It is important in these discussions to make one’s premises clear. Mine are as follows:
By infrastructure I mean long-lived physical assets that provide the basis or physical support on which most economic and social activities rely. While the scope of this definition can obviously vary, I use the term to refer to the conventional utility industries – such as communications, electricity, transport (including rail links, ports and airports), water and sewerage services – as well as to the road network.
There is nothing magical about infrastructure investment. Ultimately, it is a cost like any other, even though the stream of benefits generated by that investment is exceptionally durable. There is no virtue in having more infrastructure rather than less; rather, the crucial issue is that the costs associated with infrastructure be incurred efficiently, that is, in a way that maximises the net benefits they provide to society. ...more.