Carl M. Guelzo
Abstract:
The question of how economies grow and develop has intrigued economists and plagued politicians for years. Despite much disagreement, it is almost universally agreed that national poverty begins on the farm. Farmers in countries with slow development are trapped in this low paying occupation either because they have become accustomed to poverty or from a lack of access to alternative employment opportunities. This trap has stunted the economic growth of many developing nations by depriving them of practically educated workers in the industrial sector. To increase human capital and move it to the industrial sector, infrastructure must be increased. Investment in transportation infrastructure will allow easier transportation of individuals from agricultural communities to the cities. Such movement will fuel economic development driven by the industrial sector in a similar manner to how the influx of workers to the cities of England and later the United States fueled each country’s manufacturing surge a century ago. Transportation investment will also provide employment opportunities for farmers that pay higher wages than farming. Investment in transportation also has a trickle-down effect on local businesses. Increased wages for farmers that have become railroad workers will boost the local economies as these farmers spend more in local businesses. For some farmers turned railroad workers, railroad work will serve as a stepping stone to managerial work in the industrial sector of the cities. Transportation experience adds on to the seasonal discipline imposed on the farmer by nature. The pressures inherent in railroad manager jobs force the farmer to be very careful in his work, in order to avoid delayed trains, collisions, collapsed bridges, etc. Former farmers can fill the void of administrative talent in the industrial sector and help to drive their nation’s economic growth.
Key Words: Transportation, Infrastructure, Economic Development, Human Capital
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