Effects of infrastructure development
We call the impact that infrastructure development has on the society the “effect of infrastructure development”.
The effects of infrastructure development can be divided into two types: flow effects and stock effects.
Flow effect
The flow effect temporarily expands the economy as a whole by creating derivative economic activities such as production, employment, and consumption through public investment projects.
To explain clearly
1⃣Production activities are created when the country, that is, the government, builds infrastructure.
2⃣ Infrastructure project create employment opportunities.
3⃣By working, people increase their income and consumption.
As a result, it will lead to the revitalization of the economy as a whole.
It's easy to understand if you think about it like the following image.
Stock effect
The stock effect is a benefit that can be reaped and over the medium to long term after the infrastructure development due to the function of the developed social capital.
Specifically, the stock effect includes.
‣ “Safety and peace of mind effects” such as improved earthquake resistance and reduced risk of flood damage
‣ Improved quality of life” such as improvement of living environments and improvement of amenities
‣"Improvement productivity effect" by shortening travel time.
These have the effect of increasing the basic productivity of the base of society.
●Safety and peace of mind effect
The safety and peace of mind effect is the effect of improving safety against disasters such as earthquakes, tsunamis, and floods.
Japan is said to have one of the highest rates of earthquakes in the world.
In recent years, there have been abnormal weather such as torrential downpours and typhoons, and it goes without saying that countermeasures need to be taken against them.
●Improved quality of life effect
This is the effect of improving the quality of life by improving the conveniences and standards of transportation services.
To give an example, by maintaining water supply and sewerage to improve water quality, and keep the waterfront is kept clean.
This will reduce the number of patients with illnesses such as infectious diseases.
●Improvement productivity effect
This is the effect of increased capital investments, productivity, and economic growth because of increased supply and demand, as well as improvements in transportation and distribution of goods.
