Transportation infrastructure avoids mass poverty
Hassan Osman Gaal, 2017, Dean, Faculty of Economics and Management Science, Somali National University, “Lack of Infrastructure: The Impact on Economic Development as a case of Benadir region and Hir-shabelle, Somalia”, pg. 49-51, https://core.ac.uk/download/pdf/234683129.pdf,LMS
Infrastructure is the basic equipment and structures such as roads and bridges that are needed for a country, region, or organization to function properly. Infrastructure contributes to economic development by increasing productivity and providing services, which enhance the quality of life. The services generated as a result of an adequate infrastructure base will translate to an increase in aggregate output such as increased agriculture output of farmers through improved roads, creation of a sea ports, Rail links., Electrical generation, transmission and distribution, Water and irrigation projects,- Increase quality of life and Urbanization of different areas (Akinyosoye, 2010) Majority of poor people in the world live in rural areas where the level of public infrastructure especially roads seems low. The inadequate roads and poor road access put high cost of transportation; reduce ability to use access high quality inputs; limit the uses of local markets to the sales of their products, the purchase of consumer goods and opportunities for off-farm employment. Poor road access has put nevertheless constraints for rural poor people in terms of access to other social infrastructure such as education and health facilities. Therefore, improvement of rural road seems to be a clear means by which large numbers of people might acquire the opportunity to participate in the market economy and thereby raise themselves out of poverty (Oraboune, 2008) Infrastructure is a key element of poverty alleviation. It often acts as a catalyst to development and enhances the impact of interventions to improve the poor’s access to other assets, e.g., human, social, financial, and natural assets. Its impact is felt both on the economic and social sectors. Without roads, the poor are not able to sell their output on the market. In India, it has been shown that roads alone account for seven percent of the growth in aggregate output of the rural areas. Without electricity, the industrialization process, which provides the poor an important source of employment, is unlikely to take off. In Costa Rica, a retrospective review of the rural electrification experience through electrification cooperatives indicates that for one of these cooperatives the number of major businesses jumped from 15 to 86 after electrification .Without potable water and sanitation health is at risk. The social and economic impact often go hand in hand (Pouliquen, 2000) Many of the world’s poor people live in rural areas isolated by distance, terrain and poverty from employment and economic opportunities, markets, healthcare and education. Lack of basic infrastructure such paths, trails, bridges and roads and access to transport services makes it difficult for poor people to access markets and services. There is clear evidence that rural isolation is associated with low agricultural productivity linked to poor market access and low use of fertilizers and modern agricultural technologies. It is also linked with poor health and low school enrolment. Rural isolation can imprison the elderly and people with disabilities. Good Developing Country Studies www.iiste.org ISSN 2224-607X (Paper) ISSN 2225-0565 (Online) Vol.7, No.1, 2017 50 transport infrastructure is a necessary condition for economic growth and poverty alleviation, but transport investments alone cannot address the problems of the poorest households (Starkey & Hine, 2014) The adequate supply of infrastructure services has long been viewed as essential for economic development and poverty reduction, both in the policy and academic realms. More recently, increasing attention has also been shifting to the impact of infrastructure on poverty and inequality (Ariyo and Jerome, 2004; Calderon, 2008; Estache and Wodon, 2010; Ogun, 2010). Over the last two decades, considerable efforts have been devoted to theoretical and empirical evaluation of the contribution of infrastructure to growth and economic development (Programme, 2011) Poverty reduction requires economic growth which, when accompanied by sound macroeconomic management and good governance, results in sustainable and socially inclusive development (ADB 1999). Greater access of the poor to education and health services, water and sanitation, employment, credit, and markets for produce is needed. Moreover, the vulnerability of the poor to economic shocks and natural disasters must be reduced to enhance their well-being and encourage investment in human capital and in higher-risk and higher-return activities. Public policy reforms and investment in physical infrastructure will significantly contribute to the pursuit of socially inclusive development (Ali & Pernia, 2003). Roads, railroads, ports, lighthouses, fairways, inland waterways and airports with navigation systems for flight traffic make up the transport infrastructure system. Transport infrastructure systems are often seen as one of the core areas of any government’s activities. Over time and in most countries governments have been involved in the introduction of, the construction and maintenance of infrastructure systems. This involvement has led governments to take on a large number of roles in the transport infrastructure sector such as; regulator, financer, owner with responsibility for construction and maintenance and also in many cases with heavy involvement in the organizations carrying out transport services (Hasselgren, 2012). Sub-Sahara Africa vestiges the poorest region of the World despite the recent noticeable increase in per capital income growth rates of many countries in the region. Thanks to decades of economic stagnation, poor standard of living, ethnic cleansing and tribal wars, political instability and environmental disasters which had left infrastructure development uncared for. Infrastructure are public goods and services that goes into the production process as Complementary inputs for traditional factors of production such as capital, labour and Entrepreneur. They help to increase returns on investment by reducing production cost and improving transition efficiency (BELLO & OSINUBI, n.d) The availability of infrastructure facilities and services as well as the efficiency of such services to a large extent determine the success or otherwise of all other production endeavourers. Investments in infrastructures such as energy, water, transportation and communication technologies promote economic growth and help to alleviate poverty and improve living conditions in developing countries (OECD, 2006) Somalia is a country situated in the Horn of Africa. It is bordered by Ethiopia to the west, Djibouti to the northwest, the Gulf of Aden to the north, the Indian Ocean to the east, and Kenya to the southwest. Somalia has the longest coastline on Africa's mainland and its terrain consists mainly of plateaus, plains and highlands. The destruction of the country engulfed not only the bridges that link the regions together in economic wise, but devastated roads, water, transportation, education, communication, electricity, hospitals and all that may contribute the development of social infrastructure as well, thus, lack of infrastructure makes the economic development retarded, therefore, to the researchers’ best knowledge; there is no proof in the literature with respect to studies that examine the relationship between lack of infrastructure and economic development, however, this current study explores the impact of lack infrastructure on economic development. Developing Country Studies www.iiste.org ISSN 2224-607X (Paper) ISSN 2225-0565 (Online) Vol.7, No.1, 2017 51 CONCEPTUAL FRAMEWORK As the conceptual frame work postulates, lack of social infrastructure promotes, poor standard living, economic deficit, productivity decline, and free trade barriers that have negative impact on economic development.