Role Of Infrastructure In Economic Development

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2.1. Role of Infrastructure in development Infrastructure, in general, defines as a facility through which goods and services are provided to the public. Their provisions do not produce goods and services directly but provide inputs for all other socio-economic activities. Infrastructure is the basic facilities and capital equipment needed for the functioning of a country or area. Infrastructure is referred collectively to the roads, bridges, rail lines, and similar public works that are required for an industrial economy, or a portion of it, to function. The term infrastructure originated during the World War II as a military term to mean underlying structures in the early days of Marshall Plan, as preferable to Social Overhead Capital,…show more content…
Sufficient infrastructure is required for the modernization and commercialization of agriculture and the achievement of income surpluses for capital accumulation. Infrastructure provides a basis for the expansion of local manufacturing industries help in enlarging markets for the outputs of these industries. Many studies have found a positive relationship between the economic development and quality of housing and access to basic amenities like electricity, safe drinking water, toilets. Infrastructure investment directly affects the economic development. Therefore, this is the only way to build up a country’s economy and raise per capita…show more content…
Socioeconomic development can be facilitated and accelerated by the presence of infrastructure. It has been universally recognized that an adequate supply of infrastructure services is an essential ingredient for productivity and growth. If these facilities and services are not available, development will be very difficult, it will lead negative effect on the production activities of the economy, which means lower levels of production capacity is always leads to the under utilization of the resources, scarcity of goods and services. People will spend more money for getting basic needs and facilities. A well-functioning infrastructure including, electric power, road and rail connectivity, telecommunications, air transport, and efficient ports most required for rapid growth. Without these either economic production will suffer or the quality of life will deteriorate. So these activities are essential inputs to the economic system. Adequate and efficient infrastructure is crucial because of its impact on efficiency and growth of other economic activities, and in turn, on the welfare of the society. Apart from growth infrastructure has a direct relationship with

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