This is a MUST READ article from the FT. Check it out!
via IMF calls on Osborne to spend on infrastructure – FT.com.
I am delighted that the IMF has come around to my way of thinking. On this blog, I have been advocating, increasing spending on infrastructure, for the last two years. Sadly, I fear that George Osborne will still not listen.
Pingback: Dr Alf’s Two Cents: Against Stupidity, The IMF Itself Contends In Vain – Paul Krugman – NYTimes.com « Dr Alf's Blog
Pingback: Dr Alf’s Top Twelve Blogs – last thirty days « Dr Alf's Blog
Pingback: EU eases hard line on austerity – FT.com « Dr Alf's Blog
My worry is that this would increase debt – which, as you know, I feel is one of the causes of the present situation – with no guarantee that it will achieve anything. This is me at my most cynical (remembering the Humber Bridge amongst other white elephants) but I have no faith in government controlling big projects and even less in their ability properly to identify what is needed.Perhaps, this is a subject for another blog?
I empathize with your points.
If for example, the UK Government borrowed an extra £10 billion for infrastructure this year, they MUST indentify how and when funds will be repaid; this is the biggest fear of the Rubublicans in the US as well.
On the other hand, I agree that the government has a poor record in indentifying and controlling big projects; they would surely spend too much on consultants. One suggestion would be a project board with a majority of non-executive directors,
I understand your concern here. I would recommend a project board with a majority of external directors, including the chairman. The external directors should be hard-nosed independent professionals, with relevant experience, people like me for example!