Infrastructure Linkage to Economy, Essay Example

Does infrastructure investment always lead to productivity increases? Which periods of strong investment/underinvestment can be given as examples of productivity increases and growth of the economy, and which point to the negative effects of underinvestment in infrastructure on economic growth?

Infrastructure investment is one vital part of a nation’s economy. The decision over which infrastructure to invest in is one vital part of the process of determining the path of progress that a nation takes into account. However, not every infrastructure investment proves to be helpful to a nation; especially if these structures are not able to serve public values fully. For instance, a wrongly placed walk-through bridge may be more of a nuisance than a structure of service to the people needing it for better walking route.

Under which scenarios does the investment in infrastructure lead to definite positive impacts on productivity and the economy? Are there scenarios under which the impacts on productivity are almost non-existent, and where capital resources are better utilized in other direct factors of production in sectors like agriculture, manufacturing, etc.? Explain with examples.

Transportation and mobility investments are most often than not considered to be most useful. It could be understood that because of such point of improvements coming from such investment that people are able to go places faster [hence, increasing their productivity accordingly].  It could be understood that somehow, not-properly defined decisions on which infrastructures to work on and which ones they ought to put up or be put aside for the mean time causes much more problems than ease to the economy. This is specifically fatal to the economy of third world countries that are hanging by a controlled amount of Federal Reserve supposedly dedicated to such points of progress. When these investments are not properly handled, it is most often than not that the projects are started and end up stranded in the end and are not used fully for public service

Explain the importance of proper allocation of infrastructure investment across sectors, such as power, communications, water, etc. What would be in your view a way to optimize investments across infrastructure sectors? How does this issue relate to the importance of asset management and monitoring the performance of infrastructure?

Before any infrastructure investment is established, administrators need to give attention to which ones are actually generating the proper function and which ones are practically generating profit [depending on the designed function of structure]. Administrators need to make sure that their monetary [and other] asset management receive proper attention especially in putting each element into good and proper use specifically for the sake of the public and the national economy as well.

Describe the role of infrastructure in economic recovery (periods of low or negative growth and high unemployment). What are the elements contributing to growth in the economy, both direct and indirect? Describe the notion of counter-cyclicality of infrastructure investment.

Establishment of infrastructure for the public requires manpower which alleviates the situation of unemployment. Meanwhile, those investments that were halted for some time could be recovered thus keeping good control on how they manage the development of the economy in a gradual process. This is noted as the counter-cyclicality of infrastructure investment [especially in preempting how past projects could be further defined especially for the sake of rebuilding an economy for the sake of improving the lives of the people existing in a community.

Describe the relationship between infrastructure investment and trade. Given the current outlook (recent paper on ARRA) on energy investments, and supply chain infrastructure, explain how an underinvestment in some “new” sectors of infrastructure might erode future competitiveness for some of the leading economies? Give examples where infrastructure investments are related to future consumed “products” or services.

The more the infrastructure investments are established, the more effective the exchange of values would be especially for those operating in the commercial industries. The stronger and more functional these infrastructures are the more effective they would be in improving the operations of the industries where they are used the most; thus improves trade between organizations and between nations accordingly [due to the improved system of production, transport and distribution accordingly].

Optimal Infrastructure Investment Strategies for Developing v/s Developed Countries: Small case Study Select a country (or region/ province) of your choice, developing or developed, real or hypothetical. Describe its stage of development, its human capital, its opportunity space, and economic growth/development strategy. Develop a hierarchy of infrastructure investment (can be described in a top down tree, or a bulleted indented list), pointing out the proper sequencing and prioritization of infrastructure investments in support of its growth strategy.

The Philippines, a noted third world country, is most often than not criticized for the improper management of the assets that the nation owns. Relatively, the faulty planning of most of its urban areas has been causing massive problems to the country’s economy for many years accordingly. At present, traffic in most major roads in the country is one problem that hinders the nation from the supposed progress it hopes to engage in. In relation to this, it would be best to create a positive sense of development in the country through:

• Improving the zoning of the major areas in the urbanized locations in the country.
• Developing or expanding existing primary transport routes
• Improving the ravel route especially for those that are dedicated to major national operations
• Reestablish traffic policies that would be strictly implemented especially in trade routes within the country

These procedure hopes to create a difference on how transportation operations are viewed in the country, thus giving it an attention that strengthens its capacity to provide what the nation needs for the sake of progress.

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