Abstract

 


 



Re‐Imagining Infrastructure


Mark Gerencser


affiliation not provided to SSRN

Summer 2011

Journal of Applied Corporate Finance, Vol. 23, Issue 3, pp. 18-29, 2011

Abstract:     
A senior executive of Booz Allen Hamilton and co‐author of a business bestseller called Megacommunities argues that the United States is locked into an obsolete pattern of dealing with infrastructure investment, even as the country's population growth and technology have raced ahead. Three of America's basic “lifeline” infrastructures - energy, transportation, and water - are nearing the end of their useful operating lives and in desperate need of modernization. U.S. capital spending on infrastructure has been inadequate, amounting to less than 2% of GDP, as compared to 9% in China and 5% in India. But if infrastructure renewal will be costly, money is not the biggest obstacle. History shows that modernizing existing infrastructures tends to be even more challenging than creating new ones because of the drag caused by legacy hardware and the associated human “software.” And so the real problems are conceptual, institutional, and political - problems whose solutions demand transformational vision and leadership that will encourage collaborative participation by both the public and private sectors. What is lacking, then, is an oversight and coordination mechanism that restores government's traditional integrating role without creating either new monopolies or a larger, more centralized government. To that end the author issues four imperatives:. First is the need to rethink the form and function of our old infrastructures. Second is the need for design principles that make future infrastructures robust and adaptable as technology advances, funding changes, and the needs of our citizens evolve. Third is the need for leadership that succeeds by convening, integrating, and aligning the interests and actions of all important stakeholders. Fourth and last is the need for a national vision for America's infra‐structure that defines the function and performance of the entire system over its total lifecycle. A new kind of collaboration by different constituencies, which the author refers to as the creation of “megacommunities,” is held up as a way for stakeholders with conflicting interests to cooperate on compelling issues of national importance with a shared set of practices and protocols.

Number of Pages in PDF File: 14

Accepted Paper Series


Date posted: September 29, 2011  

Suggested Citation

Gerencser, Mark, Re‐Imagining Infrastructure (Summer 2011). Journal of Applied Corporate Finance, Vol. 23, Issue 3, pp. 18-29, 2011. Available at SSRN: http://ssrn.com/abstract=1935242 or http://dx.doi.org/10.1111/j.1745-6622.2011.00337.x

Contact Information

Mark Gerencser (Contact Author)
affiliation not provided to SSRN
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