Module 1 : Infrastructure Development - Introduction

Lecture 1 : Infrastructure Development and Economic Growth

Infrastructure and Wealth: Availability of adequate infrastructure affects land values and consequently wealth. In urban areas, water and sanitation infrastructure, access to roads and public transit routes, and connection to power have a major impact on real estate values. For example, properties adjacent to roads have higher land values than plots which are far away. In case of lack of access to proper infrastructure, the weaker sections of the society will not be able to make arrangement to alternative sources as they may be unaffordable to them.

Impacts of Infrastructure on the environment: The effects of infrastructure on the environment could be positive as well as negative depending on the nature of the infrastructural development and what alternatives are. Potential harmful environmental effects such as ozone depletion, soil erosion, and deforestation could result from various infrastructure activities such as power generation, road construction. Inadequate infrastructure facilities could lead to various environmental problems which have immediate and serious implications for health and productivity. Negative environmental impacts also often results from neglecting the interdependencies between the various infrastructure sectors. For instance, underinvestment in sewerage relative to water supply scheme will led to contamination of water reserves. Improper management of solid waste will affect the wastewater disposal and storm water drainage.

On the other hand, beneficial effects will result from synergism among activities in various infrastructure sectors. Investment in landfills for solid waste treatment will allow both safe decomposition of organic matter and extraction of methane which could be used as an alternate source of power. Development of wastewater treatment facilities will help in disposal of untreated wastewater to natural water sources, protect the natural habitat and allow treated wastewater to be used for irrigation.