268 words short essay on Infrastructure

268 words short essay on Infrastructure

Infra-structure of an economy can often be classified into economic and social infra-structures. In the economic infrastructure, we include: (a) Energy, (b) Transport system, (c) Communications, (d) Banking, finance and insurance, and (e) Science and technology. While social overheads (or infrastructure) consist of education, health and civic amenities (like water supply, sanitation, housing, etc.).

It has been mentioned in the World Development Report that “The adequacy of infrastructure helps determine one country’s success to another country’s failure in diversifying production, expanding trade, coping with population growth, reducing poverty and improving environmental conditions.”

Good infrastructure raises Productivity and lowers production cost. It should not only develop rapidly rather its development should precede the development of other sectors.

World Bank is of the opinion that there is a direct and proportional relation between infrastructure and production. As a result of one percent increase in infrastructure there is one per cent increase in production.

Infrastructure refers to the facilities, activities and services which support operation and development of other sectors of the economy. They are useful in the daily life of the society. They include:

1. Sources of energy; (Coal, Electricity, Petroleum etc.)

2. Transport services; (Railways, Roads, Shipping, and Civil Aviation etc.)

3. Communication facilities. (Post offices, Telegraphs, Telecommunications, Broadcasting T.V. etc.)

In the words of Dr. V.K. R.V. Rao, “The link between infrastructure and development is not a once for all affair. It is a continuous process; and progress in development has to be preceded, accompanied and followed by progress in infrastructure; if we are to fulfill our declared objectives of a self accelerating process of economic development.”