Thursday, 21 February 2013

Strategic Infrastructure Investments Are Needed in Canada

Investment in strategic infrastructure will make the Canadian economy more productive. Governments shouldn't be looking at investing in infrastructure as something that they’re forced to do, but as something they should. Infrastructure investment is an investment in which boosts productivity and increases the rate of economic growth in the long-term. If nations start to neglect the proper infrastructure investments, the economic performance within global trade will be impacted. The Canadian standard of living is going to be at risk. Governments should not hesitate to maintain a high level of investment in public infrastructure. The real value of infrastructure investment is not what it achieves in the short term, but what it achieves across the long-term.

The Conference Board of Canada acknowledged productivity as the most important factor of a nation’s per capita income over the long-term. The gap in Canada-U.S. productivity growth since the 1990s was basically due to Canada investing less in public infrastructure compared to the U.S. The report says Canada fares poorly with most of its important competitors. Canadian officials and investors need to begin investing if they expect to take advantage of investment opportunities in emerging economies, particularly from the quick growth occurring in Asia.

Canada’s quality of living is closely connected with their ability to trade. Securing new markets for Canada can only occur if they have the infrastructure to get products to those markets. This northern nation doesn't want to be left behind because they fail to meet accommodations. The government, as well as private investors, must make good investments to ensure that the quality of life is maintained and that there is infrastructure to support competitive business opportunities in the future. With that being said, analysts have identified a strong correlation between strategic infrastructure investments and maintaining the Canadian quality of life. Thus, government officials must make the correct investments to ensure that quality progresses.

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