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Overview:

Important Features of Infrastructure:

For example,
1. building of rural roads will benefit agriculture as the farmers are able to sell their products in towns
where they can get remunerative prices. The same transportation system moves intermediate goods to
other producers for subsequent use in their production process, and it moves finished goods to the
consumers. An efficient transport system enables Just in Time (JIT) production techniques. Components
are delivered when needed reducing a firms stock levels hence unit costs
2.This can either be direct or indirect. Direct employment will be created in the industry itself , such as
drivers , logistics managers and pilots. Indirectly, jobs are created in for example the insurance and
financing industry, related to the assets of transport companies.
3. The bulk of the electronic products we use daily, such as television sets, is manufactured in the east
and transported through ship to Africa.

What are the Basic principles of economics as applied to Transportation Infrastructure

1.) Transportation and Economic Behavior

 Example: In a logistic operation, having a good transport system,logistic activities like delivery, speed,
service quality, operation costs, the usage of facilities and energy saving could provide better logistics
efficiency, reduce operation cost, and promote service quality.

2.) Equity

 The “Benefits Received” Approach – It means whatever the income tax people are paying, they will also
receive the similar kind of benefits from the tax paid. Examples taxpayers who own or drive cars should
pay more taxes that go towards road maintenance than taxpayers who do not own or use cars. This
include highway tolls, bridge tolls and park tickets.
 The “Ability to Pay” Approach - Those having higher income must be divided with higher taxes as their
ability to pay.

3.) Efficiency

 Its collection is based on the principle of ‘beneficiaries pay’ or ‘user’s pay’. The burden of paying the
charge is placed on those who use the road network.
 MVUC collections are earmarked exclusively for (1) road maintenance including the improvement of road
drainage, (2) the installation of adequate and efficient road safety devices, and (3) air pollution control.
 Thus, MVUC funds cannot be used for construction of new roads and major road repairs as this falls under
the jurisdiction of the DPWH. It cannot also be used for construction of new local roads or major repairs
thereof as this falls under the jurisdiction of local government units. The MVUC can only be used for the
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maintenance of existing national, city and provincial roads; and for programs that ensure road safety and
air pollution control thereon.

4.) Externalities

 The classic solution to the externality problem is to tax negative externalities and subsidize positive
externalities.
 For positive externalities: use of funds for expansion of infrastructures (income from users fee and
from our tax)
 negative externalities: Imposing of Fines and Penalties for Violators

5. Efficient Financing Policy

 Our government recognizes the Public-Private Partnership (PPP) as an approach to invest resources for
adequate road infrastructure. The Government has less resources to invest on Expressways.
 The best example of this is the build build build program of our president, but what is BBB?

I HAVE A COPY OF THE VIDEO OF WHAT IS BUILD BUILD BUILD IS ALL ABOUT, JUST TO HAVE AN IDEA, LET US
WATCH

E-GOVERNMENT

Introduction:

 Example: some governments provide online services such as driver’s license renewal, online appointment
for passport application, use for transparency in public procurement like Phil-geps, and many more. These
services could potentially reduce the number of people in line and waiting time.
 Government investment presumably more productive but what about the fairness of financing such
technology? This topic will evaluate the equity or fairness of e-government technology expenditures.

Internet Usage

 Before we can evaluate the equity of e-government technology expenditure, we need to understand
Internet Usage. The Internet is of course very popular and its popularity grew exponentially in the late
1990s and 2000s
 Despite of Internet Popularity, fewer Internet users visit government web sites.

The Developmental Phases of E-Government Technology

 When developing e-technology, governments pass through four successive phases.

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 Formative phase – a simple homepage is created and basic information such as calendar and event
information, documents, constituents services and search engines are provided.(official website has been
created).
 Transaction Phase - Citizen with access to the internet can apply for an appointment for passport
application, NBI and PSA.
 Transformational Phase – these departments may have direct online connection with vendors. Just like
PHILGEPS

Equity and E-Government

 We want to determine who benefits from expenditure or service and who pays for the expenditures or
service.
 We can consider e-government a pure public good.

How Governments Financing E-government Expenditures?

 Most Technology projects are unfit for longterm bonds due to a shorter life span so some governments
are leasing technology.
 Example Dell Offer “Refresh Leases” to governments, here, the lessee –the government entity can trade
in old equipment for newer, updated equipment.
 Some governments are charging fees for e-government services. Using fees and charges governments are
not increasing taxes, rather they are recovering the cost associated with e-government by charging those
who are directly benefiting from the service. Ex. Application online have an additional service charge
(website fee)
 Outsourcing the production of certain online services. Example: in the US, servicearizona.com developed
and hosted by IBM, allows a customers to renew vehicle registrations online. “IBM gets 2% of the value of
each transaction.