Modern College Of Arts,

Science & Commerce

Ganeshkhind, Pune

Department of Economics

M. A. Part – II (Sem. IV)

Name: Vinod Sitaram Pawar

Roll No. 1850024
Subject: Growth & Development
Assignment : The Role Of A Infrastructure –
Social, Physical , Education & Health

Guide: Dr. Abaso Shinde Sir

INTRODUCTION

The development of a country wholly depends on the availability of its

infrastructural facilities. Infrastructure plays a vital role in the improvement of
the country’s standard of living. It also plays an important role in contributing
to a higher rate of economic growth.

MEANING OF ECONOMIC INFRASTRUCTURE

Economic infrastructure refers to the facilities, activities and services which
support operation and development of other sectors of the economy. These
facilities, activities and services help in increasing the overall productivity of
the economy. They also play an essential role in facilitating the smooth
running of all the sectors of the economy.

In addition, infrastructures are such basic requirements like railways, roads,

ships, airways, communication, etc. They also include energy, banking,
science, technology, health, education and other public utility concerns.
Without the existence and presence of economic infrastructures, the growth
and fast pace of the economy is impossible. Moreover, infrastructures of an
economy are also termed as ‘social and economic overheads‘.

IMPORTANCE OF ECONOMIC INFRASTRUCTURE

Economic infrastructure is the nerve centre of the economic system. It plays
an important role in the development of not only the economy but of the
civilization as well. It is a public utility service which gives place and time
utility to goods and services. They link production, distribution centres and
the end consumers as well. Therefore, infrastructures bring together the
elements of the economic system.

To conclude, let us discuss some of the prime importance of infrastructures.

I. They help in the development of the market and all the elements
within.
II. It also facilitates large-scale production for the purpose of smooth
functioning of the economy.
III. They result in the territorial division of labour which is great.
IV. They also ensure price stability in the market.
V. Economic infrastructure definitely ensures the mobility of labour and
capital within/from the economy.
VI. It results in the overall growth of towns and cities.
 VII. Infrastructures provide for a lot of employment generation and
employment opportunities.
VIII. They also play a crucial role in national defence activities.
IX. Infrastructures in the economy directly result in the unity of various
economic components.
X. The economy and the nation will be able to meet any emergencies that
arise.
XI. It creates a place and time utility.
XII. Infrastructural development plays a vital role in the development of
agriculture and industry.
XIII. Infrastructure like transportation, communication and
telecommunication breaks any economic isolation that prevails in the
country.
XIV. They are a great and rich source of revenue to the Government.
XV. The development of economic infrastructure will directly result in the
development of economic trade.

TYPES OF INFRASTRUCTURES
01. Social infrastructure. They concern with the supply of such services as
to meet the basic needs of a society. In simple words, social
infrastructures refer those basic services such as education and
training. It also includes health and sanitation, drinking water, housing,
sewerage, etc. Social infrastructures are also termed as ‘social
overheads’. These social overheads indirectly support the economic
systems. They indirectly increase the productivity and the economy sees
the impact after some time. Social infrastructures lead to growth in the
long run.
02. Physical infrastructure. Physical infrastructure is those
infrastructures which directly concern themselves with the needs of
such production sectors as agriculture, industry, trade, etc. In simple
words, physical infrastructure directly supports the economic
production. They also directly support the process of production and
distribution in the economy. A few such examples are energy, irrigation,
transportation, telecommunication, banking, insurance, technology,
finance, etc. Physical infrastructures, however, directly increase the
productivity and the economy sees the impact immediately. They also
lead to an immediate growth in the short run.

The Importance of Education in Economic Development

Prior to the nineteenth century, systematic investment in human capital
was not considered specially important in any country. Expenditures on
schooling, on-the-job training, and other similar forms of investment were
quite small. This began to change radically during this century with the
application of science to the development of new goods and more efficient
methods of production, first in Great Britain, and then gradually in other
countries. During the twentieth century, education, skills, and the acquisition
of knowledge have become crucial determinants of a person’s and a nation’s
productivity. One can even call the twentieth century the “Age of Human
Capital” in the sense that the primary determinant of a country’s standard of
living is how well it succeeds in developing and utilizing the skills and
knowledge, and furthering the health and educating the majority of its
population.
Investment in human capital can have little impact on growth unless people
can use education in competitive and open markets. The larger and more
competitive these markets are, the greater are the prospects for using
education and skillsercent in Mexico to as high as 23 percent in Ghana
(Psacharopoulos, 1984).
Education and Productivity
Clearly the educational provisions within any given country represent
one of the main determinants of the composition and growth of that
country’s output and exports and constitute an important ingredient in
a system’s capacity to borrow foreign technology effectively. For example:
health and nutrition, and primary and secondary education all raise the
productivity of workers, rural and urban; secondary education, including
vocational, facilitates the acquisition of skills and managerial capacity;
tertiary education supports the development of basic science, the
appropriate selection of technology imports and the domestic adaptation
and development of technologies; secondary and tertiary education also
represent critical elements in the development of key institutions, of
government, the law, and the financial system, among others, all essential for
economic growth.
What Is Public Health Infrastructure?
We rely on many different kinds of infrastructure in our daily lives. We rely on
roads to travel from one place to another, telecommunications systems to
connect with one another, and electrical grids to deliver our electricity.
Infrastructure is the underlying foundation of our society.
We also rely on public health infrastructure to keep us healthy. Public
health is the science of promoting and protecting the health of people and the
communities where they live. Public health focuses on promoting health and
preventing disease and injury at the population level. Federal, State, and local
health agencies rely on basic infrastructure to monitor population health and
respond to community health needs. Infrastructure is the basis for planning,
delivering, and evaluating a wide range of essential public health services.
The Importance of Public Health Infrastructure
Protecting the health of entire communities is a massive undertaking that
requires large-scale, coordinated efforts. It requires systematic data collection
to monitor community health needs and identify underlying causes of health
problems. It also requires a well trained network of public health professionals
to develop and implement evidence-based health policies and intervention
programs.
Infrastructure allows public health professionals to respond to ongoing health
problems, such as chronic disease, and prepare for and respond to emergency
health threats, such as natural disasters and disease outbreaks. Without a
strong public health infrastructure, deadly disease outbreaks can become
even deadlier. For example, during the 2014 Ebola outbreak in West Africa,
poor disease surveillance, a shortage of health workforce, and a lack of proper
communication all contributed to widespread transmission of the Ebola virus.
Key Components of Public Health Infrastructure
Earlier, we discussed how roads are an important form of transportation
infrastructure. However, roads are just one of several key components of our
transportation infrastructure. We also rely on bridges, railways, and airports
to travel from one place to another.
Public health infrastructure is similarly made up of several different
components. The three key components of a strong and effective public health
infrastructure are:

1. Capable and coordinated public health agencies

2. A well qualified public health workforce
3. Modern data and information systems

Public health agencies play a central role in public health infrastructure. Local
health departments are the front line for delivering basic public health
services. Their success requires a great deal of coordination with state health
departments and federal public health agencies, such as the National
Institutes of Health (NIH) and the Centers for Disease Control and Prevention
(CDC).
 A strong public health infrastructure also requires a diverse network of well
trained health professionals. From doctors and nurses to researchers and
policy experts, there are many different types of professionals who are needed
to advance public health goals.
Systematic data collection is a core function of public health infrastructure.
Up-to-date data and information systems are needed for routine disease
surveillance, tracking disease outbreaks, identifying underlying causes of
disease, and evaluating the effectiveness of public health services.
SIGNIFICANCE OF ECONOMIC INFRASTRUCTURE
According to 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 fulfil our declared objectives of a self-
accelerating process of economic development”.

Discussed below are some of the most critical significance of economic

infrastructure and its impact on the economy.

 The smooth functioning of the economy. Infrastructural facilities are very

necessary and vital for the smooth functioning of the economy. They are like
wheels of development without which the economy will not be able to function
properly.
 Development of agriculture. The development of agriculture, to a
considerable extent, depends on the adequate expansion and development of
irrigation, credit, transport, power, marketing, training and education. It also
depends on the improvement of research and development and other such
facilities.
 Development of industry. Industrial production requires not only machinery
and equipment but also requires the following. Energy, skilled manpower,
management, banking, insurance and transportation services are crucial.
These activities and facilities will directly lead to the development of the
industrial sector of the economy.
 Promotion of investment. Infrastructural development is definitely a pre-
condition got increasing economic investments. Those areas with the sound
infrastructural base may succeed in attracting all the more capital for
investment.
 Improvement in productivity. Infrastructural development such as
transportation facilities and education increase the productivity. Development
of science and technology is also important in improving the economic
productivity. Moreover, research and development also play a critical role in
economic improvement.
 Employee generation. Infrastructures play a crucial role in the generation of
employment opportunities. They improve mobility, efficiency and productivity
of labour. Moreover, larger investment, development of industry and
agriculture create all the more employment opportunities.
Some of the secondary but essential significance of the economic
infrastructure are as follows.

 Development of backward regions. The development of backward regions

and the removal of regional imbalances is yet another significant contribution
of infrastructural facilities. The lack of infrastructural facilities in the
backward regions will act as a constraint on the development of those regions.
 Social change. Infrastructural facilities will also act as an instrument of
social changes. Development of industries, transport facilities and education
will change the outlook of people. Apart from these, even science, technology
and growth of towns and cities will lead to a changed economic outlook.
 The growth of GDP. There exists a very close relationship between spending
for infrastructure and GDP growth. Studies reveal that 1% growth in the stock
of infrastructure often associates with 1% growth in per capita GDP.
 All round development/Overall development. Infrastructural development
is important not only for economic growth but also for the overall
development. The all-round development of the country and economy is
crucial. Infrastructural facilities are also necessary for technological
innovation. Along with technological innovation, economic infrastructural
facilities are also important for the eradicating poverty and enhancing
globalization.