Infrastructure

Infrastructure is man-made products services that facilitate production and distribution of other goods and services. The term was originally used to refer to the basic systems that support a community. Roads, bridges, railroad tracks, power lines, sewer systems, and water systems are considered part of a community’s infrastructure. Over time the phrase has expanded to include such things as postal and prison systems and the national defense system, but recently it has become widely used in the information technology industry, referring to the basic system of computing in general and to the INTERNET in particular. In the United States, development of the railroads in the 1800s, the interstate highway system in the 1950s, and expansion of communication systems in the 1990s all were major infrastructure investments leading to economic growth. The decaying national infrastructure is a popular discussion topic in public-administration circles. This refers to the decay of the bridges, roads, and sewer systems on which communities depend. Often governments will defer improving infrastructure as a way to address a financial crisis, which could leave them in a situation of what is termed hidden debt. One government may have the exact same financial situation as one of its neighboring governments; however, it could be in serious hidden financial trouble because of decaying infrastructure that needs to be dealt with to keep the community viable. During economic declines, organizations such as school systems and businesses also defer infrastructure maintenance and replacement, hoping better ECONOMIC CONDITIONS or a crisis event will result in the needed resources to make infrastructure improvement. During economic expansions, managers are faced with the difficult choice of whether to increase output using existing technology, expanding work hours, or adding additional work shifts; or to replace existing CAPITAL with new technology. Often infrastructure constraints influence these business decisions.