Chapter 1_Introduction to Infrastructure

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Chapter 1: Introduction to Infrastructure

Chapter Outline

1.1. Introduction

1.2. What is Infrastructure1.3. Infrastructure and Economic Development1.4. Infrastructure and Social Development1.5. Characteristics of Infrastructure1.6. Infrastructure and Possible Roles of Actors1.7. Provisioning of Infrastructure and Services

Learning Objectives

After reading this chapter, the reader would become aware of the following aspects

related to infrastructure:

a. Definition of Infrastructureb. Importance of Infrastructure to Developmentc. Characteristics of Infrastructured. Roles of Various Actors in Infrastructure Creation and Service DeliveryRelevance

Over the last three decades, infrastructure has become a buzz word. The relevance of

infrastructure is reflected in the quantum of investment (~ US $ 800 billion, which is 2%of the world GDP) made annually to create and maintain infrastructure world over

(Morrow, 2008). An indicator of the growth in infrastructure sector is the increase in the

market capitalization of the Macquarie Global Infrastructure Index, which reflects the

stock performances of the infrastructure firms engaged in management, ownership and/or

operation of infrastructure. This index has grown from US $ 465 billion on March 31,

2000 (Morrow, 2008) to US $ 2,427 billion on March 31, 2008 (www.ftse.com). Rising

population, demographic changes, and positive macro economic trends are expected to

attract further investment in infrastructure, which has been growing at a rapid pace. India

expects to invest around US $ 1 trillion during 12th

Five Year Plan (2012-2017) as

against US $ 500 million targeted during 11th

Five Year Plan (2007-2012).


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1.1. IntroductionAccording to an online dictionary etymonline.com, the word infrastructure comes from

French origin. It has been used in English since 1927. The prefix infra means below and

hence infrastructure means below the structure. This word was initially used in the

military jargon.

Over the years, various researchers and policy makers have considered infrastructure with

slightly differing meaning as discussed in this chapter. Today, this word has become

more of an umbrella term. It refers to transportation (roads, railways, airports, sea ports,

inland waterways), energy (generation, transmission, distribution), water, sanitation,

sewerage, SEZs, industrial parks, townships, industrial clusters, IT parks, logistics parks,irrigation, healthcare, education, leisure and entertainment, retail, tourism, housing,

exhibition, and convention centers as infrastructure.

1.2. What is Infrastructure?At a conceptual level, infrastructure can be defined as the basic physical and/or

organizational structure required for the smooth functioning of an economy. It facilitates

production of goods and services, which have economic and/or social value eg., roads,

railway, electricity, water, health, education, IT etc.

Many researchers and policy makers also refer to infrastructure as social overhead

capital. Social because it is available to everyone (society at large) and not particularly

to one person, overhead because it is not tied to one part of production of goods or

services (rather allocated to various parts of production function), and capital because it

is used as a factor of production (input to production) in the economy. Capital is alsoused to connote the high upfront investments that are required to create infrastructure. In

other words, infrastructure (as social overhead capital) is a factor of production used to

create goods and services that are for everyone in the economy.


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Infrastructure should facilitate economic development, alleviate poverty, and sustain

natural environment. While economic development should encompass poverty alleviation

(through the trickle down effect) and sustain natural environment (through a sufficiently

long term perspective), it may not happen naturally since perspectives are often relatively

short term. Hence, we emphasize poverty alleviation since if society has to take-off,

poverty is going to be the millstone with tremendous externalities preventing economic

development. The third objective of sustaining natural environment is about how best to

use our natural resources, prevent environmental degradation etc. This objective gains

significance in the context of infrastructure, as it is very resource intensive.

Some policy makers and practitioners categorize infrastructure into economic and social

infrastructure based on the upfront investment required. Economic infrastructure

generally requires much higher investment as compared to social infrastructure.

However, there is no strict boundary bifurcating the two. It is more like a continuum

where high upfront investment end refers to economic infrastructure and low upfront

investment end refers to social infrastructure.

Infrastructure

Economic Social

Energy Telecom/IT Transport Housing Water supply Sanitation

Education Health

Figure 1-1: Economic and Social Infrastructure

At this point, we would like to highlight that some researchers use the term social

infrastructure in a very wide sense. Hall and Jones (1999) and Chin (2002) have defined


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social infrastructure as the institutions and government policies that make up the

economic environment within which individuals and firms make investments, create and

transfer ideas, and produce goods and services. Under this definition institutional set up

and legal environment would become a part of the social infrastructure.

These infrastructure can function in three different contexts: (i) urban, (ii) rural, and (iii)

cluster based development zones like industrial estates, agri parks, and special economic

zones. The context may bring their own challenges in provisioning of the infrastructure

and services. For example, provisioning of water in the urban context would primarily be

drinking water; in the rural context, it would primarily be irrigation; and in the context of

clusters, it would primarily be water for industrial use.

We provide some of the definitions of infrastructure as given by various committees and

institutions. These definitions have specific operational implications on areas like lending

norms, taxation, and investment incentivization etc.

1. Rakesh Mohan Committee (1996): Rakesh Mohan Committee was constituted as apart of the process to bring in changes in governance, upgradation and expansion of

infrastructure. The committee submitted its report in the form of India Infrastructure

Report 1996. It defined infrastructure as: electricity, gas, water supply, telecom,

roads, industrial parks, railways, ports, airports, urban infrastructure, and storage as

infrastructure.

2. Central Statistical Organization (CSO, 1996): Central Statistical Organizationkeeps record of the various infrastructure. For this purpose, it defines infrastructure

as: electricity, gas, water supply, telecom, roads, railways, ports, airports, and storage

as infrastructure.

3. Insurance Regulatory and Development Authority (2000): Insurance Regulatoryand Development Authority (IRDA) defines infrastructure to allow life insurance

companies to invest a portion of their investible corpus (current guideline says up to


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15%) in infrastructure. For this purpose, infrastructure has been defined as: road,

highway, bridges, airport, port, railways, road transport system, water supply project,

water treatment system, solid waste management system, irrigation project, industrial

parks, sanitation and sewerage system, generation-transmission-distribution of power,

telecom, project for housing, or any other public facility as may be notified in the

official gazette.

4. C. Rangarajan Commission (2001): Based on three characteristics of infrastructuresectors - natural monopoly, non tradability of output and creating externalities on

society: railway tracks, signaling system, stations, Roads, bridges, runways and other

airport facilities, T&D of electricity, telephone lines, telecommunications network,

Pipelines for water, crude oil, slurry, waterways, port facilities, canal networks for

irrigation, sanitation or sewerage.

Another set of three additional characteristics - high-sunk costs, non rivalness (up to

congestion limits) in consumption, and possibility of price exclusion - led to

identification of rolling stock on railways, vehicles, aircrafts, power generating

plants, production of crude oil, purification of water, ships and other vessels.

While identifying the above mentioned reports, the Commission recommended that

the list of infrastructure activities should be finalized by the Ministry of Statistics and

Program Implementation (MOSPI) on the basis of the characteristics mentioned

above.

5. Reserve Bank of India for Credit Facility (2004): Reserve Bank of India (RBI)defines infrastructure to identify the lending made in this sector by the various banks.

It defines infrastructure as developing or operating and maintaining or developing,

operating and maintaining any infrastructure facility that is a project in any of the

following sectors, or any infrastructure facility of a similar nature (this list would

change over a period of time based on government policy):

i. a road, including toll road, a bridge or a rail system


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ii. a highway project including other activities being an integral part of thehighway project

iii. a port, airport, inland waterway or inland portiv. a water supply project, irrigation project, water treatment system sanitation

and sewerage system or solid waste management system

v. telecom services whether basic or cellular, including radio paging, domesticsatellite service (i.e. a satellite owned and operated by an Indian company for

providing telecom service), network of trunking, broadband network and

internet services

vi. an industrial park or special economic zonevii.generation or generation and distribution of powerviii. transmission or distribution of power by laying a network of new

transmission or distribution lines

ix. construction relating to projects involving agro-processing and supply ofinputs to agriculture

x. construction for preservation and storage of processed agro-productsperishable goods such as fruits, vegetables and flowers including testing

facilities for quality

xi. construction of educational institutions and hospitalsxii.any other infrastructure facility of similar nature.

6. Income Tax Department (2005): For the purpose providing tax breaks, Income TaxDepartment defines infrastructure as: electricity, water supply, sewerage, telecom,

roads & bridges, ports, airports, railways, irrigation, storage (at ports) and industrial

parks.

7. World Bank (2006): Power, water supply, sewerage, communication, roads &bridges, ports, airports, railways, housing, urban services, oil/ gas production and

mining sectors


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8. The Economic Survey (2007): The economic survey presented by the Governmentof India recognizes infrastructure as power, urban services, telecommunications,

posts, roads, ports, civil aviation, and railways under infrastructure

9. RBI for Technical Commercial Borrowings (2007): For the purpose of commercialborrowing, RBI defines infrastructure as: power, telecom, railways, road including

bridges, sea port and airport, industrial parks and urban infrastructure (water supply,

sanitation and sewage projects)

10.Planning commission (2008): For the purpose of five year plans, PlanningCommission defined infrastructure as:

i. electricity (including generation, transmission and distribution) and R&M ofpower stations

ii. non-conventional energy (including wind energy and solar energy)iii. Water supply and sanitation (including solid waste management, drainage and

sewerage) and street lighting

iv. Telecommunicationsv. road & bridgesvi. portsvii.inland waterwaysviii. airportsix. railways (including rolling stock and mass transit system)x. irrigation (including watershed development)xi. storagexii.oil and gas pipeline networks

In the past, the Income Tax Department and RBI have modified the definition of

infrastructure based on the prevalent government policies to include certain industries

which need stimulus or special treatment for a particular period.

A comparison of the various definitions have been provided in the table below:


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Table 1-1: Actors and Possible Activities in Infrastructure

Source: www.infrastructure.gov.in

1.3. Infrastructure and Economic DevelopmentInfrastructure is considered as the backbone of any country as it affects economys

production function and hence economic growth. Production function is the most


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important channel that affects growth. There is abundance of literature which discusses

the contribution of infrastructure on output, productivity and welfare, both at conceptual

(theoretical) and empirical levels. Arrow and Kurz were one of the first to identify this

link in 1970 where they considered long term growth to be exogenously determined. The

model presented a positive relationship between infrastructure and growth. An

endogenous model of growth was developed by Barro in 1990 to demonstrate the

positive effects of infrastructure on growth. The details of these models can be referred

in any of the standard economics text books.

The empirical studies relating infrastructure and growth have been led by Aschauer

(1989). Most of the empirical works in this direction have focused the impact of

infrastructure on long term contribution to the level or growth rate of aggregate income

or productivity. However, the empirical studies are inconclusive about the causality part.

Apart from directly affecting the production function, infrastructure also drives growth

through other channels such as investment adjustment costs, durability of private capital,

and demand and supply of health and education services. Investment in infrastructure

enables a country to become competitive in provisioning of goods and services and

thereby helps in attracting private capital for investment.

Most of the researchers and policy makers believe in the positive affect1

of infrastructure

on an economy. However, the magnitude of the impact has been found to be varying

across countries. Empirical studies suggest that higher impact (measured on output,

growth, and production cost) is observed at lower levels of income (Briceno et al, 2004;

Romp and de Haan, 2005; Estache and Fay, 2007). The impact also depends on the state

and the extent of the existing networks since most of the infrastructure services are

provided through networks.

1 There are many authors who claim that causality is both ways between infrastructure and income

(economic growth). Since most infrastructure services are both consumption and intermediate goods

(Estache & Fay, 2007) endogeneity is bound to exist.


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1.4. Infrastructure and Social DevelopmentInfrastructure has been found to have disproportionate effect on the income and welfare

of the individuals. Infrastructure raises the values of assets that individuals hold (land,human capital, houses etc) and lowers the transaction costs (transportation, logistics,

information collection etc) incurred to access a market, both for inputs and outputs. The

values of assets in less developed area are much lower than those in comparatively

developed area. Similarly, the transaction costs are much higher for less developed area

as compared to those of developed area. Hence, any infrastructure development in less

developed area would take them closer to being competitive to the developed areas.

In order words, development of infrastructure in less developed areas would provide the

individuals residing in these areas a better chance to offer goods and services at a

competitive rate. Most of the people residing in the less developed areas are those with

lower income. Hence, infrastructure provisioning would provide a tool to overcome

poverty.

Social infrastructure includes development of rural roads, education, health facility, and

market developments i.e. both economic and social infrastructure. In India, over the last

decade, economic infrastructure in less developed areas has also attracted private capital

apart from government funding. However, social infrastructure has been provided mainly

by the government.

In 2004, Government of India also initiated its effort to attract private capital to social

infrastructure, both in urban and rural areas. While, the initiative has met with some

successes in urban areas, rural areas are yet to see many such projects with private

investments.


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1.5. Characteristics of InfrastructureInfrastructure is associated with a few unique characteristics. Some of these were also

referred while defining infrastructure. These are:

i. Economies of scale and scopeii. Essentiality of infrastructural servicesiii. Usage of a key national resourceiv. Benefits from users to non-usersv. Strong public interestvi. Non-exportabilityvii.Non-excludabilityviii.Non-subtractability

Economies of scale refer to reduction in unit cost as the size of a facility or scale

increases ie., as the output increases. It relates to supply side changes ie., increase or

decrease in the scale of production of a single product type. Economies of scope relate to

demand-side changes eg., change in scope of marketing/branding of different types of

products. In the context of infrastructure, economies of scale and scope are important

because it needs high upfront investment and has decreasing marginal cost. This tends to

create natural monopolies and hence necessitates regulation.

Along with the asset created (physical infrastructure), service is equally essential. In

economic infrastructure, the service part of infrastructure is essential to realize the

benefits of the infrastructure. For example, transport physical infrastructure (such as road,

railway track etc) has no value without transport services. However, in the total sense of

costs, the cost of service is relatively less in economic infrastructure as compared to that

of social infrastructure. This is true even in say the health sector, where we talk of hi-techhospitals with high investments. The service part of managing the assets does not receive

the same importance as the service cost of providing medical facilities to a patient.

Another important factor of infrastructure is that it typically uses a very key national

resource, which again brings it into the realm of requiring regulation. If we talk of ports,


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an important national resource, which we cannot easily throw away, is coastline. We

really need to worry about what is the best use of coastline. If we consider telecom, we

talk about the spectrum and the greatest tussle today in telecom development, and

telecom and broadcasting is that there is a convergence between these two - and all the

issues are tied around spectrum allocation. If we talk of road or rail, the key national

resource is not just land but it is contiguous land. The need for contiguous land brings a

host of issues/complexities with it. So, there are issues, which may go beyond viewing

things at an enterprise level.

We have the benefits of infrastructure - partly because it is overhead - being enjoyed by

not only the direct users but also by non-users. In fact, when arguments are made that

any infrastructure like say urban transport can never pay for itself, what is implied is that

direct user charges cannot probably pay for it, given the utility derived by the direct

users. However, given the benefits to non-users, urban transport as an activity is

economically viable for society at large and that is the reason why cities and societies

continue to provide it. A crucial challenge therefore is how to channelize funds from the

non-user, so that it goes back appropriately into the revenues and development of that

infrastructure. The above factors also bring in an element ofstrongpublic interest.

Typically infrastructure is created and consumed locally, and hence it is non-exportable.

However, telecom is now exportable with satellites, cell phones etc. In fact today, India

can and has in many ways taken advantage of what we claim as the cheaper labor

economy where banks of people in Bangalore, Delhi and Gurgaon provide key telephone

services (call center services) to companies abroad. So, in a sense, because of this

connectivity, there is exportability. The same is becoming true in power sector to some

extent.

Exclusion is important because of the idea of pricing to realize direct user charges.

Infrastructure services where direct user charges are to be levied, exclusivity becomes the

tool to coerce users to pay for the facility.


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By non-subtractability, we imply that infrastructure does not get reduced in any manner

with consumption. This is the fundamental cause for decreasing marginal costs. It also

helps in bringing in user charges. Wherever, subtractability operates, all the users may

not be charged uniformly as the level of consumption would be different for different

users.

As it appears from the above discussion, infrastructure is a complex area to work with

where public interest is strongly present. Hence, the roles of various actors in

provisioning of infrastructure become very critical. We deal with this in the next

subsection.

1.6. Infrastructure and Possible Roles of ActorsIn provisioning of infrastructure various actors may be involved. Figure 1-2 shows the

activities related to infrastructure provisioning (policy, development and delivery, and

regulation and checks) and the players (bureaucracy, political system, think tank, media,

judiciary, private developer, financial institutions and insurers, and users) possible

involvement in provisioning of the infrastructure facility.

Figure 1-2: Actors and Possible Activities in Infrastructure

Policy

Development and Delivery

Regulation and Checks

More Involved

Less Involved

Not Involved

Actors

ActivitiesBureaucracy Political System Think Tanks UsersMedia Judiciary Private Developer

Financial Institutions

and Insurers

The roles of these actors have been classified as more involved, less involved and not

involved. Bureaucracy may get involved in all the three levels of activities i.e. in policy

making, development and delivery, and regulation and checks. In policy making, the

bureaucracy is involved along with the elected representatives. They provide the requisite

information regarding existing infrastructure, possible impact studies, resource

requirements, and development across the world to the elected representatives to assist


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them in making the policy. Once the policy is declared, the operationalization of the

policy is also carried out by the bureaucracy. They decide on the delivery mechanism.

They are also involved in monitoring the progress and keeping a tab on the key indicators

of progress.

Political system, as discussed above, is involved in policy making and to a less extent

involved in development and delivery. Their involvement in development and delivery is

restricted to providing guidelines or monitoring broad key indicators. They are

insignificantly involved in regulation and checks.

Think tanks may be involved by the bureaucracy and political system in assisting them to

formulate policies. The think tank provides the domain expertise, knowledge recent

developments in the sector all over the world, and educated guess on the resource

requirement and impacts of the policy under consideration. Thus, they are capable of

contributing significantly whenever they are involved in policy making process. Their

involvements in the other two activities are insignificant.

Media creates public opinion and highlights certain aspects of the proposed infrastructure

and services to influence the policy making process and delivery mechanism. Their reach

to public allows them to contribute these two activities. They are involved deeply in

regulation and check processes where they can highlight and create mass movements

against any activity which may not be directly expected from policy or delivery

decisions.

Involvement of judiciary is limited to regulation and check. They act as a deterrent to

those who may violate the policy or proposed delivery mechanism for the provisioning of

the infrastructure. They are not involved in policy and delivery of infrastructure.

However, in rare cases, judiciary has shown active role in policy and delivery

mechanism, which would be discussed later in the chapter on role of judiciary in

infrastructure.


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Private developer is involved in development and delivery as government machinery

alone cannot delivery all the infrastructure. They are involved through a spectrum of

relationships ranging from simple contract to build own and operate level. They influence

the policy and regulation/check to a lesser extent as compared to other actors.

Financial institutions and insurers are also involved in development and delivery. They

are involved as the financiers of the project as they provide debt and equity to the project.

To a less extent, they influence policy and regulation & check stages by guiding the

financing instruments and risk sharing mechanisms.

Users are strongly involved in the delivery and regulation & check stages. They are the

primary beneficiaries of the project and hence they need to be involved in the delivery

process. They also create checking mechanisms in the system to ensure efficient and

effective delivery of infrastructure and services. To some extent, they are also involved in

the policy making as they evolve the political system and also select the policy makers.

While we have identified the roles which may be played by each of the actors in

infrastructure, we would discuss what may be the appropriate roles for each of them in

coming chapters.

While the above sections have brought out the importance of infrastructure, public policy

aspect of provisioning of infrastructure, and role of various players in infrastructure, the

next section discusses the important challenges in provisioning of infrastructure and

services on a sustained basis.

1.7. Provisioning of Infrastructure and ServicesInfrastructure has traditionally been provided by the government (public sector) in India.

The government provisioning of infrastructure and services have suffered from

inefficiencies in asset creation and poor service delivery. Demand has always been higher

than the supply. Given the strong public interest, large positive externality, non


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exportable nature, and inability of users to be able to pay had forced government to

provide infrastructure on its own. However, over the last decade, private sector has

participated in asset creation and service delivery in a big way. Road sector is a classic

example of the successful participation of private sector.

As per the 11th

five year plan, total investment in infrastructure has been envisaged to be

of the order of 494.4 billion USD (Table 1-2). It has been envisaged that private sector

participation would be encouraged to meet this investment demand. Private sector would

not only bring in efficiency and effectiveness but would also force demand side

correction by charging users to pay for the facility and services.

Table 1-2: Investment Envisaged in 11th Five Year Plan

Item \ Year 2007-08 2008-09 2009-10 2010-11 2011-12

Roads 513,520 543,180 587,290 679,010 795,160Railways 332,070 399,640 486,260 597,380 764,660

Ports 96,910 117,400 142,710 173,970 208,410Airports 62,230 64,590 68,140 72,960 79,560

Power (Electricity) 742,050 928,290 1,165,410 1,469,140 1,860,380

Telecom 330,750 398,340 502,930 634,080 803,900

Irrigation 270,020 338,390 426,250 539,460 657,180

Water supply and sanitation 258,400 311,100 378,680 465,550 577,540

Storage 37,770 40,980 44,460 48,240 52,340

Gas 29,840 34,540 40,050 46,510 54,070Total GCF in 11th Plan (15%spillover is assumed)

Rs 20,271,690 (US $494.43billion) @2006-07 prices

Source: www.infrastructure.gov.in

Government provisioning has also been supported by bringing in the merit good2

argument. Most of these infrastructure have some element of merit good nature and it is

not preferable to exclude anyone from these services and hence it becomes the

responsibility of the government to provide or pay on behalf of the users of these

facilities and services.

2 Pure public goods are are non-rival in consumption and non-excludable e.g. defense services of a country,clean air etc. There are also goods where exludability is possible by enforcing user fee or any othermechanism, but it is not preferable to do so e.g. education and health services.


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Private sector involvement brings in many challenges due to the nature of infrastructure

discussed in this chapter earlier. The natural monopoly status and demand-supply gap

makes infrastructure a good instrument for earning super natural profit. To save users

from being ripped, proper regulatory mechanism needs to be put in place.

At this point it is also important to recognize that even among the private players, interest

of those in asset creation business lies in the first few years (during construction phase)

while the service providers interest lies in longer period starting with completed assets.

The asset creator gets paid within the period of construction and the quantum is generally

much higher than those received during the service provisioning state. Thus the challenge

is also to shift the balance towards service provisioning so that the users are benefited the

most.

Chapter Summary

In this chapter, we discussed various definitions of infrastructure. At the conceptual level,

we defined infrastructure as the basic physical and/or organizational structure required

for the smooth functioning of an economy, which facilitate production of goods and

services. These goods and services have economic and/or social value eg., roads, railway,

electricity, water, etc. At the operational level, we discussed different definitions

proposed by various committees constituted in the past.

We also discussed the important characteristics of infrastructure which include

economies of scale and scope, essentiality of infrastructural services, usage of key

national resources, benefits from users to non-users, strong public interest, non-

exportability, non-excludability, and non-subtractability. While discussing these

characteristics, we learnt the complexities/challenges posed in provisioning of the

infrastructure due to above mentioned characteristics. We also discussed the roles of

different actors in conceptualizing and provisioning of infrastructure.


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Glossary

CSO: Central Statistics Organization

GDP: Gross Domestic Product

IRDA: Insurance Regulatory and Development Authority

MOSPI: Ministry of Statistics and Program Implementation

RBI: Reserve Bank of India

SEZ: Special Economic Zone

T & D: Transmission and Distribution

USD: US Dollar

Objective Questions

1. Which one of the following is not a key characteristics of infrastructure(a)economies of scale and scope, (b) non-subtractability, (c) use of a key resource,(d) non-exportability to a large extent

2. Pricing of infrastructure is possible because of(a)economies of scale, (b) subtractability, (c) rival consumption, (d) excludability

3. Users may not be charged uniformly in cases where(a)subtractability of infrastructure applies, (b) economies of scale works, (c)

economies of scope works, (d) high externality exists

4. Infrastructure is also referred as(a)Social underhead capital, (b) Personal Overhead Capital, (c) Social Overhead

Capital, (d) Social Capital

5. As per the definition of the Word Bank, which of the following is not aninfrastructure

(a) Irrigation, (b) storage, (c) gas distribution, (d) (a), (b), and (c)


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Exercise

1. Compare the definition of infrastructure adopted by RBI and IT Department overthe last ten years. Also, identify the reasons for including/excluding certain

sectors based on news analysis, RBI circulars, IT circulars, planning commission

documents, and any other source that you may come across.

2. Conceive any infrastructure around you that you think is essential. Detail out thecharacteristics and challenges of provisioning the infrastructure. Also, discuss the

roles of various actors in the conceptualization and provisioning of the same.

References

Aschauer David A, 1989. Back of the G-7 pack: public investment and productivity

growth in the Group of Seven, Working Paper Series, Macroeconomic Issues 89-13,

Federal Reserve Bank of Chicago.

Arrow, Kenneth J & Kurz, Mordecai, 1970. "Optimal Growth with Irreversible

Investment in a Ramsey Model," Econometrica, Econometric Society, vol. 38(2), pages

331-44

Briceo, C., A. Estache, and N. Shafik. 2004. Infrastructure Services In Developing

Countries: Access, Quality, Costs and Policy Reform. The World Bank, Washington, DC.

Chin M S (2002). Modelling Social Infrastructure and Growth. Retrieved on October 10,

2010 from http://www.rbnz.govt.nz/research/workshops/112040/4apr02chin.pdf

Choate P and Walter S (1981). America in Ruins: the Decaying Infrastructure. Duke

Press. Council of State Planning Agencies: Washington, D.C.

Estache, Antonio & Fay, Marianne, 2007. Current Debates on Infrastructure Policy,

Policy Research Working Paper Series 4410, The World Bank


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FTSE: The Index Company, Received on August 20, 2010 from www.ftse.com

Hall, R E and Jones C I (1999). Why Do some Countries Produce so Much More Output

Per Worker Than Others? Quarterly Journal of Economics, 114, pp 83-116.

Morrow Richard (2008). The Top 10: Asian Infrastructure Needs a Helping Hand. Asia

Money. Available at http://www.asiamoney.com/Article/2055632/Channel/18878/THE-

TOP-10-Asian-infrastructure-needs-a-helping-hand.html

Online Etymology Dictionary, Retrieved on January 5, 2010 from etymonline.com

Romp, W., and J. de Haan. 2005. Public Capital and Economic Growth: A Critical

Survey. EIB Papers 10(1). European Investment Bank, Luxemburg.Available at:

http://www.eib.org/infocentre/publications/eibpapersvolume10.n12005.htm.

Secretariat for Infrastructure, Planning Commission, Retrieved on March 11, 2010 from

www.infrastructure.gov.in

Chapter 1_Introduction to Infrastructure

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