GOOD INFRASTRUCTURE KEY TO ECONOMIC DEVELOPMENT
Written by Millennium on July 27, 2019
WE agree with the observation by Economics Association of Zambia (EAZ) president Lubinda Haabazoka that infrastructure development is key to national economic progress.
Certainly, while we do not share Dr Haabazoka’s and the EAZ’s opposition on government’s decision to cut public spending to promote liquidity in the economy, we certainly share their views on the need to invest into growing the national infrastructure base as a launch pad for sustainable economic development.
“As Economic Association of Zambia (EAZ), we are on record that we are against the austerity measures that government has announced, this is so because cutting spending cuts economic growth… we need to develop our infrastructure in Zambia,” Dr Haabazoka is reported to have said in Livingstone recently during a welcoming cocktail for delegates to the first ever National Economic Summit held at Avani Victoria Falls Resort.
Indeed, experience has shown that countries with developed infrastructure rarely suffer serious economic challenges and if they do, it’s only for a short while because the well-developed infrastructure is able to cushion the recovery efforts.
Indeed, it takes little analysis to realise how infrastructure plays a major role in the economic growth of a nation, whether developing or developed.
In fact, good infrastructure management is of great importance to the economics of countries the world over.
We need to note here that one of the major challenges to any economic development efforts by any nation is the ability to provide infrastructure services that meet the demands of business, household and other users.
The provision of appropriate economic infrastructure can actually expand the productive capacity of the economy by increasing the quantity and quantity of such infrastructure.
Better management of economic infrastructure would have positive output, income and employment effects on any economy. Moreover, it will impact directly on the poor, thus reducing poverty.
Important national goals depend on good infrastructure. The economy needs reliable infrastructure to connect supply chains and efficiently move goods and services.
Infrastructure connects households across the nation to opportunities for employment, healthcare and education.
Road and railway infrastructure have been found to be a significant factor of economic growth and development while other facilities like airports, communication networks, also play a positive impact on the growth and developments of countries.
Infrastructure will provide benefits to the rich and poor equally because of the non-exclusionary nature of the consumption of public goods and services it provides.
It does so to the extent that infrastructure improves the quality of life for the poor; the development of infrastructure is likely to alleviate poverty.
