Economic growth

The crucial question is whether the push for more infrastructure will raise economic growth and people’s well-being. It could – but only if the focus is on quality and impact and not on the quantity and volume of investment.

Economic policymakers assume that infrastructure—energy, transport, communication, irrigation, water supply—propels economic output. The direct effect is raising the productivity of land, labour, and other physical capital. For example, a steady supply of electricity reduces disruptions and time wasted at the work place. It complements the contributions of education, health, marketing, and finance. The immediate effect of new infrastructure can be substantial, either by increasing output or stimulating new investment in machinery and equipment. When electricity supply disruptions are eliminated or available hours increased, as seen in Bangladesh or the Philippines, farmers and firms respond with greater supply... — Blogs.adb.org/blog