Why are business still handicapped by inadequate infrastructure services despite government increasing spending on the same?
Business sector is one of the most income-generating factors that lead to country's growth and development. Most of the countries that have growing businesses have their infrastructure sector grow together with their pace as well. Unfortunately, this is not happening in our country. Though our economy is considered as fast-rising in Asia, our business and infrastructure sector find it hard to them to boost their projects that might help our economy to reach greater heights as well.
The reason why the business sector is handicapped with inadequate infrastructure services because of some factors:
Location - most of our business centers are in the mainland and the tendency to build huge infrastructure projects are not feasible as to this date because of overpopulation in the area. Business cannot expand their scope because most part of these business areas are still occupied by residential lands which we cannot demolish. If a land is intended only for commercial spaces without any residential allotments, it will still not lead to greater income because no one will patronize the products. Because of this scenario, many proposals that suggest urbanization of rural places would be a game-changer in the business sector, but few investors are interested in slow-moving return of investment due to location and few consumers available in the area.Lack of investors - since rural places have varied lifestyles, investors find it hard to gain market in those areas because of difference in priorities. That's why even though the market is stiff and tight, most investors tend to take the risk on placing their businesses in urban places rather than setting it up in rural areas without any assurance of return of investment. Difference in social groups - the most awesome infrastructure in our country can only be experienced by people who belong in the middle and higher classes of our society. Since they only cater to a specific group of community, the larger and greater group cannot afford to visit and patronize their businesses. That is why, most of the consumers shops at stores they can afford. If large companies would tie up and help small and starting businesses in developing a business world where social class is disregarded, then I think our economy would grow fast. Corruption - this is in relation with the existing policies in the planning and implementation phase of any infrastructural project where people of both parties agreed upon something unconstitutional. There are scenarios where businesses disregard government policies just to continue their operations. Other companies uses substandard materials in their infrastructure projects to produce weak facilities. With this, there will be a tendency that the government will need to repair it and the same contractors might get the same project again. There are more examples of corruption in the government and private sectors which pulls our economy down instead of giving it better opportunities for development.
These are just some of the reasons. For more information regarding this topic, you may click the link below:
Who are the Underpriviledge sector on the society
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