Infrastructure and Regulatory Reform

Infrastructure has remained a perpetual bottleneck in the country’s
development. Businessmen, both foreign and local, complain of poor
infrastructure, which contributes to higher costs of doing business:
overhead costs, transaction costs etc. Foreign investors have pointed
to the country’s poor infrastructure as the culprit for their decision
to move elsewhere. It is perhaps already a well-worn cliché that to
develop, the country needs to develop first its infrastructure.

Good infrastructure benefits not only the business sector. Access to
affordable and reliable infrastructure services such as electricity,
water, transport and communications is also a basic human requirement,
necessary for poverty alleviation. Thus, any reform agenda that aims
for growth with equity must make infrastructure development an integral
component of its program.

This chapter reviews the various problems affecting the infrastructure
sector based on the findings and recommendations of past studies. The
discussion is basically divided into two. The first part presents the
common issues confronting the infrastructure sector in general. The
second part deals with sectorspecific concerns related to competition
policy in the power, air transport, and telecommunications industries.

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