The United States should privatize critical infrastructure, according to Larry Fink, head of BlackRock.
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,” said Fink. “These projects must deliver competitive returns and that will often require efficiencies that can only be achieved through private ownership,” Fink said.
“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 added.
He cited the example of U.S. airports, which, in contrast to those in the United Kingdom, Australia and other countries, are almost all publicly owned.
His comments come as the Trump administration considers how to implement a $1 trillion infrastructure investment plan.