 in the 19th and 20th centuries does demonstrate that investors appear to be an inveterately optimistic breed. This situation creates opportunities for companies capable of tapping into these capital flows to create and invest in infrastructure and services in the more attractive and strategically targeted developing countries. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 © OECD 2006 5. THE IMPACTS OF CHANGE ON THE LONG-TERM FUTURE DEMAND FOR WATER SECTOR INFRASTRUCTURE These may well offer better prospects of returns than the developed OECD countries with their tighter sets of controls, regulations and expertise. It is likely though that the majority of TNC/MNCs specialising in the utilities sector will continue to expand their activities across a mix of countries as a way of spreading risk and exposure. The growing disparity between tax income and the demand for public services will severely challenge the ability of governments to finance infrastructure out of public funds, and will add to the pressure for greater involvement of the private sector. Thus there will likely be increasing participation by the private sector in the provision, financing, operation and maintenance of water services. In those developing countries with weak governance and oversight capabilities it is likely that TNC/MNC will act increasingly independently as a way of offsetting risk, while in rapidly developing countries the relationships will become increasingly aligned to the models adopted in the developed and OECD-centred countries. Demography Population growth and urbanisation While the world growth in population will continue, that of the developed countries and especially in the OECD, where currently growth rates are around 0.5%, may decline after 2030. The age composition will also change; people will survive longer as health and living conditions continue to improve, with the median age increasing from approximately 38 to 45 by 2030. The implication is that a greater percentage of 