Month: February 2023

Categories
Economics Infrastructure Lytton Advisory

What are the infrastructure priorities in the Pacific?

Infrastructure: Definition, Meaning, and Examples

A significant challenge in developing infrastructure plans is prioritising the pattern of infrastructure investment.  In the Pacific, the infrastructure priorities of island nations are likely to vary depending on the specific needs and resources of each individual country. However, there are some common priorities that may be considered.

Transportation: Many Pacific Island nations rely on air and sea transportation for the movement of goods and people. Improving and expanding transportation infrastructure, such as airports, ports, and roads, can help facilitate economic development and improve connectivity within and between islands.

Energy: Many Pacific Island nations rely heavily on fossil fuels for energy, which can be expensive and environmentally harmful. Prioritising the development of renewable energy sources, such as solar and wind power, can help reduce reliance on fossil fuels and improve energy security.

Water and sanitation: Access to clean water and proper sanitation facilities is essential for public health. Improving water and sanitation infrastructure can help reduce the incidence of waterborne diseases and improve overall health outcomes.

Communications: Improving telecommunications infrastructure, such as internet connectivity and mobile phone networks, can help connect remote communities and facilitate economic development.

Healthcare: Access to healthcare is often limited in Pacific Island nations due to limited infrastructure and resources. Improving healthcare infrastructure, such as hospitals and clinics, can help ensure that people have access to essential healthcare services.

In addition to sectoral-focussed opportunities, there may also be individual, specific large scale projects that are part of a broader pattern of planned national development.  

Context is King in formulating priorities, but it does require an underlying framework of agreed infrastructure classification as well as a set of priority values which potential projects can be examined.

Categories
Economics

A Canada – America Comparison

Lytton Advisory is travelling in Canada and the United States during February. It presents an opportunity to compare and contrast two dynamic economic systems, as well as look at the underlying structure of these economies and how some of the cities operate (or don’t).

The economy of Canada is closely tied to that of the United States, as the two countries have a highly integrated trading relationship. However, there are some key differences between the two economies.

In terms of size, the United States has a larger economy than Canada. The GDP of the United States at around US$24 trillion is around 10 times larger than that of Canada.

In terms of composition, the economies of the two countries are similar, with both relying heavily on services and manufacturing. However, the United States has a larger agricultural sector, while Canada has a larger natural resources sector, particularly in oil and gas.

Both countries are heavily oriented towards external trade, with the United States and Canada being each other’s largest trading partners. However, the United States has a more diversified trade portfolio, with significant trade relationships with countries all over the world, while Canada’s trade is more heavily concentrated with the United States.

In terms of investment, the United States is generally considered to be a more attractive destination for foreign investment than Canada. The United States has a larger and more developed economy, as well as a more business-friendly environment. However, Canada is also a popular destination for foreign investment, particularly in the natural resources sector.

In terms of ease of doing business, the United States generally ranks higher than Canada. The World Bank’s Ease of Doing Business Index, the United States is ranked 7th while Canada is ranked 18th. However, there are some specific areas in which Canada is considered to be more business-friendly, such as labor laws and regulations.

Such a broad brush consideration of two large economies masks significant regional variations in each economy. It does identify some major themes however.

As a starting point, are these kinds of comparisons relevant, valid or useful? Let us know in the comments below.