Infrastructure: Burden or opportunity?

The current project implementation method must undergo profound restructuring and reform.

Infrastructure development has long been touted as the key to larger economic development. The impact of infrastructure on output works through two distinct channels—direct and indirect. While the direct impact can be discerned from its contribution to gross domestic product (GDP) formation and also from being a factor of production in the production process, the indirect impact arises from enhanced efficiency in the use of inputs as a result of improved total factor productivity. In this way, infrastructure can take the form of “economic infrastructure” which includes power supply, transportation, telecommunication and water and sewage or the form of “social infrastructure” which includes hospitals, schools and social housings.