Site icon Exact Editions Blog

Information Infrastructure Projects

Today Obama is inaugurated and steering his economic recovery plan through Congress will be a key target for his first 100 days. Governments throughout the developed world are looking for significant infrastructure projects to stimulate employment and to stimulate demand. That is the good old Keynesian solution to a recession which has come right back into fashion. Why has there been so little attention given to public infrastructure investments in the information field? Universal broad band seems to be the only plausible candidate so far ($6 Billion is the projected cost of this in the US plan, less than %1 of the total package). Most of the ideas that we read about from Obama, or from think tanks, are that employment will be created by investing in mass transit, or in efficient power transmission, social housing, or neglected infrastructure projects (old bridges and roads etc). Surely we should also be thinking about infrastructure projects for the information sector? But whether the projects are physical or digital, it has to be recognised that there are at least two problems with pump-priming investments. In the blogged comment of the Nobel Laureate Gary Becker:

The activities stimulated by the [Obama] package to a large extent would draw labor and capital away from other productive activities. In addition, the government programs were unlikely to be as well planned as the displaced private uses of these resources. (Becker — Infrastructure in a Stimulus Package)

So large-scale publicly funded information infrastructure investments that are to be part of a stimulus package must not suck up highly skilled labour which is in short supply, and if they are to be part of a timely intervention they must not involve substantial leadup and planning time. Its a no-no to suggest putting billions into the creation of vast libraries of Open Source software, after all most competent programmers are gainfully employed. As for the requirement of effective planning, it will be much easier to identify a promising project that can be scaled up or replicated than to start something completey de novo. There are such projects in the information field, and rapid scaling up looks most promising for initiatives which involve large amounts of data collection. Data collection is often relatively unskilled, or with skills that can be easily taught. Of course, it is also important that the information being collected is of real use. Here are three suggestions:

Exit mobile version