experience to date suggests that although long-term in a number of countries. To date, broadband stimulus plans have focused mainly on financing – both in the huge investments announced (but not yet fully disbursed in many cases), as well as in the credit lines and open investment models that some governments are exploring to fund ICT network deployment. This emphasis on financing raises several concerns - first and foremost, there is the risk that governments may crowd out private sector investment (Insight 8). However, this may be less of a danger during a recession and credit crunch, when private sector investment is likely to be severely constrained in any event. Several commentators have emphasized that stimulus funding should be temporary and targeted, to minimize crowding out. large-scale public infrastructure investments take longer to plan and execute, infrastructure investments are likely to generate more robust and durable economic growth than other types of stimulus measures (such as tax rebates). To be most effective, leading economists have suggested that stimulus measures should be timely, targeted and temporary. 10 Confronting the Crisis: ICT Stimulus Plans for Economic Growth