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Sound infrastructure drives economic growth

Sustainable economic development is not possible without a properly functioning and accessible infrastructure. Good infrastructure is vital for the functioning of an economy. Passable roads increase food producers’ access to local markets for example. Water purification is important for developing small and medium sized industrial manufacturers and exports of local products and imports of raw materials depend on accessible seaports and airports. A constant, adequate energy supply is also often a prerequisite for the success of companies both large and small. Infrastructure investment can boost economic growth by 2.5 percentage points.

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However, demand for infrastructure far outstrips the financial resources available. A lack of investment-worthy projects can also hamper infrastructure like roads and telecoms for example. Many developing countries do not have the institutional capacity and resources to develop projects, and political risks also often deter potential investors.

The Scottish Government have recognised the need to improve its current transport infrastructure and have currently undertaken a commitment to invest in Scotland’s trunk road infrastructure and upgrade the country’s existing A8 to motorway standard.

Video footage released by Transport Scotland captures a new bridge being lifted into place on the M8 M73 M74 Motorway Improvements Project.  Lagan Construction Group are currently working on a Joint Venture with Ferrovial on behalf of Scottish Roads Partnership (SRP) as part of a £500m project to upgrade Scotland’s motorway network.

This coincides with the English government’s announcement in 2013 of £15bn road investment in England. The projects include the tunnel to tackle a bottleneck at Stonehenge on the A303 and improved M25 junctions. They are designed to tackle congestion and fix some of the most notorious trouble spots on the country’s roads.

This article highlights the need for up-to-date infrastructure to encourage businesses to locate to the city, ease of access not only for their customers but also with those businesses they do business with.

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