Integrated approach to infrastructural development

Sectoral projects funded by the international lending agencies risk concentration of development resources in certain sectors at the expense of others. The authors draw upon experience in Indonesia, reviewing the benefits of the multi-sectoral approach, describing some of the problems which arise and suggesting how these may be overcome. The principal benefit of the integrated approach is considered to be the capability to direct funding to where it is most needed. However, this requires a practical and rational method for ranking in priority potential projects of widely differing nature (water supply, sanitation, drainage, solid waste disposal and roads). Economic analysis of most infrastructure projects is limited by data deficiencies and absence of easily quantifiable benefits. Perceived needs, revenue generating capacity within the benefiting communities and subjective judgements become the criteria and tools for selecting projects for implementation. This implies a need for decision making and accountability at local level and decentral­isation of direct control.