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Infrastructure Essay

2755 words - 12 pages

Infrastructure and Economic Development in Africa
Infrastructure and Economic Development in Africa
2014
Mohamed Salah Abdel Rehim 10200210

12/21/2014
2014
Mohamed Salah Abdel Rehim 10200210

12/21/2014

Presented to: Dr. Azza El Sharabasy
Course: Economic Development
Presented to: Dr. Azza El Sharabasy
Course: Economic Development

Table of contents

* Introduction
* Literature review
* Africa’s infrastructure endowment
* Ways of financing infrastructure
* Impact of Infrastructure on Economic Growth.
* Conclusions and recommendations
* References

Introduction

* Generally, a consensus has developed that, under ...view middle of the document...

* Taken as a whole, all these constraints corrode Africa’s competitiveness and make exporting African goods and services to the global marketplace nearly impossible. According to the World Bank’s 2009 doing business, most SSA countries with few exceptions, rank in the bottom 40% of all countries in trading across the national borders.

Literature review
Definition and key infrastructure sectors:

* Characteristics of infrastructure:
A. Public, nonexclusive goods accessible to all people.
B. It has long payback periods.
C. Its output is paid for by local currency.
D. Sensitive to corruption and political power centralization.
* The definition of infrastructure is not being shifted from only focusing on physical assets such as roads, airports, sea ports, telecommunication systems and water distribution systems; as it is now often include “softer” types of infrastructure such as the information systems.
* Ultimately, therefore, infrastructure refers to all basic inputs that are required for the adequate functioning of the economy (Button 2002).
* Moreover, we can divide the infrastructure into two main broad categories, economic and social infrastructure.
* Economic infrastructure, is the one used to help production (e.g. electricity, roads and ports) and serves as an input in producing consumed items by households (e.g. water, sanitation and electricity). Economic infrastructure can be further subdivided into 3 more categories:
* utilities (power, piped gas, telecommunication, water and sanitation),
* public works (roads and dams) and
* transport sector (railways, seaports and airports). On the other hand,
* Social infrastructure includes services such as education, recreation and health which has direct and indirect effect on the quality of life, directly, as it improves the level of productivity in the economy and indirectly as it leads to higher economic growth and real incomes.
Infrastructure and the millennium development goals:

* The millennium development goals “MDGs” it is a declaration made by the United Nations in the summit of September 2000 that commit the international community to a broad vision to poverty reduction and strongly place the human development process at the core of social and economic progress in all the world countries
* Therefore, the infrastructure is ultimately the base of all the MDGs, as it was proved that the contribution of infrastructure in halving the income poverty “no.1 MDG” is more significant than any other factors
* Also, the infrastructure affects the no-income aspects as it helps in improving health, nutrition and education. For example, roads can contribute in decreasing transaction costs, raising school attendance especially for girls; improve accessibility to hospitals and encouraging the international connectivity.
Infrastructure and economic development
According to the department for...

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