Economic infrastructure includes communication networks, transportation, water purification, energy production, and services like education and healthcare. The government often plays a role in infrastructure development, and basic systems need to be maintained for economic growth. Private sector employment can also be considered part of economic infrastructure. Financing is a challenge for infrastructure maintenance.
Economic infrastructure often includes the systems that allow business to take place in a country. This usually refers to functioning communication networks as well as road, rail and air transport. Water purification and delivery is often considered essential to business and the economy. Structures such as dams and canals can be placed in this category, as well as irrigation systems for agriculture. Energy production and management, as well as services such as education, science, and health care within a country’s geographic boundaries, are generally considered essential components of economic infrastructure.
Improvements in infrastructure as a country’s economic status changes are often measured on a per household basis, the size of the workforce and per unit of land area. These measurements are typically used to monitor water and energy usage. Physical infrastructure is often important because water, power, sanitation, and communication systems are beneficial to business activity. The integrity of the transport system can also be assessed in this way, and the ability to repair and maintain roads and tracks is also taken into account.
The government often played an important role in economic infrastructure. In the United States of America, for example, industrial versus economic needs were met by important historical figures in the 1700s. Infrastructure such as canals, ports and roads have often been the subject of debate as technology advances, even in the Europe for hundreds of years. Middle Eastern civilizations, such as Mesopotamia, generally relied on water management systems; labor costs versus economic infrastructure maintenance have been frequently addressed in ancient and modern times.
There are different ways to assess what most benefits economic infrastructure. Analysts generally believe that basic transportation, water, energy and communication systems need to be kept in top condition. Otherwise, economic growth, usually measured by the value of a country’s gross domestic product (GDP), could suffer. The distribution of products, as well as the state of financial institutions, can also contribute to the well-being of the economic infrastructure.
Manufacturing, distribution and retail jobs, as well as other forms of private sector employment, are sometimes considered part of the economic infrastructure. Local or regional agencies can offer grants that can finance the construction and repair of pipelines, wastewater treatment plants or roads, for example. Financing is often an issue for maintaining many aspects of economic infrastructure, as well as workforce productivity.
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