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{{Public Infrastructure}}

'''Infrastructure''' is basic physical and [[organization]]al structures needed for the operation of a [[society]] or [[Business|enterprise]],<ref>''Infrastructure'', Online Compact Oxford English Dictionary, http://www.askoxford.com/concise_oed/infrastructure (accessed January 17, 2009)</ref> or the services and facilities necessary for an [[economy]] to function.<ref>{{cite book | last = Sullivan | first = arthur | authorlink = Arthur O' Sullivan | coauthors = Steven M. Sheffrin | title = Economics: Principles in action | publisher = Pearson Prentice Hall | year = 2003 | location = Upper Saddle River, New Jersey 07458 | pages = 474 | url = http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4 | doi = | id = | isbn = 0-13-063085-3}}</ref> It can be generally defined as the set of interconnected structural elements that provide framework supporting an entire structure of development. It is an important term for judging a country or region's development.

The term typically refers to the technical structures that support a society, such as [[road]]s, [[water supply]], [[sewage|sewers]], [[electrical grid]]s, [[telecommunication]]s, and so forth, and can be defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions."<ref>{{cite journal|last=Fulmer|first=Jeffrey|title=What in the world is infrastructure?|journal=PEI Infrastructure Investor|year=2009|issue=July/August|pages=30–32}}</ref>

Viewed functionally, infrastructure ''facilitates'' the [[Manufacturing|production]] of [[Good (economics)|good]]s and [[Service (economics)|service]]s, and also the distribution of finished products /entry/infrastructure (anecessary for the support, redeployment, and operation of military forces.<ref>''Infrastructure'', JP1-02, Department of Defense Dictionary of Military and Associated Terms, p. 260, 12 April 2001 (rev. 31 August 2005) http://www.dtic.mil/cgi-bin/GetTRDoc?AD=ADA439918&Location=U2&doc=GetTRDoc.pdf(accessed January 17, 2009)</ref>

== History of the term ==
According to the ''[[Online Etymology Dictionary]]'',<ref>Online Etymology Dictionary. Douglas Harper, Historian. http://dictionary.reference.com/browse/infrastructure (accessed: April 24, 2008)</ref> the word infrastructure has been used in English since at least 1927, originally meaning "The installations that form the basis for any operation or system".<ref name="opendb.net">http://www.opendb.net/element/19099.php</ref>

Other sources, such as the ''[[Oxford English Dictionary]]'', trace the word's origins to earlier usage, originally applied in a [[military]] sense. The word was imported from [[French language|French]], where it means ''[[subgrade]]'', the native material underneath a constructed pavement or railway. The word is a combination of the [[Latin]] prefix "infra", meaning "below", and "structure". The military use of the term achieved currency in the United States after the formation of [[NATO]] in the 1940s, and was then adopted by [[Urban planning|urban planners]] in its modern civilian sense by 1970.<ref>''The Etymology of Infrastructure and the Infrastructure of the Internet'', Stephen Lewis on his blog ''Hag Pak Sak'', posted September 22, 2008. [http://hakpaksak.wordpress.com/2008/09/22/the-etymology-of-infrastructure-and-the-infrastructure-of-the-internet/] (accessed: January 17, 2008)</ref>

The term came to prominence in the [[United States]] in the 1980s following the publication of ''America in Ruins'',<ref>[http://www.amazon.com/dp/0822305542 ''America in Ruins'', Choate and Walter, 1981]</ref> which initiated a public-policy discussion of the nation’s "infrastructure crisis", purported to be caused by decades of inadequate investment and poor maintenance of [[public works]]. This crisis discussion as contributed to the increase in infrastructure [[asset management]] and maintenance planning in the US.

That public-policy discussion was hampered by lack of a precise definition for infrastructure. A [[United States National Research Council|US National Research Council]] panel sought to clarify the situation by adopting the term "public works infrastructure", referring to:
<blockquote>
"...&nbsp;both specific functional modes – highways, streets, roads, and bridges; mass transit; airports and airways; water supply and water resources; wastewater management; solid-waste treatment and disposal; electric power generation and transmission; telecommunications; and hazardous waste management – and the combined system these modal elements comprise. A comprehension of infrastructure spans not only these public works facilities, but also the operating procedures, management practices, and development policies that interact together with societal demand and the physical world to facilitate the transport of people and goods, provision of water for drinking and a variety of other uses, safe disposal of society's waste products, provision of energy where it is needed, and transmission of information within and between communities."<ref>''Infrastructure for the 21st Century'', [[Washington, D.C.]]: National Academy Press, 1987.</ref>
</blockquote>

In [[Keynesian economics]], the word ''infrastructure'' was exclusively used to describe public assets that facilitate production, but not private assets of the same purpose. In post-Keynesian times, however, the word has grown in popularity. It has been applied with increasing generality to suggest the internal framework discernible in any technology system or [[business organization]].

== "Hard" versus "soft" infrastructure ==
In this article, "hard" infrastructure refers to the large physical networks necessary for the functioning of a modern industrial nation, whereas "soft" infrastructure refers to all the [[institution]]s which are required to maintain the economic, health, and cultural and social standards of a country, such as the [[financial system]], the [[education system]], the [[health care system]], the system of government, and [[law enforcement]], as well as [[emergency services]].<ref name="opendb.net"/><ref>http://129.3.20.41/eps/urb/papers/0506/0506002.pdf</ref><ref>http://www.cato.org/pubs/journal/cj11n2/cj11n2-4.pdf</ref>

== Types of hard infrastructure ==
[[File:CTA loop junction.jpg|thumb|[[Chicago Transit Authority]] [[control tower]] 18 on the [[Chicago 'L']]]]
[[File:401 Gridlock.jpg|thumb|[[Highway 401]], the busiest [[highway]] in North America]]
The following list of hard infrastructure is limited to [[capital asset]]s that serve the function of [[Conveyancing|conveyance]] or channelling of people, vehicles, fluids, energy, or [[information infrastructure|information]], and which take the form either of a [[Network (mathematics)|network]] or of a critical [[Vertex (graph theory)|node]] used by [[vehicle]]s, or used for the transmission of [[Electromagnetic radiation|electro-magnetic waves]].

Infrastructure systems include both the [[fixed assets]], and the [[control systems]] and [[software]] required to operate, manage and monitor the systems, as well as any accessory buildings, plants, or vehicles that are an essential part of the system. Also included are fleets of vehicles operating according to schedules such as public transit buses and garbage collection, as well as basic energy or communications facilities that are not usually part of a physical network, such as [[Oil refinery|oil refineries]], [[radio]], and [[television]] [[broadcasting]] facilities.

=== Transportation infrastructure ===
*[[Road]] and [[highway]] networks, including structures ([[bridge]]s, [[tunnel]]s, [[culvert]]s, [[retaining wall]]s), signage and markings, electrical systems ([[street lighting]] and [[traffic light]]s), edge treatments (curbs, [[sidewalks]], [[landscaping]]), and specialized facilities such as [[road maintenance depot]]s and [[rest area]]s
*[[Public transport|Mass transit systems]] ([[Commuter rail]] systems, [[Rapid transit|subways]], [[tram]]ways, [[Tram|trolleys]], City Bicycle Sharing system, City Car Sharing system and [[bus]] transportation)
*[[Rail transport|Railways]], including structures, terminal facilities ([[rail yard]]s, [[train station]]s), [[level crossing]]s, signalling and communications systems
*[[Canals]] and navigable waterways requiring continuous maintenance (dredging, etc.)
*[[Port|Seaports]] and [[lighthouse]]s
*[[Airports]], including [[air navigation]]al systems
*[[Segregated cycle facilities|Bicycle paths]] and [[pedestrian walkway]]s, including [[pedestrian bridge]]s, [[pedestrian underpass]]es and other specialized structures for cyclists and pedestrians
*[[Ferry|Ferries]]

For canals, railroads, highways, airways and pipelines see Grübler (1990),<ref>{{Cite book | last1 = Grübler | first1 = Arnulf | author1-link = | title = The Rise and Fall of Infrastructures: Dynamics of Evolution and Technological Change in Transport | year = 1990 |publisher=Physica-Verlag |location= Heidelberg and New York |isbn= |pages= | url = http://www.iiasa.ac.at/Admin/PUB/Documents/XB-90-704.pdf | postscript = <!--None-->}}</ref> which provides a detailed discussion of the history and importance of these major infrastructures.

=== Energy infrastructure ===
*[[Electrical power industry|Electrical power network]], including [[power station|generation plants]], [[electrical grid]], [[electrical substation|substations]], and [[electricity distribution|local distribution]].
*[[Natural gas]] [[pipeline transport|pipelines]], storage and distribution terminals, as well as the local distribution network. Some definitions may include the gas wells, as well as the fleets of ships and trucks transporting liquefied gas.
*[[Petroleum]] [[pipeline transport|pipelines]], including associated storage and distribution terminals. Some definitions may include the oil wells, refineries, as well as the fleets of tanker ships and trucks.
*Specialized [[coal]] handling facilities for [[Coal preparation plant|washing]], storing, and [[Coal train#Bulk|transporting]] coal. Some definitions may include [[coal mining|Coal mines]].
*Steam or hot water production and distribution networks for [[district heating]] systems.
*[[Electric vehicle network]]s for [[Charging station|charging]] [[electric vehicle]]s.

Coal mines, oil wells and natural gas wells may be classified as being part of the mining and industrial sector of the economy, not part of infrastructure.<ref>Economic Infrastructure CRS Codes, OECD http://www.oecd.org/dataoecd/12/25/43860714.pdf</ref>

=== Water management infrastructure ===
*[[Water supply network|Drinking water supply]], including the system of pipes, storage reservoirs, pumps, valves, [[water purification|filtration]] and treatment equipment and meters, including buildings and structures to house the equipment, used for the collection, treatment and distribution of drinking water
*[[Sewage]] collection, and [[Sewage treatment|disposal]] of waste water
*[[Storm drain|Drainage]] systems (storm sewers, ditches, etc.)
*Major [[irrigation]] systems (reservoirs, irrigation [[canals]])
*Major [[flood control]] systems ([[levee|dikes]], [[levee]]s, major pumping stations and floodgates)
*Large-scale [[snow removal]], including fleets of [[Winter service vehicle#Gritter|salt spreaders]], [[Snowplow|snow plows]], [[snowblower]]s, dedicated [[dump truck]]s, [[Snowplow|sidewalk plows]], the dispatching and routing systems for these fleets, as well as fixed assets such as [[snow dump]]s, [[snow chute]]s, [[snow melter]]s
*[[Coastal management]], including structures such as [[seawall]]s, [[Breakwater (structure)|breakwaters]], [[groyne]]s, [[floodgate]]s, as well as the use of [[soft engineering]] techniques such as [[beach nourishment]], [[sand dune stabilization]] and the protection of [[mangrove]] forests and coastal [[wetlands]].

=== Communications infrastructure ===
*[[Postal service]], including sorting facilities
*[[Telephone]] networks (land lines) including [[telephone exchange]] systems
*[[Mobile phone]] networks
*[[Television]] and [[radio]] transmission stations, including the regulations and standards governing broadcasting
*[[Cable television]] physical networks including receiving stations and cable distribution networks (does not include content providers or "networks" when used in the sense of a specialized channel such as CNN or MTV)
*The [[Internet]], including the [[internet backbone]], [[core router]]s and [[server farms]], local [[internet service providers]] as well as the [[Internet Protocol Suite|protocols]] and other basic software required for the system to function (does not include specific websites, although may include some widely-used web-based services, such as [[social network service]]s and [[web search engines]])
*[[Communications satellites]]
*[[Submarine communications cable|Undersea cables]]
*Major private, government or dedicated telecommunications networks, such as those used for internal communication and monitoring by major infrastructure companies, by governments, by the military or by emergency services, as well as [[national research and education network]]s
*[[Pneumatic tube]] mail distribution networks

=== Solid waste management ===
*[[Waste collection|Municipal garbage and recyclables collection]]
*Solid waste [[landfill]]s
*Solid waste [[incineration|incinerators]] and [[Plasma arc waste disposal|plasma gasification]] facilities
*[[Materials recovery facilities]]
*[[Hazardous waste]] disposal facilities

=== Earth monitoring and measurement networks ===
*[[Weather station|Meteorological]] monitoring networks
*[[Tide gauge|Tidal monitoring]] networks
*[[Stream gauge|Stream Gauge]] or fluviometric<ref>[http://www.thefreedictionary.com/Fluviometer Fluviometer]</ref> monitoring networks
*[[Seismometer]] networks
*[[Earth observation satellite]]s
*[[Geodesy|Geodetic]] benchmarks
*[[Global Positioning System]]
*[[Spatial Data Infrastructure]]

== Types of soft infrastructure ==
Soft infrastructure includes both physical assets such as highly specialized buildings and equipment, as well as non-physical assets such as the body of rules and regulations governing the various systems, the financing of these systems, as well as the systems and organizations by which highly skilled and specialized professionals are trained, advance in their careers by acquiring experience, and are disciplined if required by professional associations (professional training, accreditation and discipline).

Unlike hard infrastructure, the essence of soft infrastructure is the delivery of specialized services to people. Unlike much of the service sector of the economy, the delivery of those services depend on highly developed systems and large specialised facilities or institutions that share many of the characteristics of hard infrastructure.

=== Governance infrastructure ===
*The system of [[government]] and [[Law enforcement agency|law enforcement]], including the political, legislative, law enforcement, justice and penal systems, as well as specialized facilities (government offices, courthouses, prisons, etc.), and specialized systems for collecting, storing and disseminating data, laws and regulation
*[[Emergency services]], such as [[police]], [[fire protection]], and [[ambulance]]s, including specialized vehicles, buildings, communications and dispatching systems
*[[Military]] infrastructure, including [[military base]]s, [[armory (military)|arms depots]], [[military education and training|training facilities]], [[command center]]s, [[military communications|communication facilities]], major [[weapon]]s systems, [[fortifications]], [[arms industry|specialised arms manufacturing]], [[strategic reserve]]s

=== Economic infrastructure ===
*The [[financial system]], including the [[banking system]], [[financial institutions]], the [[payment system]], [[exchange (organized market)|exchanges]], the [[money supply]], [[financial regulation]]s, as well as [[accountancy|accounting]] standards and regulations
*Major business [[logistics]] facilities and systems, including [[warehousing|warehouses]] as well as [[Supply chain management|warehousing and shipping management systems]]
*[[Manufacturing]] infrastructure, including [[industrial park]]s and [[special economic zones]], mines and processing plants for basic materials used as inputs in industry, specialized energy, transportation and water infrastructure used by industry, plus the public safety, zoning and environmental laws and regulations that govern and limit industrial activity, and [[standards organizations]]
*[[Agricultural]], [[forestry]] and [[fisheries]] infrastructure, including specialized food and livestock transportation and storage facilities, major [[feedlot]]s, agricultural price support systems (including agricultural insurance), agricultural health standards, [[Food safety|food inspection]], experimental farms and agricultural research centers and schools, the system of licencing and quota management, enforcement systems against poaching, forest wardens, and fire fighting

===Social infrastructure===
*The [[health care]] system, including [[hospital]]s, the financing of health care, including [[health insurance]], the systems for regulation and testing of medications and medical procedures, the system for training, inspection and professional discipline of doctors and other medical professionals, public health monitoring and regulations, as well as coordination of measures taken during [[public health]] emergencies such as epidemics
*The educational and research system, including [[primary school|elementary]] and [[secondary school]]s, [[university|universities]], specialised [[college]]s, research institutions, the systems for financing and accrediting educational institutions
*[[Social welfare]] systems, including both government support and private charity for the poor, for people in distress or victims of abuse

=== Cultural, sports and recreational infrastructure ===
* Sports and recreational infrastructure, such as [[park]]s, sports facilities, the system of sports leagues and associations
* Cultural infrastructure, such as concert halls, [[museum]]s, [[library|libraries]], theatres, studios, and specialized training facilities
* Business travel and tourism infrastructure, including both man-made and natural attractions, convention centers, hotels, restaurants and other services that cater mainly to tourists and business travellers, as well as the systems for informing and attracting tourists, and travel insurance

== Uses of the term ==
=== Engineering and construction ===
[[Engineers]] generally limit the use of the term "infrastructure" to describe [[fixed assets]] that are in the form of a large network, in other words, "hard" infrastructure. Recent efforts to devise more generic definitions of infrastructure have typically referred to the network aspects of most of the structures, and to the accumulated value of investments in the networks as assets. One such effort defines infrastructure as the network of assets "where the system as a whole is intended to be maintained indefinitely at a specified standard of service by the continuing replacement and refurbishment of its components".<ref>Association of Local Government Engineers New Zealand: "Infrastructure Asset Management Manual", June 1998 - Edition 1.1</ref>

=== Civil defense and economic development ===
[[Civil defense]] planners and [[Development economics|developmental economists]] generally refer to both hard and soft infrastructure, including [[public services]] such as [[schools]] and [[hospitals]], [[emergency services]] such as police and fire fighting, and basic [[financial services]].

=== Military ===
[[Military]] strategists use the term infrastructure to refer to all building and permanent installations necessary for the support of military forces, whether they are stationed in bases, being deployed or engaged in operations, such as barracks, headquarters, airfields, communications facilities, stores of military equipment, port installations, and maintenance stations.<ref>D.O.D. Dictionary of Military and Associated Terms, 2001 (rev. 2005)</ref>

=== Critical infrastructure ===
{{Main|Critical infrastructure}}
The term ''critical infrastructure'' has been widely adopted to distinguish those infrastructure elements that, if significantly damaged or destroyed, would cause serious disruption of the dependent system or organization. [[Storm]], [[deluge]], or [[earthquake]] damage leading to loss of certain transportation routes in a city, for example bridges crossing a river, could make it impossible for people to evacuate, and for [[emergency service]]s to operate; these routes would be deemed critical infrastructure. Similarly, an on-line booking system might be critical infrastructure for an [[airline]].

=== Urban infrastructure ===
''Urban'' or ''municipal infrastructure'' refers to hard infrastructure systems generally owned and operated by [[Municipality|municipalities]], such as streets, water distribution, and sewers. It may also include some of the facilities associated with soft infrastructure, such as parks, public pools and libraries.

=== Green infrastructure ===
{{Main|Green infrastructure}}
''Green infrastructure'' is a concept that highlights the importance of the natural environment in decisions about [[land use planning]].<ref>The Conservation Fund, Arlington, VA. [http://www.greeninfrastructure.net/ "Green Infrastructure."] Accessed 2009-10-06.</ref><ref>Maryland Department of Natural Resources, Annapolis, MD. [http://www.dnr.state.md.us/greenways/gi/gidoc/gidoc.html ''Maryland's Green Infrastructure Assessment: A Comprehensive Strategy for Land Conservation and Restoration.''] May 2003.</ref> In particular there is an emphasis on the "life support" functions provided by a network of natural [[ecosystem]]s, with an emphasis on [[interconnectivity]] to support long-term [[sustainability]]. Examples include clean [[water]] and healthy soils, as well as the more [[Anthropocentrism|anthropocentric]] functions such as [[recreation]] and providing shade and shelter in and around towns and cities. The concept can be extended to apply to the management of [[stormwater]] runoff at the local level through the use of natural systems, or engineered systems that mimic natural systems, to treat polluted [[urban runoff|runoff]].<ref>U.S. Environmental Protection Agency (EPA), Washington, D.C., et al., [http://www.epa.gov/npdes/pubs/gi_intentstatement.pdf ''Green Infrastructure Statement of Intent.''] 2007-04-19.</ref><ref>EPA et al. [http://www.epa.gov/npdes/pubs/gi_action_strategy.pdf "Managing Wet Weather with Green Infrastructure: Action Strategy 2008."] January 2008.</ref>

=== Marxism ===
In [[Marxism]], the term infrastructure is sometimes used as a synonym for "base" in the [[dialectic]] synthetic pair ''[[base and superstructure]]''. However the Marxist notion of base is broader than the non-Marxist use of the term infrastructure, and some soft infrastructure, such as laws, governance, regulations and standards, would be considered by Marxists to be part of the superstructure, not the base.<ref>http://www.anthrobase.com/Dic/eng/pers/marx_karl.htm (accessed January 9, 2011)</ref>

=== Other uses ===
In other applications, the term infrastructure may refer to [[information technology]], informal and formal channels of communication, software development tools, [[political]] and [[social network]]s, or beliefs held by members of particular groups. Still underlying these more conceptual uses is the idea that infrastructure provides organizing structure and support for the system or organization it serves, whether it is a [[city]], a [[nation]], a [[corporation]], or a collection of people with common interests. Examples include [[Information technology management|IT infrastructure]], research infrastructure, terrorist infrastructure, and tourism infrastructure.

== Related concepts ==
The term ''infrastructure'' is often confused with the following overlapping or related concepts.

=== Land improvement and land development ===
{{Main|Land improvement|Land development}}
The terms ''land improvement'' and ''land development'' are general terms that in some contexts may include infrastructure, but in the context of a discussion of infrastructure would refer only to smaller scale systems or works that are not included in infrastructure because they are typically limited to a single [[Real property|parcel of land]], and are owned and operated by the land owner. For example, an irrigation canal that serves a region or district would be included with infrastructure, but the private irrigation systems on individual land parcels would be considered land improvements, not infrastructure. Service connections to municipal service and public utility networks would also be considered land improvements, not infrastructure.<ref>''Land improvement'', Online BusinessDictionary.com, http://www.businessdictionary.com/definition/land-development.html (accessed January 31, 2009)</ref><ref>''Land development'', Online BusinessDictionary.com, http://www.businessdictionary.com/definition/land-development.html (accessed January 31, 2009)</ref>

=== Public works and public services ===
{{Main|Public works|Public services}}
The term ''public works'' includes government owned and operated infrastructure as well as public buildings such as schools and court houses. Public works generally refers to physical assets needed to deliver ''public services''. Public services include both infrastructure and services generally provided by government.

== Typical attributes ==
Hard infrastructure generally has the following attributes.

=== Capital assets that provide services ===
These are physical assets that provide services. The people employed in the hard infrastructure sector generally maintain, monitor, and operate the assets, but do not offer services to the clients or users of the infrastructure. Interactions between workers and clients are generally limited to administrative tasks concerning ordering, scheduling, or billing of services.

=== Large networks ===
These are large networks constructed over generations, and are not often replaced as a whole system. The network provides services to a geographically defined area, and has a long life because its service capacity is maintained by continual refurbishment or replacement of components as they wear out.

=== Historicity and interdependence ===
The system or network tends to evolve over time as it is continuously modified, improved, enlarged, and as various components are rebuilt, decommissioned or adapted to other uses. The system components are interdependent and not usually capable of subdivision or separate disposal, and consequently are not readily disposable within the commercial marketplace. The system interdependency may limit a component life to a lesser period than the expected life of the component itself.

=== Natural monopoly ===
The systems tend to be [[Natural monopoly|natural monopolies]], insofar that [[economies of scale]] means that multiple agencies providing a service are less efficient than would be the case if a single agency provided the service. This is because the assets have a high initial cost and a value that is difficult to determine. Once most of the system is built, the marginal cost of servicing additional clients or users tends to be relatively inexpensive, and may be negligible if there is no need to increase the peak capacity or the geographical extent of the network.

In [[public economics]] theory, infrastructure assets such as highways and railways tend to be [[public goods]], in that they carry a high degree of [[non-excludability]], where no household can be excluded from using it, and [[rivalry|non-rivalry]], where no household can reduce another from enjoying it. These properties lead to [[externality]], [[free rider problem|free ridership]], and [[spillover effect|spillover]] effects that distort perfect competition and market efficiency. Hence, government becomes the best actor to supply the public goods.<ref>Myles, G. D. (1995) Public Economics. Cambridge University Press. 263-264 pg.</ref>

== Economics, management, engineering, and impacts ==
The following concerns mainly hard infrastructure and the specialized facilities used for soft infrastructure.

=== Ownership and financing ===
{{Main|Public capital}}
Infrastructure may be owned and managed by [[government]]s or by private companies, such as [[public utility]] or [[rail transport|railway]] companies. Generally, most roads, major ports and airports, water distribution systems and sewage networks are publicly owned, whereas most energy and telecommunications networks are privately owned. Publicly owned infrastructure may be paid for from taxes, tolls, or metered user fees, whereas private infrastructure is generally paid for by metered user fees. Major investment projects are generally financed by the issuance of long-term [[Bond (finance)|bonds]].

An interesting comparison between [[privatization]] versus government-sponsored [[public works]] involves [[high speed rail]] (HSR) projects in [[East Asia]]. In 1998, the [[Taiwan]] government awarded the [[Taiwan High Speed Rail|Taiwan High Speed Rail Corporation]], a private organization, to construct the 345&nbsp;km line from [[Taipei]] to [[Kaohsiung]] in a 35-year concession contract. Conversely, in 2004 the [[South Korean]] government charged the [[Korea Train Express|Korean High Speed Rail Construction Authority]], a public entity, to construct its high speed rail line, 412&nbsp;km from [[Seoul]] to [[Busan]], in two phases. While different implementation strategies, Taiwan successfully delivered the HSR project in terms of [[project management]] (time, cost, and quality), whereas South Korea successfully delivered its HSR project in terms of product success (meeting owners' and users' needs, particularly in ridership). Additionally, South Korea successfully created a [[technology transfer]] of high speed rail technology from French engineers, essentially creating an industry of HSR manufacturing capable of exporting knowledge, equipment, and parts worldwide.<ref>Kao, T., Yung-Cheng, L, and Shih, M. (2010). Privatization Versus Public Works for High Speed Rail Projects. Transportation Research Record: Journal of the Transportation Research Board. Issue: 2159. Pp. 18-26.</ref>

Henceforth, [[government]] owned and operated infrastructure may be developed and operated in the [[private sector]] or in [[public-private partnership]]s, in addition to in the [[public sector]]. In the United States, public spending on infrastructure has varied between 2.3% and 3.6% of GDP since 1950.<ref>"Money for Public Projects", The New York Times, November 19, 2008 http://www.nytimes.com/imagepages/2008/11/19/business/economy/19leonhardt_graphic.ready.html (accessed January 26, 2009)</ref> Many [[List of financial institutions that invest in infrastructure|financial institutions invest in infrastructure]].

=== Role of pension funds ===

The average [[Resource allocation|allocation]] to infrastructure only represents 1% of total [[assets under management]] by pensions- excluding indirect investment through ownership of stocks of listed utility and infrastructure companies. But there are wide typology differences across regions with many large, sophisticated, pension funds in jurisdictions such as Ontario, Quebec, California, Holland, and Australia already investing more than 5% of their total assets (and typically more than a third of their “alternative” assets) in infrastructure. In countries such as the US, Mexico, Sweden and Norway, there has been a rapid rise of the allocation to infrastructure since 2010, even among more traditional pension funds.<ref name="turkishweekly">{{Cite news|author=M. Nicolas Firzli & Vincent Bazi |title= Infrastructure Investments in an Age of Austerity : The Pension and Sovereign Funds Perspective|url= http://www.turkishweekly.net/op-ed/2852/infrastructure-investments-in-an-age-of-austerity-the-pension-and-sovereign-funds-perspective.html| work=Revue Analyse Financière, volume 41 |date= Q4 2011 |accessdate=30 July 2011 | location=.}}</ref>

====Infrastructure as a new asset class for pension funds and SWFs====

Most pension funds have long-dated liabilities, with matching long-term investments. These large institutional investors need to protect the long-term value of their investments from inflationary debasement of currency and market fluctuations, and provide recurrent [[cash flow]]s to pay for retiree benefits in the short-medium term: from that perspective, think-tanks such as the [[:fr: Forum Mondial des Fonds de Pension|World Pensions Council (WPC)]] have argued that infrastructure is an ideal [[asset class]] that provides tangible advantages such as long duration (facilitating cash flow matching with long-term liabilities), protection against inflation and statistical [[diversification (finance)|diversification]] (low correlation with ‘traditional’ listed assets such as equity and fixed income investments), thus reducing overall portfolio volatility.<ref name="Financial News ">{{Cite news|author=M. Nicolas J. Firzli quoted by Mark Cobley|title= Infrastructure Funds Fail to Bridge the Gap |url= http://www.efinancialnews.com/story/2012-02-20/infra-funds-fail-to-bridge-the-gap | work=Financial News |date= Feb. 20 2012 |accessdate=14 March 2012 | location=.}}</ref>

The various types of pension plans (public and private pensions and [[superannuation]] schemes) account for approximately 40% of all investors in the infrastructure asset class, excluding projects directly funded and developed by governments and public authorities.<ref name="turkishweekly" /> Large pension and SWF investors are particularly active in the field of energy assets such as natural gas and natural gas infrastructure, where they have become majors players in recent years <ref name="revueanalyse">{{Cite news|author=M. Nicolas Firzli & Vincent Bazi |title= The Drivers of Pension & SWF Investment in Energy- Focusing on Natural Gas|url= http://worldpensions.org/uploads/Pension___SWF_Investment_in_Energy___Revue_Analyse___July_2012.pdf| work=Revue Analyse Financière, volume 44, pp. 41-43 |date= Q3 2012 |accessdate=7 July 2012 | location=.}}</ref>

==== Infrastructure debt ====

[[Infrastructure debt]] is a complex investment category reserved for highly sophisticated [[institutional investor]]s who can gauge jurisdiction-specific risk parameters, assess a project’s long-term viability, understand transaction risks, conduct [[due diligence]], negotiate (multi)[[creditor]]s’ agreements, make timely decisions on [[consent]]s and [[waiver]]s, and analyze loan performance over time.

Research conducted by the World Pensions and Investments Forum suggests that most UK and European pensions wishing to gain a degree of exposure to infrastructure debt have done so indirectly, through investments made in infrastructure funds managed by specialized Canadian, US and Australian funds.<ref name="Reuters">{{Cite news|author=M. Nicolas Firzli quoted by Myles Neligan and Sinead Cruise |title= British Infrastructure Finance Plan No Silver Bullet|url= http://www.reuters.com/article/2011/11/28/britain-economy-pensionfunds-idUSL5E7MP21Z20111128| work=Reuters |date= November 28, 2011 |accessdate=28 November 2011| location=.}}</ref>

On November 29, 2011, the British government unveiled an unprecedented plan to encourage large-scale pension investments in new roads, hospitals, airports, etc. across the UK. The plan is aimed at enticing 20 billion pounds ($30.97 billion) of investment in domestic infrastructure projects.

=== Infrastructure asset management ===
{{Main|Infrastructure asset management}}
The method of ''infrastructure asset management'' is based upon the definition of a [[Standard of service|Standard of service (SoS)]] that describes how an asset will perform in objective and measurable terms. The SoS includes the definition of a [[Infrastructure asset management#Minimum condition grade|minimum condition grade]], which is established by considering the consequences of a failure of the infrastructure asset.

The key components of infrastructure asset management are:
*Definition of a standard of service
**Establishment of measurable specifications of how the asset should perform
**Establishment of a minimum condition grade
*Establishment of a [[whole-life cost]] approach to managing the asset
*Elaboration of an ''[[Asset Management Plan]]''

The 2009 report card produced by the [[American Society of Civil Engineers]] <ref>[http://www.asce.org/reportcard/2009/ ASCE report card]</ref> gave America's Infrastructure a grade of "D".

=== Engineering ===
{{Main| Engineering | Project management}}
[[File:BBI 2010-07-23 5.JPG|thumb|right|The [[Berlin Brandenburg Airport]] under construction.]]

Most infrastructure is designed by [[engineers]], [[urbanists]] or [[architects]]. Generally road and rail transport networks, as well as water and waste management infrastructure are designed by [[Civil engineering|civil engineers]], electrical power and lighting networks are designed by [[Power engineering|power engineers]] and [[Electrical engineering|electrical engineers]], and telecommunications, computing and monitoring networks are designed by [[systems engineers]].

In the case of urban infrastructure, the general layout of roads, sidewalks and public places may sometimes be designed by [[Urban planning|urbanists]] or [[Architecture|architects]], although the detailed design will still be performed by civil engineers. If a building is required, it is designed by an [[architect]], and if an industrial or processing plant is required, it may be designed by [[industrial engineer]] or a [[process engineer]].

In terms of engineering tasks, the design and construction management process usually follows these steps:

;Preliminary Studies
*Determine existing and future traffic loads, determine existing capacity, and estimate the existing and future standards of service
*Conduct a preliminary survey and obtain information from existing air photos, maps, and plans
*Identify possible conflicts with other assets or topographical features
*Perform environmental impact studies:
**Evaluate the impact on the human environment ([[noise|noise pollution]], odors, electromagnetic interference, etc.)
**Evaluate the [[environmental impact assessment|impact]] on the [[natural environment]] (disturbance of natural ecosystems)
**Evaluate the possible presence of [[Soil contamination|contaminated soils]];
**Given various time horizons, [[standard of service|standards of service]], environmental impacts, and conflicts with existing structures or terrain, propose various preliminary designs
**Estimate the costs of the various designs, and make recommendations

;Detailed Survey
*Perform a detailed [[Surveying|survey]] of the construction site
*Obtain "as built" drawings of existing infrastructure
*Dig exploratory pits where required to survey underground infrastructure
*Perform a [[geotechnical]] survey to determine the bearing capacity of soils and rock
*Perform soil sampling and testing to estimate nature, degree and extent of [[soil contamination]]

;Detailed Engineering
*Prepare detailed [[Engineering drawing|plans]] and [[technical specifications]]
*Prepare a detailed [[bill of materials]]
*Prepare a detailed [[Cost| cost estimate]]
*Establish a general [[Schedule (project management)|work schedule]]

;Authorization
*Obtain authorization from environmental and other regulatory agencies
*Obtain authorization from any owners or operators of assets affected by the work
*Inform [[emergency services]], and prepare contingency plans in case of emergencies

;Tendering
*Prepare administrative clauses and other tendering documents
*Organize and announce a [[Call for bids|call for tenders]]
*Answer contractor questions and issue addenda during the tendering process
*Receive and analyse tenders, and make a recommendation to the owner

;Construction Supervision
*Once the construction [[contract]] has been signed between the [[Ownership|owner]] and the [[general contractor]], all authorisations have been obtained, and all pre-construction [[Submittals (construction)|submittals]] have been received from the general contractor, the construction supervisor issues an "Order to begin construction"
*Regularly schedule meetings and obtain contact information for the general contractor (GC) and all interested parties
*Obtain a detailed [[Schedule (project management)|work schedule]] and list of subcontractors from the GC
*Obtain detailed traffic diversion and emergency plans from the GC
*Obtain proof of certification, insurance and bonds
*Examine [[shop drawings]] submitted by the GC
*Receive reports from the materials [[quality control]] lab
*When required, review [[Change request]]s from the GC, and issue construction directives and change orders
*Follow work progress and authorize partial payments
*When substantially completed, inspect the work and prepare a list of deficiencies
*Supervise testing and [[Ship commissioning|commissioning]]
*Verify that all operating and maintenance manuals, as well as [[Warranty|warranties]], are complete
*Prepare "as built" drawings
*Make a final inspection, issue a certificate of final completion, and authorize the final payment

=== Impact on economic development ===
{{Main|Economic development|Public capital}}
Investment in infrastructure is part of the [[infrastructural capital|capital accumulation]] required for economic development and may have an impact on [[socioeconomic]] measures of welfare.<ref>Luis Flores Ballesteros. "How Lack and Poor Infrastructure Shapes Inequality and Poverty" 54 Pesos Sep. 2010:54 Pesos 09 September 2010. http://54pesos.org/2010/09/28/how-lack-or-poor-infrastructure-shapes-inequality-and-poverty-in-supernations-a-lesson-from-india/></ref> The [[causality]] of infrastructure and [[economic growth]] has always been in debate. In developing nations, expansions in [[electric grid]]s, [[roadways]], and [[railways]] show marked growth in economic development. However, the relationship does not remain in advanced nations who witness more and more lower [[rates of return]] on such infrastructure [[investments]].

Nevertheless, infrastructure yields indirect benefits through the supply chain, land values, small business growth, consumer sales, and social benefits of community development and access to opportunity. The [[American Society of Civil Engineers]] cite the many transformative projects that have shaped the growth of the United States including the [[Transcontinental Railroad]] that connected major cities from the Atlantic to Pacific coast; the [[Panama Canal]] that revolutionized shipment in connected the two oceans in the Western hemisphere; the Interstate Highway System that spawned the mobility of the masses; and still others that include the [[Hoover Dam]], [[Alaska pipeline|Trans-Alaskan pipeline]], and many bridges (the [[Golden Gate]], [[Brooklyn Bridge|Brooklyn]], and [[Bay Bridge]]).<ref>Griggs, F. E. (2003). Perspectives in Civil Engineering. 1852-2002: 150 Years in Civil Engineering in the United States. American Society of Civil Engineers. Edited by Jeffrey S. Russell. Pp. 111-122.</ref> All these efforts are testimony to the infrastructure and economic development correlation.

=== Use as economic stimulus ===
During the [[Great Depression]] of the 1930s, many governments undertook public works projects in order to create jobs and stimulate the economy. The economist [[John Maynard Keynes]] provided a theoretical justification for this policy in ''[[The General Theory of Employment, Interest and Money]]'',<ref>Keynes, John Maynard (2007) [1936]. The General Theory of Employment, Interest and Money. Basingstoke, Hampshire: Palgrave Macmillan. ISBN 0-230-00476-8 http://cepa.newschool.edu/het/essays/keynes/keynescont.htm.</ref> published in 1936. Following the [[global financial crisis of 2008–2009]], some again proposed investing in infrastructure as a means of stimulating the economy (see the [[American Recovery and Reinvestment Act of 2009]]).

=== Environmental impacts ===
{{Main|Environmental impact assessment}}

While infrastructure development may initially be damaging to the [[natural environment]], justifying the need to assess environmental impacts, it may contribute in mitigating the "perfect storm" of environmental and energy [[sustainability]], particularly in the role transportation plays in [[modern society]].<ref>Puentes, R. (2008). A Bridge to Somewhere: Rethinking American Transportation for the 21st Century. Brookings Institution Metropolitan Policy Report: Blueprint for American Prosperity series report.</ref> [[Offshore wind power]] in [[Wind power in the United Kingdom|England]] and [[Wind power in Denmark|Denmark]] may cause issues to local ecosystems but are incubators to [[clean energy technology]] for the surrounding regions. [[Ethanol]] production may overuse available farmland in [[Brazil]] but have propelled the country to [[energy security|energy independence]]. [[High speed rail]] may cause noise and wide swathes of rights-of-way through countrysides and urban communities but have helped China, Spain, France, Germany, Japan, and other nations deal with concurrent issues of economic [[competitiveness]], [[climate change]], [[energy use intensity|energy use]], and [[built environment]] [[sustainability]].

== History ==
{{Main|Canal|Electrical telegraph|Electric power transmission|Freeway|History of rail transport|History of road transport|Public switched telephone network|Telephone}}
The details of the history concerns mainly hard infrastructure.

=== Before 1700 ===
Infrastructure before 1700 consisted mainly of roads and canals. Canals were used for transportation or for irrigation. Sea navigation was aided by ports and lighthouses. A few advanced cities had [[aqueduct]]s that serviced public fountains and baths, while fewer had [[sanitary sewer|sewer]]s.

;Roads
The first roads were tracks that often followed [[Game (food)|game]] [[trail]]s, such as the [[Natchez Trace]].<ref>Lay, M G (1992). Ways of the World. Sydney: Primavera Press. pp. 401. ISBN 1-875368-05-1.</ref>

The first paved streets appear to have been built in [[Ur]] in 4000 BCE. [[Corduroy road]]s were built in [[Glastonbury]], [[England]] in 3300 BCE<ref name="Lay 1992">Lay (1992)</ref> and brick-paved roads were built in the [[Indus Valley Civilization]] on the [[Indian subcontinent]] from around the same time. In 500 BCE, [[Darius I the Great]] started an extensive road system in [[Persia]] ([[Iran]]), including the [[Royal Road]].

With the rise of the [[Roman Empire]], the Romans built [[Roman road|roads]] using deep roadbeds of crushed stone as an underlying layer to ensure that they kept dry. On the more heavily travelled routes, there were additional layers that included six sided capstones, or pavers, that reduced the dust and reduced the [[drag (physics)|drag]] from [[wheel]]s.

In the [[Islamic Golden Age|medieval Islamic world]], many roads were built throughout the [[Abbasid Caliphate|Arab Empire]]. The most sophisticated roads were those of the [[Baghdad]], [[Iraq]], which were paved with [[tar]] in the 8th century.<ref name=Ajram>{{cite book|author=Dr. Kasem Ajram|title=The Miracle of Islam Science|edition=2nd|publisher=Knowledge House Publishers|year=1992|isbn=0-911119-43-4}}</ref>

;Canals and irrigation systems
The oldest known canals were built in [[Mesopotamia]] c. 4000 BCE, in what is now modern day [[Iraq]] and [[Syria]]. The [[Indus Valley Civilization]] in [[Indian subcontinent|India and Pakistan]] from c3300 BCE had a sophisticated canal [[irrigation]] system.<ref>{{Harvnb|Rodda|2004|p=161.}}</ref> In [[Egypt]], canals date back to at least 2300 BCE, when a canal was built to bypass the [[Cataracts of the Nile|cataract]] on the Nile near [[Aswan]].<ref>{{Harvnb|Hadfield|1986|p=16.}}</ref>

In [[ancient China]], large canals for river transport were established as far back as the [[Warring States]] (481-221 BCE).<ref>{{Harvnb|Needham|1971|p=269.}}</ref> By far the longest canal was the [[Grand Canal of China]] completed in 609 CE, still the longest canal in the world today at {{convert|1794|km|mi}}.

In [[Europe]], canal building began in the [[Middle Ages]] because of commercial expansion from the 12th century. Notable canals were the [[Stecknitz Canal]] in Germany in 1398, the [[Briare Canal]] connecting the [[Loire]] and [[Seine]] in Francein 1642, followed by the [[Canal du Midi]] in 1683 connecting the [[Atlantic]] to the [[Mediterranean]]. Canal building progressed steadily in Germany in the 17th and 18th centuries with three great rivers, the [[Elbe]], [[Oder]], and [[Weser]] being linked by canals.

=== 1700 to 1870 ===
;Roads
As traffic levels increased in England and roads deteriorated, [[toll road]]s were built by ''Turnpike Trusts'', especially between 1730–1770. Turnpikes were also later built in the [[United States]]. They were usually built by private companies under a government [[Franchising|franchise]].

Water transport on rivers and [[canals]] carried many farm goods from the US frontier between the [[Appalachian Mountains]] and [[Mississippi River]] in the early 19th century, but the shorter road route over the mountains had advantages.

In France, [[Pierre-Marie-Jérôme Trésaguet]] is widely credited with establishing the first [[Scientific method|scientific approach]] to [[road building]] about the year 1764. It involved a layer of large rocks, covered by a layer of smaller gravel. [[John Loudon McAdam]] (1756–1836) designed the first modern highways, and developed an inexpensive paving material of soil and stone aggregate known as [[macadam]].<ref name="Lay 1992"/>

;Canals
In Europe, particularly Britain and Ireland, and then in the early US and the Canadian colonies, inland canals preceded the development of [[railroad]]s during the earliest phase of the [[Industrial Revolution]]. In Britain between 1760 and 1820 over one hundred canals were built.

In the United States, navigable canals reached into isolated areas and brought them in touch with the world beyond. By 1825 the [[Erie Canal]], {{convert|363|mi|km}} long with 82 locks, opened up a connection from the populated northeast to the fertile [[Great Plains]]. During the 19th century, the length of canals grew from {{convert|100|mi|km}} to over {{convert|4000|mi|km}}, with a complex network in conjunction with [[Canada]] making the [[Great Lakes]] navigable, although some canals were later drained and used as [[Right-of-way (railroad)|railroad rights-of-way]].

;Railways
The earliest railways were used in mines or to bypass waterfalls, and were pulled by horses or by people. In 1811 [[John Blenkinsop]] designed the first successful and practical railway locomotive,<ref>{{cite web| url=http://www.britannica.com/eb/article-9001800| title=John Blenkinsop| publisher=Encyclopædia Britannica| accessdate=2007-09-10}}</ref> and a line was built connecting the Middleton Colliery to [[Leeds]]. The [[Liverpool and Manchester Railway]],<ref>{{cite web| url=http://www.spartacus.schoolnet.co.uk/RAliverpool.htm| title=Liverpool and Manchester| accessdate=2007-09-19}}</ref> considered to be the world's first intercity line, opened in 1826. In the following years, railways spread throughout the United Kingdom and the world, and became the dominant means of land transport for nearly a century.

In the US, the 1826 [[Granite Railway]] in [[Massachusetts]] was the first commercial railroad to evolve through continuous operations into a [[common carrier]]. The [[Baltimore and Ohio]], opened in 1830, was the first to evolve into a major system. In 1869, the symbolically important [[First Transcontinental Railroad|transcontinental railroad]] was completed in the US with the driving of a golden spike at [[Promontory, Utah]].<ref>{{cite book| title=Nothing Like It In The World; The men who built the Transcontinental Railroad 1863–1869| author=Ambrose, Stephen E.| year=2000| publisher=Simon & Schuster| isbn=0-684-84609-8| authorlink=Stephen E. Ambrose}}</ref>

;Telegraph service
The electrical telegraph was first successfully demonstrated on 25 July 1837 between [[Euston railway station|Euston]] and [[Camden Town]] in London.<ref>[http://www.connected-earth.com/Daysout/BTArchives/Profile/index.htm The electric telegraph, forerunner of the internet, celebrates 170 years] BT Group Connected Earth Online Museum. Accessed July 2007</ref> It entered [[commerce|commercial]] use on the [[Great Western Railway]] over the {{convert|13|mi|km}} from [[Paddington station]] to [[West Drayton]] on 9 April 1839.

In the United States, the telegraph was developed by [[Samuel F. B. Morse|Samuel Morse]] and [[Alfred Vail]]. On 24 May 1844, Morse made the first public demonstration of his telegraph by sending a message from the Supreme Court Chamber in the [[US Capitol]] in [[Washington, DC]] to the B&O Railroad outer depot (now the B&O Railroad Museum) in [[Baltimore, Maryland|Baltimore]]. The Morse/Vail telegraph was quickly deployed in the following two decades. On 24 October 1861, the [[first transcontinental telegraph]] system was established.

The first successful [[transatlantic telegraph cable]] was completed on 27 July 1866, allowing transatlantic telegraph communications for the first time. Within 29 years of its first installation at Euston Station, the telegraph network crossed the oceans to every continent but Antarctica, making instant global [[communication]] possible for the first time.

===1870 to 1920===
;Roads
Tar-bound macadam, or [[tarmac]], was applied to macadam roads towards the end of the 19th century in cities such as [[Paris]]. In the early 20th century tarmac and concrete paving were extended into the countryside.

;Canals
Many notable sea canals were completed in this period, such as the [[Suez Canal]] in 1869, the [[Kiel Canal]] in 1897, and the [[Panama Canal]] in 1914.

;Telephone service
In 1876, [[Alexander Graham Bell]] achieved the first successful telephone transmission of clear speech. The first telephones had no network, but were in private use, wired together in pairs. Users who wanted to talk to different people had as many telephones as necessary for the purpose. A user who wished to speak, whistled into the transmitter until the other party heard. Soon, however, a bell was added for signalling, and then a switch-hook, and telephones took advantage of the [[exchange]] principle already employed in telegraph networks. Each telephone was wired to a local [[telephone exchange]], and the exchanges were wired together with [[trunking|trunks]]. Networks were connected together in a hierarchical manner until they spanned cities, countries, continents, and oceans.

;Electricity
At the [[Exposition Universelle (1878)|Paris Exposition of 1878]], electric [[arc lamp|arc lighting]] had been installed along the Avenue de l'Opera and the Place de l'Opera, using electric [[Yablochkov candle|Yablochkov arc lamps]], powered by [[Zénobe Gramme]] alternating current dynamos.<ref>{{cite book|url=http://www.archive.org/stream/measureforgreatn001419mbp/measureforgreatn001419mbp_djvu.txt|title=A Measure for Greatness: A Short Biography of Edward Weston|author=David Oakes Woodbury|year=1949|publisher=McGraw-Hill |page=83|accessdate=2009-01-04}}</ref><ref>{{cite book|title=Electricity at the Columbian Exposition|url=http://books.google.com/?id=lF5KAAAAMAAJ&pg=PA3|page=1|author=John Patrick Barrett|accessdate=2009-01-04|publisher=R. R. Donnelley & sons company|year=1894}}</ref>

Yablochkov candles required [[high voltage]]s, and it was not long before experimenters reported that the arc lights could be powered on a seven mile (11&nbsp;km) circuit.<ref>{{cite journal|journal=Journal of the Society of Telegraph Engineers|author1=Engineers, Institution of Electrical|volume=IX|date=1880-03-24|title=Notes on the Jablochkoff System of Electric Lighting|url=http://books.google.com/?id=lww4AAAAMAAJ&pg=PA143|issue=32|page=143|accessdate=2009-01-07}}</ref> Within a decade scores of cities would have lighting systems using a central power plant that provided electricity to multiple customers via electrical transmission lines. These systems were in direct competition with the dominant [[gas lighting|gaslight]] utilities of the period.

The first electricity system supplying [[incandescent light]]s was built by the [[Edison Illuminating Company]] in lower Manhattan, eventually serving one square mile with six "jumbo dynamos" housed at [[Pearl Street Station]].

The first transmission of [[three-phase]] [[alternating current]] using high voltage took place in 1891 during the [[International Electro-Technical Exhibition – 1891|International Electro-Technical Exhibition]] in [[Frankfurt]]. A 25&nbsp;kilovolt transmission line, approximately {{convert|175|km|mi|abbr=on}} long, connected [[Lauffen, Baden-Württemberg|Lauffen]] on the [[Neckar]] with [[Frankfurt]]. Voltages used for electric power transmission increased throughout the 20th century. By 1914 fifty-five transmission systems operating at more than 70,000&nbsp;V were in service, the highest voltage then being used was 150,000&nbsp; V.<ref>Bureau of Census data reprinted in Hughes, pp. 282–283</ref>

;Water distribution and sewers
In the 19th century major treatment works were built in [[London water supply infrastructure|London]] in response to [[cholera]] threats. The ''Metropolis Water Act (1852)'' was enacted. "Under the Act, it became unlawful for any water company to extract water for domestic use from the tidal reaches of the Thames after 31 August 1855, and from 31 December 1855 all such water was required to be effectively filtered. The ''Metropolitan Commission of Sewers'' was formed, water filtration was made compulsory, and new water intakes on the Thames were established above Teddington Lock.

The technique of purification of drinking water by use of compressed liquefied [[chlorine gas]] was developed in 1910 by [[US Army]] [[Major]] [[Carl Rogers Darnall]], Professor of Chemistry at the [[Army Medical School]]. Darnall's work became the basis for present day systems of municipal [[water purification]].

;Subways
In 1863 the [[London Underground]] was created. In 1890, it first started using electric traction and deep-level tunnels. Soon afterwards, [[Budapest]] and many other cities started using subway systems. By 1940, nineteen subway systems were in use.

=== Since 1920 ===
[[File:401 widest point.jpg|thumb|A multi-lane, multi-carriageway [[freeway]]]]
;Roads
In 1925, [[Italy]] was the first country to build a freeway-like road, which linked [[Milan]] to [[Como]],<ref>Paul Hofmann, "Taking to the Highway in Italy", ''[[New York Times]]'', 26 April 1987, 23.</ref> known as the [[Autostrada dei Laghi]]. In [[Germany]], the [[autobahns]] formed the first limited-access, high-speed road network in the world, with the first section from [[Frankfurt am Main]] to [[Darmstadt]] opening in 1935. The first long-distance rural freeway in the United States is generally considered to be the [[Pennsylvania Turnpike]], which opened on October 1, 1940.<ref>Phil Patton, ''The Open Road: A Celebration of the American Highway (New York: Simon & Schuster, 1986), 77.</ref> In the [[United States]], the [[Interstate Highway]] System was authorized by the [[Federal-Aid Highway Act of 1956]].<ref name="economist">{{cite news | title = The cracks are showing | publisher = ''The Economist'' | date = 2008-06-26 | url = http://www.economist.com/world/unitedstates displayStory.cfm?story_id=11636517 | accessdate = 2008-10-23 }}</ref> Most of the system was completed between 1960 and 1990.

== Infrastructure in the developing world ==
According to researchers at the [[Overseas Development Institute]], the lack of infrastructure in many [[developing countries]] represents one of the most significant limitations to [[economic growth]] and achievement of the [[Millennium Development Goals|Millennium Development Goals (MDGs)]].<ref name=ODI1>Christian K.M. Kingombe 2011. [http://www.odi.org.uk/resources/details.asp?id=5666&title=latin-america-medellin-colombia-microfinance-post-washington-consensus-microcredit-microenterprise-local-development Mapping the new infrastructure financing landscape]. London: [[Overseas Development Institute]]</ref> Infrastructure investments and maintenance can be very expensive, especially in such as areas as landlocked, rural and sparsely populated countries in [[Africa]].<ref name=ODI1/> It has been argued that infrastructure investments contributed to more than half of Africa's improved growth performance between 1990 and 2005, and increased investment is necessary to maintain growth and tackle [[poverty]].<ref name=ODI1/> The returns to investment in infrastructure are very significant, with on average thirty to forty percent returns for [[telecommunications]] (ICT) investments, over forty percent for [[electricity]] generation, and eighty percent for [[roads]].<ref name=ODI1/>

=== Regional differences ===
The demand for infrastructure, both by consumers and by companies is much higher than the amount invested.<ref name=ODI1/> There are severe constraints on the supply side of the provision of infrastructure in Asia.<ref>Peter McCawley (2010), '[http://apel.anu.edu.au/pdf/24-1/Articles/mccawley.pdf Infrastructure Policy in Developing countries'], ''Asian-Pacific Economic Literature'', 24(1), May. See also Asian-Pacific Economic Literature Policy Brief No 19, May 2010, on '[http://apel.anu.edu.au/pdf/24-1/Policy/mccawley.pdf Infrastructure policy in developing countries in Asia'].</ref> The infrastructure financing gap between what is invested in [[Asia-Pacific]] (around US$48 billion) and what is needed (US$228 billion) is around US$180 billion every year.<ref name=ODI1/>

In [[Latin America]], three percent of [[GDP]] (around US$71 billion) would need to be invested in infrastructure in order to satisfy demand, yet in 2005, for example, only around two percent was invested leaving a financing gap of approximately US$24 billion.<ref name=ODI1/>

In [[Africa]], in order to reach the seven percent annual growth calculated to be required to meet the MDGs by 2015 would require infrastructure investments of about fifteen percent of GDP, or around US$93 billion a year.<ref name=ODI1/> In [[fragile state]]s, over thirty-seven percent of GDP would be required.<ref name=ODI1/>

=== Sources of funding ===
Currently, the source of financing varies significantly across sectors.<ref name=ODI1/> Some sectors are dominated by government spending, others by [[development aid|overseas development aid (ODA)]], and yet others by private investors.<ref name=ODI1/>

In [[sub-Saharan Africa]], the government spends around US$9.4 billion out of a total of US$24.9 billion.<ref name=ODI1/> In [[irrigation]], governments represent almost all spending. In [[transport]] and [[energy]] a majority of investment is government spending. In [[Information and communication technologies|ICT]] and [[water supply]] and [[sanitation]], the private sector represents the majority of capital expenditure.<ref name=ODI1/> Overall, between them aid, the private sector, and non-[[OECD]] financiers exceed government spending.<ref name=ODI1/> The private sector spending alone equals state capital expenditure, though the majority is focused on ICT infrastructure investments.<ref name=ODI1/> External financing increased in the 2000s (decade) and in Africa alone external infrastructure investments increased from US$7 billion in 2002 to US$27 billion in 2009. [[China]], in particular, has emerged as an important investor.<ref name=ODI1/>

==See also==
{{div col|2}}
*[[Airport infrastructure]]
*[[Asset Management Plan]]
*[[Critical infrastructure]]
*[[Green infrastructure]]
*[[Infrastructure Asset Management]]
*[[Infrastructure security]]
*[[Infrastructural capital]]
*[[Land improvement]]
*[[Megaproject]]
*[[project finance]]
*[[Public services]]
*[[Public works]]
*[[Pseudo-urbanization]]
*[[Logistics]]
*[[wind farms]]
{{div col end}}

==References==
{{Reflist|2}}

==Bibliography==
* Larry W. Beeferman, Pension Fund Investment in Infrastructure: A Resource Paper”, Capital Matter (Occasional Paper Series), No.3 December 2008
* A. Eberhard, “Infrastructure Regulation in Developing Countries”, PPIAF Working Paper No. 4 (2007) World Bank
* M. Nicolas J. Firzli & Vincent Bazi, “Infrastructure Investments in an Age of Austerity : The Pension and Sovereign Funds Perspective”, USAK/JTW July 30, 2011 and Revue Analyse Financière, Q4 2011
* Georg Inderst, "Pension Fund Investment in Infrastructure", OECD Working Papers on Insurance and Private Pensions, No. 32 (2009)

==Further reading==
*{{cite book|last=Ascher|first=Kate; researched by Wendy Marech|title=The works: anatomy of a city|year=2007|publisher=Penguin Press|location=New York|isbn=978-0143112709|edition=Reprint.}}
*{{cite book|last=Hayes|first=Brian|title=Infrastructure: the book of everything for the industrial landscape|year=2005|publisher=Norton|location=New York City|isbn=978-0393329599|edition=1st}}
*{{cite book|last=Huler|first=Scott|title=On the grid: a plot of land, an average neighborhood, and the systems that make our world work|year=2010|publisher=Rodale|location=Emmaus, Penn.|isbn=978-1-60529-647-0}}

==External links==
{{Commons category|Infrastructure}}
{{Wiktionary|infrastructure}}
* [http://www.regulationbodyofknowledge.org Body of Knowledge on Infrastructure Regulation]
* [http://www.nextgenerationinfrastructures.eu/ Next Generation Infrastructures international research programme]
* [http://www.infrastructurereportcard.org/ Report Card on America's Infrastructure]
* [http://www.clicker.com/tv/the-rachel-maddow-show/no-money-for-infrastructure-get-ready-to-crumble-1996005/ No Money for Infrastructure Development]
* [http://www.infrainput.org/ InfraInput.org: Database-driven, one-stop website for infrastructure issues and ideas]

{{Infrastructure}}

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[[sr:Инфраструктура]]
[[sh:Infrastruktura]]
[[su:Infrastruktur]]
[[fi:Infrastruktuuri]]
[[sv:Infrastruktur]]
[[tl:Impraestruktura]]
[[ta:உள்கட்டமைப்பு]]
[[te:అవస్థాపన సౌకర్యాలు]]
[[th:โครงสร้างพื้นฐาน]]
[[tr:Altyapı]]
[[uk:Інфраструктура]]
[[vi:Công trình hạ tầng xã hội]]
[[zh-yue:基建]]
[[zh:基础设施]]

Revision as of 12:45, 10 July 2012