Global Supply Chain Management
Infrastructure refers to technical and organisational structures such as roads, bridges, and telecommunication that support a given society. Infrastructure is a key component in a country’s investment climate as it promotes trade and integration both in the local and world markets. It is also key in human development including the delivery of social services such as health and education. Despite the roles of infrastructure in nation-building, developing countries lag behind in the provision of effective infrastructures due to various challenges.
The high cost of infrastructure development is one of the major challenges in developing countries, and this is attributed to corruption. Infrastructure development in developing countries has found itself in the present financial mess because of various procurement indiscipline issues encountered. Some of the elected leaders who are mandated to protect the people’s interests in infrastructure development often see the opportunity to make money. As a result, most infrastructural projects or structures currently remain unfinished or are ineffective due to financial constraints (Bhattacharya, Romani, & Stern, 2012).
Trade is a key factor in infrastructural development, and the lack of training and motivation in developing countries scares away most people from engaging in trading activities. Most youths in developing countries are involved in unproductive activities instead of getting involved in trading and other productive activities. The lack of involvement in trade and other productive economic activities is attributed to ineffective training and the lack of motivation. Consequently, many regions in developing countries remain underdeveloped (Yilema & Gianoli, 2018).
Overall, infrastructure is a key component in society as it promotes trade, integration, and human development. However, developing nations lag behind due to infrastructural challenges such as the high cost of infrastructure development brought about by corruption. Trade is also a key factor in infrastructure although most people are not engaged in trading activities due to lack of proper training and motivation in developing nations.
Bhattacharya, A., Romani, M., & Stern, N. (2012, June). Infrastructure for development: meeting the challenge. In Centre for Climate Change Economics and Policy. Retrieved from http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2014/02/PP-infrastructure-for-development-meeting-the-challenge.pdf
Yilema, M. G., & Gianoli, A. (2018). Infrastructure Governance: Causes for The Poor Sectoral Coordination Among Infrastructure Sectors of Addis Ababa. Cities, 83, 165-172. Retrieved from https://www.sciencedirect.com/science/article/pii/S0264275117310508