PI Global Investments
Infrastructure

Explainer: What is infrastructure, and why is it so hard to fix?


Q: A lot of people are pessimistic about the government’s ability to deliver large infrastructure projects at a reasonable cost. Is this pessimism warranted?

Some of the most remarkable investments in infrastructure were accomplished by the United States government. Think about the Hoover Dam, the Bay Bridge, LaGuardia Airport. These were all built during the New Deal when there was a national effort to get the American population behind what the government was doing.

Right now, it takes too long and it costs too much to build infrastructure in the United States. There’s no quick fix or easy answer. You need a great national project that brings the public sector, the private sector, labor, business, and community groups together to invest in our country’s infrastructure.

We need to take a hard look at the way things are currently done within our governments and companies. This means reconsidering regulations and requirements that individually made sense but, when layered over years, have created processes where well-intentioned public servants can’t get anything done.

At the same time, we need to make sure that those public servants have the resources they need to do their jobs. For example, state departments of transportation have shrunk over time, and that has real impacts on the cost of projects. We need to invest in our public institutions, we need to invest in public servants, and we need to make sure that they have the tools to get their jobs done.

Q: Why is it so complicated and costly to fix these issues?

There is a real and meaningful tension between efficiency and democracy. When you want communities and the public to have a voice, which is necessary and appropriate in any democratic process, there are often many veto points. That process can be then exploited by actors who are trying to stop good things from getting done. The system now is overly litigious. Things like environmental permitting, which have important and good purposes, have been used as a tool to stop projects—even clean energy projects that have an overall positive benefit on the environment. As a result, these systems are getting in the way of progress.

Q: Are there any particularly successful examples of American infrastructure projects in recent years?

It’s important to think of both the mega-projects and the backyard projects. Both have meaningful impacts on our communities. On the mega-project side, one example is the Mario Cuomo Bridge in New York. It was executed using what was an innovative procurement method at the time. It also went through an expedited environmental permitting process. As a result of both of those activities, it was delivered on time, on budget, and, by some estimates, saved billions of dollars for the taxpayer.

In terms of smaller projects, one of our priorities in the Biden administration was to replace lead pipes. When President Biden took office, there were still 9 million lead pipes serving our homes, which are a source of toxic chemicals. Through money provided by the federal government, communities across the country including Milwaukee, Detroit, Denver, and St. Paul replaced nearly half a million lead pipes, benefiting 1.2 million people.

Q:  And what are some projects that haven’t delivered or have been unsuccessful?

One example is the California High-Speed Rail project. The California project has been going on for decades, with little tangible progress. One of the reasons is because the project has been funded piecemeal over time rather than through a significant commitment upfront. Another challenge was a lack of capacity. You need strong public institutions with well-resourced public servants to manage complicated procurements. That project has also been challenged by environmental permitting, litigation, and folks who have said, “Not in my backyard,” and have stood up against the promise and the development of high-speed rail.

Q: What infrastructure priorities should governments focus on in the next 10 years?

I think three top infrastructure priorities from the national side are, number one, climate resilience. We need to protect our communities from the impacts of climate change. The second is clean energy generation and transmission so that we can power our future. And the third is closing the digital divide because we know that affordable, reliable, high-speed internet is important for everything from remote school to work to telehealth.

Q: What can state and local governments achieve when it comes to infrastructure? What can people do in their own communities?

Even though the federal government gets more headlines when it comes to infrastructure investment, states and cities spend more on it by a rate of about three to one. If you are interested in a career in infrastructure, look at every single level of government. There are also opportunities in your community. You can get involved with the planning committee. You could attend a community meeting. We need people at every level of the system advocating for the very best infrastructure and projects to help their communities thrive.

Photo by Jim West/UCG/Universal Images Group via Getty Images

 



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