Importance of Infrastructure to the economy

The development of Terminal 2 at Dublin Airport contributes hugely to Ireland’s infrastructure. Infrastructure describes essential facilities, services, and organisational structures needed for a country to operate efficiently. It includes roads, bridges, transport systems, airports, ports, utilities, water, sewage, etc. These facilities are essential for enabling productivity in the economy. Developing infrastructure often requires large initial investment, but the economies of scale tend to be significant. Having the infrastructure in place that allows the transportation system to move people and goods – quickly and reliably – is crucial to Ireland’s competitiveness, as:

  • Infrastructure is directly related to productivity e.g. congestion takes a major economic toll as it slows movement of people and goods and impacts productivity.
  • Good infrastructure attracts foreign investors.
  • Effective infrastructure is vital for development of tourism and enhances Ireland’s reputation abroad.
  • Modern infrastructure creates employment opportunities and attracts skilled knowledge workers.


  • Describe the local transport infrastructure in your area.
  • Choose a building that you are familiar with (e.g. airport or bus station) and answer:
    • Who are the customers in this building?
    • What do you think their needs are?
    • Do you think the building meets customer requirements? Give details.
    • How would you improve the building?