CONCEPT AND CHARACTERISTIC OF INFRASTRUCTURE

CONCEPT AND CHARACTERISTIC OF INFRASTRUCTURE

Infrastructure network is a very social-economic climate created by the institutes (public or private) that serve as conducts of trade and investment.

The roles of infrastructure in the context of integration are transformative, helping to change resources into outputs or to enhance trade by removing barriers.

Therefore, an improvement in a country’s infrastructure is one of the key factors affecting the long term growth of such a country. The linkages between infrastructures and economic growth are varied and complex.
Infrastructures does not only affect production and consumption directly, it also creates many direct and indirect externalities. It involves large flow of expenditure, thereby creating additional employment. Equally, infrastructure can have a significant impact on output, income, employment, international trade, and quality of life.

Nubi (2002) describe infrastructure as the aggregate of all facilities that allow a city to function effectively it is also seen as a wide range of economic and social facilities crucial to creating an enabling environment for economic growth and enhances quality of life.

This includes housing, electricity, pipe-borne, water, drainage, waste disposal, roads, sewage, health, education, telecommunication and institutional structures like police station fire fighting station, banks and post offices e.t.c. infrastructure is the large scale public services or systems, service and facilities of a country or region that are necessary for economic activity. Including power and water supplies, public transportation, roads and schools.

Donald (1974) also defines infrastructures as the physical structures and facilities that are developed or acquired by public agencies to enhance government functions and provides water, power, waste disposal, transportation or similar services to facilitate the achievement of common social and economic objectives.

Akujuru (2000) identified the following characteristics of infrastructures.

• – It enjoys considerable economic of scales which result in monopolies.
  – It requires a large sum of investment, this perhaps justifies the reason why the citizens usually look forward to their government for the provision of the facilities.
  – It has intermediate input characteristics.
  –  It posses important network effects.
  – It posses difficulties in cost recovery.