US infrastructure deficit

But if the same person was brought to New York’s LaGuardia Airport, he would say: “I must be in some Third-World country.” Andrew Cuomo, the New York governor, was even harsher in his assessment of the two airports in New York. “LaGuardia and JFK are inexcusable, frankly, that they have not been redeveloped to keep pace with the best international airports,” he said. He later described LaGuardia as “the worst airport in America… that is a disgrace and is unacceptable.”

Interestingly, just around the time the two American leaders were bemoaning the state of airport infrastructure in the US, Mumbai (a city that had one of the worst airports in the world all these years) saw the opening of a new international terminal that has won critical reviews. American infrastructure, especially in transportation, is crumbling but unfortunately governments are not doing enough to boost spending.

America’s ranking in terms of infrastructure in the World Economic Forum’s Global Competitiveness report has fallen sharply. The American Society of Civil Engineers (ASCE) estimates that the US needs to spend $3.6 trillion over the next six years to boost its infrastructure, especially in roads, highways, bridges and urban facilities. The ASCE’s 2013 report card for American infrastructure gave a low D+ ranking to the sector as a whole. The civil engineers’ body estimates that one in nine bridges in the US, adding up to more than 65,000, are ‘structurally deficient’. President Barack Obama wants Congress to allot $302 billion for upgrading the nation’s roads and railways.

Unfortunately, unlike in many other parts of the world, much of the spending on infrastructure in the US is done by the federal and state governments, with insignificant public-private initiatives. Many Americans are also reluctant to pay toll on roads; consequently, governments do not want to introduce such fees on interstate highways, though many of the roads are nearing the end of their 50-year life span. Traditionally, building and repairing of roads is funded by a federal tax on petrol, but with a gradual decline in the number of vehicles, the money is inadequate to fund improvements.

The crisis in America calls for new thinking and a greater role for private players to bridge the widening infrastructure deficit.