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The Role of Infrastructure in Urban, Rural, and Regional Development: A Survey of Literature Sophremiano B. Antipolo Philippine Planning Journal, UP SURP,

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Presentation on theme: "The Role of Infrastructure in Urban, Rural, and Regional Development: A Survey of Literature Sophremiano B. Antipolo Philippine Planning Journal, UP SURP,"— Presentation transcript:

1 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

2 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

3 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?

4 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

5 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

6 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

7  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)

8 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)

9 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)

10 --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

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

12 --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

13  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

14 --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

15 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

16 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

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18 Geography 161 First Sem, 06-07 Reported by: Adrian R. Mendoza


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