Thread by @NiskanenCenter

NEW PAPER via @Alon_Levy: Why is American infrastructure so expensive?

We have urgent infrastructure needs. Meeting those needs would create jobs.

But not until we stop making critical mistakes. So let’s look at what other countries are doing right. 1/
niskanencenter.org/report-so-you-…

Infrastructure creates more long-term productive potential for the economy and society. It improves productivity and living standards. But most countries spend a fraction of what the U.S. does, with better results. 2/

First, U.S. infrastructure is too slow. In 2009, the American Recovery and Reinvestment Act sought to tackle infrastructure projects but was plagued by extremely slow lead times and massive delays. This is mostly thanks to U.S. red tape. 3/

Even without the delays, projects could be sped by (1) increasing state capacity...specifically expanding the in-house design teams of state governments so that they can handle large projects. Too often the U.S. emphasizes cutting costs...at the expense of success. 4/

(2) Speeding up planning and construction. Low-cost countries do this by selecting contracts based on the time it takes to complete them and their technical merit...not just picking the lowest-cost contractor. Time IS money. 5/

Related, this process of selecting contracts can reduce red tape and improve cooperation between public and private sectors, preventing contractors from bidding low and doing poor work. Contracts should be itemized, specifying how much labor and materials are required. 6/

Civil servants, not elected officials, should be empowered to oversee the projects, so that administration changes don’t disrupt projects, and so that funds won’t be directed in politically-charged ways. 7/

Finally, the U.S needs to cut the costs of its infrastructure. There is NO reason U.S. subways should cost $400-$800 million per km while the global average is $250m. @brianmrosenthal details the reasons the subway is particularly expensive in NYC. 8/ nytimes.com/2017/12/28/nyr…

The U.S. can cut infrastructure costs by reducing overdesign (to accommodate obsolete rules and regulations), improving project management, reducing the influence of temporary political appointees, etc. 9/

These are some broad-brush areas where the U.S. can improve the speed and quality of its infrastructure projects, but the full paper has a complete set of recommendations. Check it out here. 10/10
niskanencenter.org/report-so-you-…