Th4.3: IS - Infrastructure Development

Question 1

What do interventionists believe?

Answer 1

the government should provide these systems whilst a market-based system would be for the private sector to provide them

Question 2

What does infrastructure tend to suffer from?

Answer 2

the free rider problem and has very high capital costs, making it unlikely the private sector will help

Question 3

What are some problems with infrastructure?

Answer 3

the government may not have the funds and it is argued they may be inefficient. infrastructure projects are often associated with bribery and corruption and cause environmental damage

Question 4

What do some argue is better than large scale infrastructure?

Answer 4

intermediate technology which uses local materials and can be fixed locally