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The infrastructure system to enhance economic development

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  • Gian Maria Gros-Pietro

Abstract

The article considers the necessity to accelerate the development of our country, that strictly depends on the evolution of productivity, and therefore of competitiveness. The competitiveness of a territory mainly relies on the incidence of the logistic cost functions over the gross domestic product. In Italy the greater obstacle to the development of a modern logistic system is represented by the deficit in the transport system infrastructures (highways, railroads, airports, ports). The article focuses on the insufficiency/deficiency of the existing national highway system and underlines the changes that are required to increase its efficiency level. Firstly, a reorganization of the construction enterprises in order to meet the international and European dimension becomes a priority to stimulate the building costs reduction. Secondly, positive developments could be encouraged by reducing the rigidity and the obsolescence of the public procurements rules that do not stimulate the enterprises technical efficiency. Thirdly, a reduction of the cost of capital could contribute to overcome the national transport infrastructures deficit. Fourthly, a regulation of the highway licenses in a transparent and predictable way could be advantageous for the control of usage charges, widening the basket investments that turns out to be economically sustainable at market conditions. Finally, the recourse to market mechanisms, instead of State's direct or indirect infrastructures' management, facilitates the quality of services monitoring and favors consumers as showed by the performances of "Autostrade S.p.A." after its privatization.

Suggested Citation

  • Gian Maria Gros-Pietro, 2007. "The infrastructure system to enhance economic development," L'industria, Società editrice il Mulino, issue 1, pages 229-254.
  • Handle: RePEc:mul:j0hje1:doi:10.1430/24364:y:2007:i:1:p:229-254
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