Frederic Michel Verdier: Productive infrastructure

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Frederic Michel Verdier On Improving Infrastructure Delivery will Boost Productivity 




Welcome to the Frederic Michel-Verdier blog. Frederic Michel-Verdier is an infrastructure veteran. It is a core responsibility of governments to provide infrastructure because infrastructure has the ability to change lives. Productive infrastructure is important to economic growth and job creation. It also helps us travel, communicate, and prosper. Higher productivity means our businesses are more efficient and competitive on a global stage, with a flow-on effect to increased household incomes. From now through 2030, the world will need to spend at least $57 trillion to build the ports, power plants, rails, roads, telecommunications, water systems, and other infrastructure that the global economy needs.Here are the reasons why improving infrastructure will boost productivity.
Frederic Michel Verdier

PRODUCTIVITY AND COST EFFECTS OF INFRASTRUCTURE

  • In developing countries with low stocks of infrastructural assets, the marginal productivity effects of public capital are likely to be substantial

COMPLEMENTARITY EFFECT ON PRIVATE INVESTMENT

  • By raising the marginal productivity of private inputs, public infrastructure increases the perceived rate of return on, and hence the demand for, physical capital by the private sector
  • Countries with more and better infrastructure are likely to attract more investments
  • The positive effect of infrastructure has been found to be quite robust to time periods and countries considered

INFRASTRUCTURE AND HEALTH

  • Better transportation networks allow for easier access to health care
  • Access to electricity is essential for the functioning of hospitals and other health care facilities
  • Access to safe water and sanitation reduces malnutrition and infant mortality
Efficient infrastructure is a necessary condition for obtaining the benefits of globalization and regional integration.

Frederic Michel Verdier has over 15 years of experience in large scale Equity Investments and Asset Management of Global Infrastructure assets. Find out more about Frederic Michel Verdier here. Alternatively, you can read the Frederic Michel Verdier news section for the latest news from the Infrastructure investment industry here. 

Watch Frederic Michel Verdier video here.

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