Importance of the 2015 Infrastructure Fund Programs

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IV. INFRASTRUCTURE FUND PROGRAMS AND BUDGET FOR 2015

4.1. Importance of the 2015 Infrastructure Fund Programs

Infrastructure growth and services play a major role in economic growth and poverty reduction as well as enhancing human security through ensuring food security, health and environmental security. As in previous years, the implementation of the IF programs in 2015 will certainly have significant social and economic impacts on the community’s life, both direct and indirect. For instance, rehabilitation and construction of new access road and bridge projects apart from creating short-term employment opportunities, these projects also provided and helped maintain access to places that would otherwise be isolated; better road and bridges also expedite people’s access to basic services such as health care and education services, enhancing agricultural productivity, reducing transportation costs and generating more jobs and income. Agriculture is a strategic sector for future economic development with a significant number of households involved in this sector. Infrastructure development in agriculture will increase food production and availability, improving distribution and increase food security directly through enhancing nutrition and indirectly by increasing incomes. The national electrification program benefited many and there is potential for more social and economic benefits from increased availability and duration of the supply of electricity. Experience in other countries shows that lack of electricity inhibits access to information from the outside world and limits the use of modern educational tools, such as computers and radios. Improvements in sanitation and water supply are necessary throughout the country to provide safe water and better sanitation facilities. This will reduce illness and raise the quality of life. Development of the southern coast areas, which are endowed with a wide variety of natural resources, is expected to spearhead development, create employment, improve living conditions, generate various industries and stimulate the economy as well as attracting investment. Closely related to this would be the programs for Spatial Design Planning of the northern districts, highland and southern coast areas. Improvements in the public buildings sector would provide better working facilities and should enhance quality of public services. In connection to this, human resources are key to development. Development of educational infrastructure will increase literacy that will produce skilled human resources. Various empirical studies 1 show that there is a clear link between education and productivity. It has also been noted that to avoid the poverty trap and for the efficient adoption of technologies, accumulation of human capital is crucial. Similarly, the provision of health facilities will result in healthy human resources, which will contribute to national economic development. In this regard, improvement of the telecommunication system is imperative for the Government in terms of coordination between agencies at the central and 1 For an overview and references see: Asian Development Bank, A Survey on the Relationship between Education and Growth with Implications for Developing Asia, 2010 Página 13 de 116 regional levels as well as for the public. Through its Informatics program, the Government is in the process of developing a national communication platform for data, voice and video services to all district capitals. The Government also recognises the importance of the need to provide community housing and other support facilities at locations across the country. 4.2. Summary of the 2015 IF Budget by Program 4.2.1. Agriculture Program