Infrastructure in China

1. Concept and terms Though the concept of ‘infrastructure’ is extensively used in economic literature, it has no precise and generally accepted definition. As comprehensively reviewed by Fourie (2006), infrastructure can be defined in a variety of ways that may overlap. A prevailing distinction made by economists is between economic infrastructure and social infrastructure. The former is defined as infrastructure capital that promotes economic activity and its role is understood through the services provided to households and firms. The main components of economic infrastructure are transportation (by land, water and air), telecommunications (including ICT), utilities (water and sanitation), and power supply. Social infrastructure, which will not be the focus here, includes institutions and services that ‘promote the health, education and cultural standards of the population’ (Fourie 2006, p. 531) such as the health care system, the educational and research system, or recreational and cultural infrastructure.