In the past, projects across the region competed for resources. Today they are competing for investment as government officials morph from bureaucrats into salesman.

For the past three years, economic reforms have swept the region. Taxes have been introduced, subsidies reformed and government spending curtailed. With capital spending cut, governments have turned to the private sector to deliver projects, and as those schemes are starting to come through the concept and feasibility stages they are now seeking investment.

With hundreds of projects coming to the market, investors can afford to pick and choose, and this is kickstarting a regional competition for investment.

While competition may at first appear to be counterproductive, in the long term it will foster further economic reforms as governments seek to entice potential financiers to invest.

One of the key challenges will be governments’ ability to reform and transition from being active players in the market with state-owned and controlled entities into pure regulators that give the private sector space to flourish. Government officials are aware that this needs to be done, but admit that dismantling corporate bureaucracy that has been in place for decades can be slow going.

While some investors want more change, others are happy with the progress, especially in sectors that have a longer history of private sector participation – such as real estate – and are already making sizeable investments. The fate of these investments will be crucial to unlocking further funds in the future.

If successful, then other investors will follow and the region’s governments will achieve their goal of regulating private sector economies.

If they are not successful, then despite the efforts to reform, the levels of investment will disappoint and the region will be left competing for scraps.