We live in a remarkable world. Through technology, we can buy stocks, such as HOFD stock, so easily, and keep an eye on its growth. The medical field has also been positively affected by technology. Also through technology, we see communities rising faster and stronger through infrastructure planning. Infrastructure is a term used to describe the physical systems of a region or business. The best example is communication networks, transportation systems, electric systems, sewage, and water systems. The systems are capital intensive, and they’re regarded as high-cost investments. They also play a key role in the economic development of a nation.
Any project that is infrastructure-related can be funded privately, publicly, or through a partnership between the private and public sectors. Infrastructure mainly involves producing goods that usually support a natural monopoly.
Why Is Public Infrastructure Important When It Comes to a Growing Community?
Good quality infrastructure comes in handy such that the economy will grow fast and the growth will be inclusive. The term inclusive growth means that the majority will share the growth benefits in the country. Therefore, inclusive growth means that it is possible to eradicate poverty while ensuring income inequality has reduced.
For instance, small, medium, and micro enterprises have been dispersed all through the economy, and their growth and production needs access to reliable and quality infrastructure services so that they can easily compete with larger enterprises that are capable of building their infrastructure, including installing generators and small power plants. Large firms can also ensure their base of operation is in prime areas such as ports where the infrastructure that is required is readily available.
Small enterprises have been dispersed throughout the economy, and they usually rely on how available general infrastructure facilities are available. When the general infrastructure is built up, the small enterprises will compete well with large-scale sectors. Small enterprises are also labor-intensive, which means they’ll create more employment opportunities. As a result, in developing nations, it is possible to eradicate poverty.
When infrastructure facilities such as rural electrification, road transport, and irrigation are expanded, it is possible to promote agricultural growth. Also, it is possible to set up industries that focus on agro-processing. The general infrastructure allows the investors owning processing companies and farmers to get the fertilizers and raw materials they need at affordable rates. It is possible to transport the farm produce at ease.
A poor farmer will gain from improved infrastructure so that the input cost will go down. The monopoly of traders will reduce, and agricultural production will increase. The access to markets is what brings an end to the monopoly. Better road transport equates to great access to resources such as hospitals and schools.
What Are the Different Types of Infrastructure?
There are different types, and they include:
1. Soft Infrastructure
Soft infrastructure usually makes up institutions that usually help in maintaining the economy. This type of infrastructure usually relies on human capital, and the main focus is on delivering different services to the general population. The best example is financial institutions, healthcare systems, law enforcement, governmental systems, and education systems.
2. Hard Infrastructure
Hard infrastructure makes up physical systems that make it possible to run an industrialized and modern nation. The most suitable examples include highways, roads, bridges, and assets that are required to ensure they’re operational, including vehicles, transit buses, refineries, among others.
3. Critical Infrastructure
Critical infrastructure mainly comprises assets deemed important by the government since they allow the economy and society to function well. Some of these assets include facilities for heating and shelter, public health, telecommunication, agriculture, among others. In the U.S., different agencies usually handle the critical infrastructure, including the Department of Energy, Department of Education, and Homeland Security.
The Power of Energy
Energy plays a key role in each economic activity in a nation. As a result, rapid growth is only possible when there is adequate power. It plays a key role in the growth of the agricultural sector and commercial businesses.
Improved labor productivity also equates to better use of electricity obtained from different sources, including oil, gas, and coal. The energy consumption by different nations will vary significantly around the globe. In the U.S., the amount of energy consumed per capita is high same as in developing nations.
We now have an overview of what infrastructure entails. Also, we have learned more about how public infrastructure plays a key role in the growth of a community. For instance, public infrastructure allows small businesses to compete with large firms since the playing field has been leveled. Public infrastructure ensures accessibility has improved.