What is the reason that the share of power
and telecommunication infrastructure
is greater in high-income countries?
Answer & explanation
Correct answer: option 1
In any country, as the
income rises, the composition of
infrastructure requirements changes
significantly. For low-income countries,
basic infrastructure services, like
irrigation, transport and power, are
more important. As economies mature
and most of their basic consumption
demands are met, the share of
agriculture in the economy shrinks and
more service-related infrastructure is
required. This is why, the share of power
and telecommunication infrastructure
is greater in high-income countries.