A disheartening reality-check for the infrastructure boom in Brazil, now reduced to rubble and rust. While we have often discussed infrastructure as a basic economic good, inferior or incomplete infrastructural development may very well have the reverse effect.
These pieces from NYT’s Nadia Sussman, an eery video, and this companion piece from NYT’s Simon Romero (Photographs by Daniel Berehulak), a combination written and visual story, paint a vivid image of a nation striving to build the massive infrastructures similar to those of other nations, but at a time of stagnant and non-existent government budgets, all of which comes on the heels of planning for the World Cup in June, just a couple months away from the time this post goes up. We wrote about the economic impact of similar Olympic stadiums and even a bit on how we might think about their copious infrastructural leftovers.
The article reads:
The growing list of troubled development projects includes a $3.4 billion network of concrete canals in the drought-plagued hinterland of northeast Brazil — which was supposed to be finished in 2010 — as well as dozens of new wind farms idled by a lack of transmission lines and unfinished luxury hotels blighting Rio de Janeiro’s skyline.
Economists surveyed by the nation’s central bank see Brazil’s economy growing just 1.63 percent this year, down from 7.5 percent in 2010, making 2014 the fourth straight year of slow growth. While an economic crisis here still seems like a remote possibility, investors have grown increasingly pessimistic. Standard & Poor’s cut Brazil’s credit rating last month, saying it expected slow growth to persist for several years.