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Presentation Structure
Definition of Development
Definition of Infrastructure
Example of International and local Infrastructure project
The impact of Infrastructure on Development
Infrastructure Development in India
Role of Infrastructure in Economic Development in India
Economic development is fundamentally about enhancing the factors of productive capacity - land, labor, capital, and technology of a national, state or local economy
By using its resources and powers to reduce the risks and costs which could prohibit investment, the public sector often has been responsible for setting the stage for employment-generating investment by the private sector.
The basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, college,hospital,post offices etc.
Modern day thinking suggest that other forms of infrastructure exists, these include Technology and Human infrastructure.
Technology infrastructure consists of science, engineering, and technical knowledge available to the nation’s industries.
Human infrastructure consider education and training as a form of investment that will generate future benefits
To gain a better appreciation of the various types of physical infrastructure we can briefly review various infrastructure projects
We will look at three International and three Local Physical Infrastructure Projects
The top 10 construction achievements of the 20th Century are:-
1. Chunnel Tunnel.2. Golden Gate Bridge 3. Dwight D. Eisenhower System of Interstate and Defense Highways4. Empire State Building5. Hoover/Boulder Dam6. Panama Canal. 7. Sydney Opera House. 8. Aswan High Dam9. World Trade Center10.Chek Lap Kok Airport in Hong Kong.
Of these projects I have selected the Tunnel, Golden Gate Bridge and the Panama Canal for review.
International Infrastructure projects-The Tunnel
The opening of the Channel Tunnel in 1994 turned the centuries old dream of a fixed link between the UK and mainland Europe into a reality
The average depth of the tunnel is around 150 feet under the seabed
It consists of two single-track railway tunnels and a central service tunnel used for safety and services
There are three different tunnels that make up the Chunnel. It consists of two single-track railway tunnels and a central service tunnel used for safety and services
The tunnels are used for both freight and passenger traffic
The three tunnels combined make up 95 miles of tunnels dug by nearly 13,000 engineers, technicians, and workers.
International Infrastructure - The Panama Canal
The Panama Canal crosses the Isthmus of Panama, in Central America, and allows vessels to travel between the Pacific and Atlantic oceans
The waterway measures 64 km (40 miles) and enables vessels to avoid travelling around South America, thereby reducing their voyages by thousands of miles and many days
It was built by the United States from 1904 to 1914
It was the largest and most complex project , employing ten thousands of workers. Total cost to date has been approximately US$11.52
International Infrastructure – Golden Gate Bridge
The Golden Gate Bridge is a 1.7 mile-long suspension bridge that took over four years to build and links San Francisco with Marin County
The Golden Gate Bridge was opened to vehicular traffic on May 28, 1937.
The bridge's two towers rise 746 feet and the bridge crosses Golden Gate Strait which is about 400 feet
The Golden Gate Bridge was completed at a construction cost of US$438M in 2002 dollars.
Local Infrastructure – National Highways of India
The National Highways Network of India, is a network of highways that is managed and maintained by agencies of the Government of India
These highways measured over 70,934 km as of 2010, including 15,000 plus km are 4 or 6 laned and remaining are 2 laned
The National Highways Authority of India (NHAI) is the nodal agency responsible for building,and maintaining most of the national highways network
It operates under the Ministry of Road Transport and Highways
Local Infrastructure – Ports
India has a long coastline, spanning 7516.6 kilometres, forming one of the biggest peninsulas In the world There are also 7 shipyards under the control of the central government of India, 2 shipyards controlled by state governments, and 19 privately owned shipyards The major ports handled 423.4 million tons of cargo for the financial year 2005-2006, with Vishakhapatnam, Kochi, Paradip Port, Chennai Port and Kandla carrying the greatest tonnage
The Impact of Infrastructure on Development
Note that the examples of infrastructure that have been presented so far only represent a small subset of the possible types of infrastructure projects. Infrastructure as noted in our earlier definition includes:
Transportation systems Communications systems
Water supply
Power supply
Public institutions
• Post Offices• Fire Stations • School• Parks
The Impact of Infrastructure on Development
Research on the impact of infrastructure on growth has concluded that the role of infrastructure in growth is substantial, significant and frequently greater than that of investment in other forms of capital projects.
Infrastructure services, such as power, transport telecommunications, provision of water and sanitation are central to the activities of households and to economic production.
Infrastructure represents the wheels of economic activity and is used in the production process of nearly every sector. Transport, for example, is an input for every commodity, while our very lives, let alone economic activity,would be impossible without water.
Users demand infrastructure services not only for direct consumption but also for raising their productivity.
The Impact of Infrastructure on Development
Infrastructure covers many sectors and can collectively represent a large share of a country’s economy.
Infrastructure typically represents about 20% of total investment and 40- 60% of public investment in most developing countries.
Public infrastructure investments range from 2-8% of GDP
Infrastructure Development in India- Power Sector
The power in India growth from the present generation capacity of 2,00,000 MW to 4,00,000 MW by 2022 the terminal year of the 13th Five-Year plan
All sources of energy conventional coal, hydro, solar, and nuclear are all bound to grow simultaneously in the coming years due to the well enunciated policy issues by the Govt
China is a $ 8 trillion economy today and America a $ 16 trillion economy. India will definitely grow and if the economy grows at 5 per cent the power sector has to grow at 7 to 8 per cent.
Infrastructure Development in India- Oil and Gas
India 5th largest consumer of energy
About 5.7 billion barrels of proven oil reserve
FDI worth us$ 3332.78 million during April 2000 to December 2011
Infrastructure Development in India- Telecommunication
3rd largest in the world and 2nd largest in Asia
Mobile subscriber base 936.12 million
Broadband subscriber 13.42 million
In the late 2000s, India's growth reached 7.5%, which will double the averag income in a decade. It say that if India pushed more fundamental market reforms, it could sustain the rate and even reach the government's 2011 target of 10%.[
The annualized 1999–2008 growth rates for Tamil Nadu (9.8), Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%) were significantly higher than for Bihar (5.1%),India is the tenth-largest economy in the world and the third largest by purchasing power parity adjusted exchange rates (PPP). On per capita basis, it ranks 140th in the world