Nama : Desti Septiana

NIM : 044540359

Matkul : Bahasa Inggris Niaga

Prodi : Manajemen S1

Infrastructure is the basic facilities and system serving a country, region, or community. What
will happen to a country’s economy if there is no sufficient infrastructure (i.e. damage road, less
health facilities, etc) in that country?

Answer:

Equitable economic development is very important considering whether or not an

economy is efficient is also influenced by infrastructure. This is important because infrastructure
determines a location of economic activity and what types of activities or sectors can be carried
out in that area. Well-developed infrastructure will reduce the effect of distance between regions,
integrate markets widely and connect regions between countries that have low input prices. In
addition, the availability and quality of infrastructure significantly affect economic growth and
reduce income disparities in these various regions. The infrastructure network formed will
facilitate the distribution of competitive economic activity results in the market.

Kim (2006) says that infrastructure is social overhead capital. This is because
infrastructure is considered as a basic tool that has an impact on society in production activities.
Social overhead capital contributes to improving the quality of productivity, helping to provide
awareness of the potential of human resources, and creating a conducive situation so that this
potential can be utilized. Supply chains formed from infrastructure will provide a pulling effect
on the economy and become a catalyst between production, market and final consumption
processes. So that infrastructure becomes an economic backbone to support logistics flows in
economic activities.

The quality of infrastructure in a country is important considering that the effectiveness

of the distribution of economic output depends on the availability of the infrastructure. Based on
data from The Global Competitiveness Index (2014), the infrastructure rating of ASEAN
(Association of South East Asia Nations) countries has a significant gap. Of course, this
condition is a serious obstacle, considering that ASEAN is an area that is a potential economic
region in the world. ASEAN is an important part of the pacific rim where many researchers say
the pacific rim region has high economic growth. Trading activities in this region will become
the center of world trade. Thus the researchers call the 20th century the Atlantic century and the
21st century the Pacific century.

The development of infrastructure as an economic lever is inseparable from technological

developments which continue to provide solutions to obtain the most efficient formulation in
economic activity. Coordination in the development of economic infrastructure is also required
to respond to market demands more quickly. Economic linkage that is realized within ASEAN
countries and globally must have a strong infrastructure foundation. Information as an economic
commodity that has value, is now an important part of an economy. So that adequate telecom
munications infrastructure is needed to distribute this information and have value in the
economy.

When the state of infrastructure in a country is weak, it means that the country's economy
is running in a very inefficient way. Very high logistics costs, leading to companies and
businesses that lack competitiveness (due to high business costs). not to mention the emergence
of social injustice, for example, it is difficult for some residents to visit health facilities, or it is
difficult for children to go to school because the journey is too difficult or expensive.

Infrastructure development and macroeconomic development should have a reciprocal

relationship, because infrastructure development causes economic expansion through a multiplier
effect. While economic expansion raises the need to expand existing infrastructure, to absorb the
increasing flow of goods and people circulating or circulating throughout the economy.
However, if the infrastructure cannot absorb the increase in economic activity (and not enough
new infrastructure is developed) there will be a problem similar to a blocked artery in the human
body, which causes a life-threatening condition where blood cannot flow.
Sumber ;

Kim, B. (2006). Infrastructure development for the economic development in developing

countries: lessons from Korea and Japan. GSICS Working Paper Series, 11.

Galih Adi Prasetyo. (2019). The Effect of Telecommunication Infrastructure Development on

Economic Growth in ASEAN. Jurnal Ilmu Ekonomi Terapan, Vol. 4 No. 1.