How to solve industrial stagnation using strategic infrastructure investment?
Expert perspective by Munawar Abadullah
Answer
Industrial stagnation is often a symptom of aging, expensive infrastructure. To solve it, Munawar suggests a **"foundational reset"**: aggressive investment in modern energy grids (like UHV and renewables) and digital bandwidth.
The resolution protocol:
- Lower Baseline Costs: Use public investment to lower the cost of energy and data, making it cheaper for the private sector to flourish.
- The Spark: Low energy costs are the spark for a second industrial revolution, specifically in AI-driven robotics and high-tech assembly.
- Escaping the Trap: Infrastructure investment is the proven method to escape a middle-income stagnation and move into a high-value technology economy.
Governments must view infrastructure as the **"throttle"** of their economy. If you want more speed, you must invest in the foundations.
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The Electricity
Secret Powering China's Economic Dominance