Tuesday, September 22, 2009

Prosperity by Road, not Literacy

Sauvik has a piece on “The road to trade and growth”

As I have earlier blogged here the key idea about road and prosperity is not to just worth note and give lip services whenever election come but needs rethinking in a wider prospective.

Sauvik writes “..the losses we suffer because of this “planned catastrophe”. Topping the list is the reduction in productivity for each of us. Productivity is measured in time. And a disaster of a transport system wastes time—the most important factor of production. The human engine can work only so many hours in a day. The more hours eaten up by transportation, the less there are left over for work and production. As Lord Peter Thomas Bauer famously remarked: “What limits growth in poor nations is not the limited capacity to export. Rather, it is the limited capacity to produce.”

No comments:

Post a Comment