The Role of Infrastructure in Urban, Rural, and Regional Development: A Survey of Literature Sophremiano B. Antipolo Philippine Planning Journal, UP SURP, Diliman, QC Vol. XXIV, No. 1, October 1992

Key elements to the process of development: --economizing behavior: human factors, capacity, ability, willingness to change --economizing setting: physical, socio- cultural and institutional factors --Infrastructure is an important component of economizing the setting of rural, urban, and regional development

Three basic sets of questions:  What is infrastructure?  What is the role of infrastructure in spatial development? What is the relationship between infrastructure and socioeconomic characteristics of urban and rural areas and their capacity to attract productive investments?  What are the effects or impacts of infrastructure upon urban, rural, agricultural, and regional development?

Infrastructure: Definition and Role --overhead capital Hirshman:  Wide definition: include public utilities, docks, water supply, electricity, transport, schools, hospitals, law and order, education, public health, transportation, communications, power, irrigation, drainage, etc  Narrow definition: power and transportation

Stanford Research Institute:  Physical Infrastructure: facilities directly supporting industrial production and distribution such as electrical power, road, rail transport, telephone communication, water supply, sewerage, and industrial waste disposal  Social Infrastructure: basic requirements of housing, schooling, and hospital and health services for urban industrial employees and their families, together with the residential share of refuse disposal, police and fire protection services

Role of Infrastructure in Spatial Development  Infrastructure as a Basis For Urban and Rural Development --no primary, secondary or tertiary activities can take place without the provision of basic services (Hirshman) --infrastructure provides a productive environment, attracting investors and workers alike. (Wingo) --Balanced Growth Theory: bundles of investments must be at the right place at the right time if investments are to have any impact on development

 Infrastructure as a Basis For Urban and Rural Development… -- provision of infrastructure is believed to have a catalytic effect especially during the pre- industrial stage. (Rosentein-Rodan) --lack of road is the greatest handicap to a productive economy—physical and intellectual isolation. (Johnson) --infrastructure investment is important in less developed countries’ effort to industrialize. (Steele)

Infrastructure as a Policy Tool --in LDCs, infrastructure are deficient; financial incentives would be ineffective until infrastructure deficiency is remedied --infrastructure can be potentially used as a policy instrument since bulk of the infrastructure investment is publicly taken. (Salama)

Effect/ Impact of Infrastructure: Evidence  Effect on urban spatial development --market and infrastructure are positively correlated with the locational pattern of industries; infrastructure is positively associated to the potential absorptive capacity of urban areas. (Wubneh)

--the presence of a combination of various elements of infrastructure makes the difference in attracting industries or generating development in the region --the poor and often faulty spatial structuring strangled the development efforts of most developing countries

 Effect on agricultural and rural development Wanmali: Hard infrastructure—physical infrastructure Institutional infrastructure--government agencies involved in development planning Soft infrastructure—service sector

--hard infrastructure should be coupled with soft infrastructure to facilitate agricultural development and regional growth --significant role of accessibility in the household use of services

 Effect of rural development Ahmed and Hossain: --infrastructure has bearing on rural development; it has a positive effect on marketing of agricultural product --demand for credit to enhance capital in business is enhanced by infrastructure development

--infrastructure contributes to increase in total wage earnings and thus income of households --infrastructure alters consumption pattern and increase savings --infrastructure development has a positive effect on poverty alleviation

Conclusions and Policy Recommendations --infrastructure has the capacity to attract industries and to cause spatial development --unless the lack of infrastructure is a significant obstacle, the remedy of the deficiency will not bring about the desired changes--supply of infrastructure has to be on a collective rather than individual basis --physical infrastructure is an important factor to support productive activities directly

Conclusions and Policy Recommendations... --there should be a right package of infrastructure investment to promote widespread development --by increasing the mobility and profitability of financial intermediaries, infrastructure can facilitate the emergence and growth of financial institutions that increase access to working and investment capital

Geography 161 First Sem, Reported by: Adrian R. Mendoza