Report: US falling behind in infrastructure

US not investing enough

Steve Hawley, May 21, 10.

The United States risks falling behind other countries in terms of economic competitiveness if it does not immediately start to invest in its infrastructure, according to a new report from the Urban Land Institute (ULI).

The report notes:

[Countries in Europe and Asia] continue to implement long-range programs to integrate rail, road, transit, airport, and seaport networks to serve major economic hubs, employing state-of-the-art technologies and systems. Despite coping with recessionary fallout, they can front-load stimulus spending on national and regional infrastructure initiatives already underway—expanding high-speed rail networks and expediting energy and water projects.

In the United States, on the other hand:

[R]ecession-busted government budgets, entitlement and defense expenditures, and ballooning health care costs push infrastructure down most political priority lists—leaders continue to procrastinate when it comes to new investments as stressed taxpayers balk at more spending.

The United States has taken some positive steps recently, the report says. Last year’s stimulus bill provided money for key investments in energy, water, and transportation systems - particularly high-speed rail. In addition, the report notes that the US Department of Transportation, the Environmental Protection Agency, and the Department of Housing and Urban Development are partnering to “break down planning barriers between federal agencies responsible
for infrastructure-related programs.” However, a strong long-term commitment is needed to keep pace with global competitors, it says.

The report supports the concept of a national infrastructure bank modeled on European programs, as well as paying for infrastructure with user fees. This would also help reduce driving, energy consumption, and water use.

While transportation and energy tend to dominate the infrastructure debate, the report says that building and maintaining water infrastructure is particularly important. Aging infrastructure and rapid population growth in the US and abroad means that cities everywhere are struggling to provide enough safe and clean water to meet the needs of their residents and businesses.

Executive summary
ULI report: Infrastructure 2010: Investment Imperative