Chapter 9: Infrastructure, Industry and Innovation Flashcards
3 Types of Infrastructure
soft infrastructure: institutions that support the social services in a community (ex. healthcare system)
Hard infrastructure: large physical systems needed for modern industrialized economy (ex. roads)
Critical infrastructure: assets, systems and networks that are essential for economy, health and safety (ex. communications systems)
What is the trend for infrastructure investment in the Global North?
failing to keep pace with the current and expanding needs, and investment in infrastructure is greatly inadequate. Most of our infrastructure was built based on the 1960-70s. It is currently past its ‘due date’ as to what it was originally planned for
What is the trend for infrastructure investment in the Global South?
-Transition from public to private: Because of the large sums of money required to invest in infrastructure there is a shift from public to private. When public invests, it is for the public and used by the public. When it is private, they need to make profit.
-Quality, quantity and accessibility of infrastructure in low-income countries lags behind that in the Global North, but there is increasing investment.
what is the privatization trend in infrastructure?
Rise in public-private partnerships (PPPs) where private companies provide funding. Issue is companies need revenue and will focus on higher-income, non-remote locations who can afford it and have high traffic.
what is Research and Development
activities that companies undertake to innovate and introduce new products and services
3 types of Research and Development
Basic: research for the sake of research
Applied: research done with a specific goal, use or product in mind
Experimental: systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge
Define sustainable industrial development
Industrial development that is linked to formal job markets with health, safety, and environmental standards.
3 issues in regard to infrastructure
-privatization: shifts away from public
-transportation: poor quality/non-existent roads
-information and communication: many areas lack internet/cellular access
Define resilience
the capacity to plan for, respond to, and recover from stressors and shocks
Solutions to infrastructure issues
three
-expand and improve transportation infrastructure (ex. roads and bridges in global south)
-build resilient infrastructure (ex resilience hubs)
-use creative financial services (ex. microcredits)
What is microfinance (microcredits) and what are some critiques?
three critiques
defined: a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services (ex. M-PESA)
issues:
-normalizes debt
-poverty seen as purely financial issue
-no clear evidence it empowers women
Free Space
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