Question

What changes are observed in the composition of infrastructure requirements as the economy develops?

Answer 1

In any country, as the income rises, the composition of infrastructure requirements changes significantly. For low-income countries, basic infrastructure services like irrigation, transport, and power are the most important. As economies develop, most of their basic consumption demands are met. The share of agriculture in the economy shrink and more service-related infrastructure is required. That is why, the share of power, hotel, and banking, telecommunication, etc is greater in high-income countries.