Tag Archives: society

The Origins of Infrastructure

One of the great mysteries of humanity’s history is how we made the transition from an isolated, emergent species to attain today’s globally dominant civilization. Scientists tell us that the story began as early as 7 million years ago in Eastern Africa. Fossils found in the Awash Valley give evidence of our early precursors. Archaeological findings suggest that some of these precursors began to fabricate and use rudimentary stone tools between 6 million and 2 million years ago. Learning to control fire followed about 1 million years ago. By 70,000 years ago homonins had migrated out of Africa and begun to apply more complex technology evidenced in hafted spears, for which a sharpened stone point was attached to the wooden shaft.

The fossil record indicates that our own species, Homo sapiens, evolved during this progression and became the sole survivor among several homonin species. The evolution included a remarkable growth in brain size as well as emergence of social behavior and technological prowess. Some scientists hypothesize an interaction between physical capability and intellectual accomplishment to explain this evolution.

British archeologist Steven Mithen, for example, surmises that early uses of technology (such as hafting of spears) encouraged development of “cognitive fluidity,” an ability to abstract and combine aspects of experience from different domains such as finding shelter or observing game.  The large brain of Homo sapiens was an essential adaptation that enabled this cognitive fluidity to develop, but does not by itself explain how the development came to be. Adopting and using a cultural innovation provides the stimulus for users to extract more from their brains than they might have otherwise.

Drawing on observations of ants and other animals that exhibit eusocial behavior and altruism—in which some individuals in a colony or nest limit their own reproductive potential by raising the offspring of other nest-mates or defending the group against competitors and predators—noted Harvard biologist Edward Wilson suggests that certain “preadaptations” favor the behaviors’ evolutionary development. Among the most important of these preadaptations, Wilson conjectures, is a species’ propensity for living in defensible nests.  When early humans, tribal by nature, learned to use fire and establish campsites sufficiently persistent to be guarded as a refuge, they had taken a crucial step toward modern social organization.

Wilson and his colleagues Martin Nowak and Corina Tarnita assert that the advantage of a defensible nest located within reach of reliable food sources, particularly one requiring greater energy in its construction, is a crucial causative agent in the evolutionary development of eusociality, a trait that loosely applies to humans as well as ants. A next step in humans’ social evolution beyond the adoption of movable campsites would logically seem to be long-term commitment to a fixed location. The earliest evidence of such commitment arguably is found in the Chauvet Cave walls in southern France.  Images painted on the cave walls here and elsewhere (for example, the El Castillo cave in Cantabria, Spain, and others Romania and Australia) are estimated by various archeologists and methods be 28,000 to 40,000 years old.

We have no convincing evidence of the creators’ motivations for any of the cave paintings, but their permanence and often difficult-to-access locations suggest these were not simply decorations of living space, but rather demonstrations of a particular significance of place, perhaps an effort to preserve human memory as recorded history. I propose that in this sense these ancient markings are humanity’s earliest known infrastructure.

University of Cambridge archaeologist Graeme Barker has presented the evidence suggesting that the domestication of various forms of plants and animals evolved in separate locations worldwide, starting around 12,000 to 14,000 years ago.  For many researchers, this domestication is synonymous with “agriculture,” a technological innovation and foundation of modern civilization.  An alternate model proposed by David Rindos in the 1980s proposed that domestication of locally available plants, a co-evolutionary interaction of humans and their food sources, led to intentional agriculture and consequent selection of preferred species and strains.

This domestication of plants has been characterized as the beginning of the Neolithic or Agricultural Revolution.  Evidence, particularly from the Fertile Crescent region in the Middle East, indicates that cultivation was accompanied by construction of settlements and drainage ditches and landforms to control plant irrigation.  Archeological studies by Harvard archeologist Ofer Bar-Yosef and others are currently thought to indicate that the Natufian culture in the region is the world’s oldest example of sedentary settlements and agriculture, notable particularly because the settlements may have preceded the commencement of crop cultivation.

Whether development of agriculture preceded or followed the birth of cities has long been debated.  Mithan, for example, reflecting recently on the progress of human civilization, expressed a widely held view that agriculture came first, and once farming had originated, towns and cities appear to be an almost inevitable consequence.  On the other hand, Jane Jacobs, an economist and unabashed urbanist, famously argued in the 1970s that labor specialization and trade first gave rise to cities, and that feeding their populations necessitated the development of agriculture. (Archaeologists notably disagree. See Smith, Michael E., Jason Ur, and Gary M. Feinman.  2014.    “Jane Jacobs’s ‘Cities-First’ Model and Archaeological Reality.” International Journal of Urban and Regional Research 38 (4): 1525-1535.)

In either case, however, it would seem that infrastructure came first. The investment of effort in clearing fields; moving earth to adjust water flow; building fences, protective walls, and substantial shelters; maintaining paths for transportation; and the like would have contributed substantially to agricultural productivity, settlement economy, and social functioning of the residents.

Learning to Live with New Infrastructure Technology

The headline in The Atlantic, responding to an earlier article in the New York Times, asks the question, “Are we addicted to gadgets or indentured to work?”  (“Silicon Valley Says Step Away From the Device,” Matt Richtel, 7/23/2012, Business Day, New York Times.   “Are We Addicted to Gadgets or Indentured to Work?” Alexis Madrigal, 7/24/2012, The Atlantic. 

Matt Richtel, writing in The Times, reports that leaders at influential Silicon Valley companies are growing concerned about increasingly widespread addiction to gadgets.  Our attraction to smart phones, tablets, and on-line living, some say, reflects “primitive human longings to connect and interact” that threatens to take over our lives.  Next year’s edition of the authoritative Diagnostic and Statistical Manual of Mental Disorders, Richtel writes, is slated to include “Internet use disorder” in its appendix, indicating that the mental health profession thinks there may be a real problem but needs more research to understand it.

Responding in The Atlantic, Alexis Madrigal asserts the problem—for Americans, at least—is our slavish devotion to work.  We—or the upper middle class that reads the Times, at least—is working more and “having to stay more connected to work than ever before,” forced by employers (with the help of “our strange American political and cultural systems”) to be on the job 24/7. Citing both Mother Jones and McKinsey Quarterly as inspiration, Madrigal suggests that we need not simply to tear ourselves away from our electronic devices, but rather “organize politically and in civil society to change our collective relationship to work.,” adopting a more European perspective on our who controls our time.

Whether their myopia has an ideological or technological basis, both writers are overlooking the fundamental influence of our infrastructure.  In past decades motorized transport and telephone service dramatically reduced the influence of distance as an obstacle to economic and social interactions. The demands of maintaining international business networks and global supply chains shifted our ideas about “banker’s hours” and the sanctity of holidays and weekends.     Radio and television brought education and diversion, evolutionary emergence of “couch potatoes,” and threats to book and newspaper publishing.  These new infrastructures also supported and arguably accelerated dramatic expansion of the middle class and service sectors of the economy.  These changes went hand-in-hand with accelerating urbanization of our population and suburbanization of our cities.

As difficult as it may be to believe, digital wireless communication and the devices we carry to take advantage of this new infrastructure have become widespread in just about two decades.  The technology enables me and my colleagues—all of us somewhere well below the infamous top 2% of the income curve—to work from virtually anywhere and to shift working hours.  No longer must I take an entire day off to attend to medical appointments, to have my car repaired, or to attend my child’s school play.

I view this as new freedom rather than a grasping employer’s imposition. Many workers do not yet enjoy such freedom and, as in the past, some jobs are not suited to such changes of practice.

Recent statistics show an international trend of younger people being slower than preceding generations to get their driver’s permits.  Citing a study by the University of Michigan’s Transportation Research Institute, for example, MSNBC’s Paul Eisenstein reports that American teens are not rushing to get a driver’s license as soon as they become eligible, and that another study found similar trends in seven of 14 other industrialized countries.  (“American teens are waiting longer to drive,” Paul A. Eisenstein, 4/9/2012, MSNBC, Bottom Line)  In their own analysis, the Dayton Daily News found a 9 % drop in Ohio’s 16- and 17-year-old licensed drivers from 2006 to 2010, and a 4.7% decline in the number of Ohio 18-year-olds with licenses.

Analysts suggest the Internet, meaning particularly such new social media and communication applications as Facebook and text messaging, may be a key reason for the change.  Whatever the reasons, Eisenstein writes that auto company executives are worried that the trend may signal future declines in new-car demand.  Transit advocates are using the data to argue for higher government spending on urban public transportation systems.

How many hours we spend commuting, whether those hours can be used for anything other than steering and avoiding mishap, and whether the hours otherwise spent are counted as work or leisure are topics for another time.  Only consider for now the possibility that any purported addiction to gadgets and commitment work are simply short-term byproducts of learning to live with new infrastructure.

Are We Selling the Future Too Cheap?

Public concern and even occasional outrage over potholes, broken water mains, sewage spills, and closed bridges have been appearing with some regularity in the U.S. news media and blogosphere. Unemployment has been persistently high, particularly in construction. Interest rates have been at historic lows for several years. So why have we not seen an explosion of infrastructure investment?

Yes, we did have the 2009 American Recovery and Reinvestment Act (ARRA), meant to be a down payment on government action to modernize the nation’s infrastructure, enhance energy independence, and put people to work in the process.  The sudden spending sent government agencies scurrying for “shovel-ready” projects, but the law’s requirements that money be spent quickly precluded any real investment.

Before that, the sale to the private sector of long-term leases on the Indiana Toll Road and Chicago Skyway allowed the government sellers to redeploy some of the proceeds into new facilities, but no new resources were mobilized.

These instances notwithstanding, for the most part we have avoided what Adam Smith described as one of three duties of government, “the erection and maintenance of the public works which facilitate the commerce of any country, such as good roads, bridges, navigable canals, harbours” and the like. (The Wealth of Nations, Book 5, Ch. 1, Part 3)

Public works infrastructure, like a home, represents a commitment to the future.  We use  resources we have now to create something that we imagine will bring us benefits tomorrow.  For infrastructure, as for homes, we expect “tomorrow” to extend for decades.

An easily understood and accepted but nevertheless fundamental principle for making such investments is that we should get more benefits out of the infrastructure than the resources we have to put in for construction and and operation.  Putting the principle into practice, however, deciding exactly what resources we should invest and how, is not such a simple matter.  The future is uncertain.  People’s priorities change.  Our money, time, land, and other resources are limited.  We have many competing demands for using those resources.

So  it is not obvious if future benefits will be greater than the costs of a particular infrastructure investment. We need tools to help us decide.

One of the most widely used tools is “discounted cash flow” (DCF) analysis.  DCF is a way to compare costs incurred and benefits received over some defined time period to judge whether the total benefits exceed the total costs.

Essential to DCF analysis is the idea of a “time value of money,”  that everyone would prefer to have a dollar in hand today rather than waiting until next year for the same amount. We might be willing to wait if we were going to receive a larger amount, say $1.15. The idea is that funds to be received in the future are worth less than funds in hand today.

The measure of money’s time value is the “discount rate,” conventionally the percentage reduction in value per year of waiting.  In the example above, the discount rate is 15%.

Discount rates look a lot like interest rates, the rate to be paid for a home mortgage, for instance, the rate that what banks charge for credit-card loans, or what bondholders receive for lending their money to a corporation. In fact, there is not much difference, except that interest  rates really apply to money only.

Discounting is applied to many benefits and costs to which we assign monetary values. For example, we discount the value of time commuters will save over the next 15 years to a supposedly equivalent present amount to justify building the extra highway lanes that we expect will speed travel.

When the discount rate is larger, investments not likely to yield returns until many years after resources are invested look less attractive.  When the rate is smaller, future returns look more valuable in the present.  Most of the time, the very long time periods over which we expect to realize the benefits of physical infrastructure–three to five decades and longer–do not count for much in the economic analysis because the discounted present values are low. Given a choice between a short-lived but high-benefit investment (attracting a major sports event, for example) and a steady but lower annual return over many years (a new rail transit line, perhaps), high discount rates favor the former.

Very low interest or discount rates should then encourage investment in infrastructure.  For a variety of reasons, U. S. interest rates have been at historic lows for several years. In addition, expressions of public concern and even occasional outrage over potholes, broken water mains, sewage spills, and closed bridges appear with some regularity in the news media and blogosphere.

So, once again, why are we not seeing an explosion of infrastructure investment?

People are thinking about infrastructure as if there will be no tomorrow.  Interest rates may be low, but the discount rates people are using–subliminally–to assess their investment opportunities, are a lot higher.

People who study such matters suggest that rates have three components.  The first component is in fact a financial market interest rate representing the payments that presumably very reliable borrowers—governments and their central banks, for example—must make for the privilege of using other people’s money.  The second component represents a premium presumed to compensate for a possibly less reliable borrower and what risks the lender potentially faces related to the conditions of lending, such as the length of time until the loan is to be repaid and whether the lender has offered any security—the house in the case of a mortgage loan, for example.  The third component is meant to account for the uncertainty of future events and the risk that events will make it  impossible for the lender to recover fully the amount lent.

So if the public loses confidence that people responsible for infrastructure are not likely to be reliable stewards over the coming decades, they will insist on higher rates of return, discount rates. If they feel that the future is less certain to be like the conditions of the past, they will look for a higher discount rate. Sea levels rising, financial crises, political gridlock: higher discount rates demanded.

But we do not have to be paralyzed by such uncertainties. The creators of Iran’s qanats that still supply municipal and agricultural water after nearly 3 millennia, China’s Great Wall, Paris’ Notre Dame Cathedral, and even such recent works as the Panama Canal and the Golden Gate Bridge would not have persisted without a vision that they were building for a long-term future.  We should not discount so deeply our own future.

Is humanity sustainable? (Principles for ecostructure)

The idea of sustainability has clearly taken root.  The word appears frequently in print as well as Internet media, and national governments around the world have established agencies and programs devoted to it.  There seems to be widespread agreement that the idea has something to do with energy supplies, environmental impact, and economic growth, and perhaps with inequality, social engagement and political stability, but the practical scope of the idea and meaning of the word seem to vary from one forum to another.

An important early appearance of the meme, if not its initial source, is often attributed to the World Commission on Environment and Development, commonly known as the Brundtland Commission.  This group of international experts was convened by the United Nations in 1983 to propose long-term environmental strategies for achieving sustainable development; recommend ways that concern for the environment may be translated into greater co-operation among countries; and help define shared perceptions, aspirational goals, a long-term agenda for action.  The Commission’s 1987 report, Our Common Future  suggested that “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” We lack agreement among nations, regions, and generations as to what may be our needs.

In addition, the time scale for thinking about our sustainability far exceeds our abilities to plan and take meaningful action. Scientific evidence suggests that the biological genus of which humans are a part evolved into being and the first hominid use of stone tools began in Africa perhaps 2.5 to 3.5 million years ago.  Evidence of homo sapiens sapiens, our particular species, dates back about 250,000 years.  (In all of this, my phrasing is meant not to convey any skepticism, but rather to acknowledge that we rely entirely on inference from the limited data available to us to draw conclusions about past events and conditions.)

Our various experiments in culture, social, and political organization are rather brief when seen in sharp contrast with these time periods. Estimates of age of the oldest cave paintings are 35,000 to 40,000 years, and stabile human settlements perhaps 4,000 to 6,000 years. Much of the Earth is marked by the remains of human activities that have not survived to present times.  Against the backdrop of human history,  what does sustainability really mean? Probably the best we can do in light of such evidence is to limit our perspectives to decades, but even that span appears optimistic for many government programs.

Of course, our values, technologies, and culture may change for good reasons from place to place and time to time. Our numbers continue to increase, as do our technological capabilities. We learn more about pollution and pesticides and the limits of our resources.  Our values and comprehension of our own wellbeing evolve. It seems quite likely that we simply cannot do anything to meet our own present needs without in some sense compromising the options available to future generations.

A few useable principles nevertheless may increase the chances of humanity’s long-term survival and flourishing, and these principles seem essential to the concept of ecostructure:

  • Use only renewable resources: No matter how large the supply reservoir may be, it will eventually be exhausted.
  • Eliminate all waste and pollution: What economists refer to as residuals are simply an indicator of inefficiencies in a production processes.
  • Stabilize our population: Increasing humans’ wellbeing and chances of survival as individuals and as a species depends ultimately on enhancing labor productivity as well as on applying strictly the first two principles.

Infrastructure principles to live by

As a child fascinated by tales of exploration and archeology of the artifacts of Egyptian, Greek, Roman, and Incan civilizations, I built models of balsa-wood and modeling clay to recreate in my room the temples and fortresses pictured in my books.  I channeled my university studies toward building things, the bigger the better, I thought, as my training progressed.  In graduate school I encountered Albert O. Hirschman, a Harvard economist whose seminal  book introduced me to the ideas of social overhead capital—the etymological precursor of what we mean today by economic or societal infrastructure—and its essential role in economic development. (1958, The Strategy of Economic Development, New Haven: Yale University Press)  I wrote a doctoral dissertation on “systems of constructed facilities,” and from there moved on to planning and design of new cities, airports, highways, and investment policy.  I guess it is fair to say I have been interested in infrastructure for a while, and maybe a wonk on the subject.

In any case, I was excited by the opportunity in 1992 to work with a National Research Council committee seeking to gain an understanding of what might be done to address the problems underlying the nation’s increasingly distressing instances of infrastructure inadequacy, failure, collapse, and destruction.  The group spent more than a year talking to people from cities around the country and extracting from their experience a set of three broad principles for acting locally to address what were agreed to be national and even global problems. (The committee’s report was published as In Our Own Backyard: Principles for Effective Improvement of the Nation’s Infrastructure, 1993; Washington, DC: National Academies Press)

The principles themselves are fairly straightforward, albeit cryptic: (1) Geography matters. (2) The paradigm is broadening. (3) Value the “public” in public works.

My interpretation has perhaps shifted in the years since we wrote the report.  First, infrastructure should be tailored to the specific physical, environmental, social, and economic characteristics of the area to be served.  However, these various characteristics are connected in complex ways that make the tailoring difficult, and we need good data to achieve a good fit.  Second, all infrastructure has to be understood as providing multiple services, having not just a single function.  Thinking that our highways simply let us move from place to place and water systems only provide a clean supply when we turn the tap is—pardon the possible pun—tunnel vision; we need to broaden our perspectives in funding, designing, and operating each piece of infrastructure and address the system the pieces comprise.  Third, the public is a part of the infrastructure, not simply a customer, investor, or impediment. We as a society and our infrastructure are engaged in an evolving dialogue; the better we understand our role in that evolution, the more likely it is that future generations will appreciate the legacy of our infrastructure investment.

Two decades later, I think these principles are still relevant and important.  They are also, unfortunately, no more representative of current practice than they were when written.

(A footnote:  In the course of earlier work for the National Research Council, I found that the word “infrastructure” itself was hardly used at all before 1980. (For example, see Infrastructure for the 21st Century: Framework for a Research Agenda, 1987.) Typing it into Google’s search field today returns some 270 million hits.  “Social overhead capital,” has not caught on with the Internet public, showing up not quite 8.1 million times.  “Principles of infrastructure” returns some 1.82 million hits. Narrowing down to “principles of economic infrastructure” yields 315,000; replace “economic” with “societal” and you drop to just over 9,000.  For comparison, “ten commandments” gets 4.4 million hits and “principles to live by” 820,000!)

Sustainable Values and Infrastructure

There seems to be little question that we are now in one of those historically recurrent periods of societal crisis that tell us we must change our ways.  A plethora of recent books present dismal perspectives of our clash of cultures, changing climate, losses of species and languages, and financial crises, and how each threatens our well-being and lastingness.  The threats are very real, of course, but to me are interesting because, if relief is to be found, surely our infrastructure must have an important role.

Seeking to understand this role, I have finally plowed my way through Raj Patel’s modestly titled exegesis on modern economics and human nature, The Value of Nothing: How to Reshape Market Society and Redefine Democracy. (2009, New York: Picador)  With ample reference to both foundational and more radical texts of market economics and Western social theory as well as more personal accounts of current populist movements, the book has definitely generated buzz and expanded its author’s reputation to sometimes messianic proportions.  (For a review, see “Are You the Messiah? A political economist gets a following he wasn’t expecting,” by Lauren Collins, New Yorker magazine, November 29, 2010)

The reading took longer than expected, because as page after page turned I felt compelled to pencil in questions, opposing references, and outright objections to Patel’s perspectives. Where he sees elemental democracy in the masked pronouncements of a Zapatista Junta, I see the tyranny of the mob. When Patel disparages the possibility of getting prices right—or having any prices at all—for clean air and water, I despair at the idea that humans will forsake the desire to improve their lives, however privileged they may be, satisfied that their needs—defined by others—are being met. While Patel finds it essential to feed the world’s growing population by rationing necessarily limited food production, I wonder why humanity might not be happier and arguably better off limiting population to levels supportable with an abundant and varied food supply.  I suppose I must recommend the book at least because it offers the attentive reader ample intellectual stimulation.

Patel’s message seems to be that for two key reasons a market-based, democratic society is essentially unsustainable and revolutionary change is essential. First, there is no hope of getting the prices right for clean air, pure water, cultural diversity, historic associations, and myriad other resources we humans use in pursuit of comfortable lives. Second, our abilities as humans to work together toward success in this pursuit are hopelessly subverted by the existence of corporations, disembodied entities that behave with the legal rights and powers of a person but lack a person’s moderating moral and ethical judgment.   Without the restrictive forces of either appropriate prices or moral imperatives, corporations and people ruthlessly seek exclusive control of collective resources and private gain from exploitation of these resources.

Hope lies, for Patel, in a Buddhist theory of value.  “The real value of something,” he writes, “is not its ability to satisfy a craving, a desire, a vanity, but to meet the need for well-being.”  With enlightenment, we will recognize that our desire for cell phones, shoes, and other such “baubles and fripperies” is nothing but illusion created by hidden persuaders.  Corporations will somehow adapt, I suppose, and we will lose our lust for more, all settling happily for just “enough.”

British economist Diane Coyle’s book The Economics of Enough: How to Run the Economy as if the Future Matters. (2011, Princeton, NJ: Princeton University Press) takes a similar stance on the problems but offers a more moderate assessment of the underlying issues and, to my mind, a more practical prescription for what must be done.  She focuses her attention on the inevitable necessity of making tradeoffs among efficiency, fairness or equity, and freedom in how people are able to pursue and manage their resources.  Our values and our governance, as individuals and groups within our society, determine how the balance is struck, and today we have “tilted too far”—in Coyle’s view and my own—“in favor of individualism and the gratification of immediate wishes,” toward freedom at the expense of fairness and even efficiency. Where previous generations made investments, we now are consuming our assets.

Regarding values, Coyle’s views are not so different from Patel’s: We need a change of values to guide our behavior.  In Coyle’s analysis, however, a revival of what Max Weber termed the Protestant ethic, principles that guided people to work for the future rather than immediate gratification, could be effective.  Neither author has much to say about how we are to decide what is “enough” for individuals and groups in a pluralistic society. Patel would no doubt be the more austere judge.

To Patel’s call for changed values, Coyle adds changes in measures of achievement and in our institutions of governance.  The ways we measure economic growth, productivity, and well-being are simply inadequate for dealing with our growing understanding of the importance of intangibles. With the revolution in information and communications technologies, services account for an ever larger share of production; we do a poor job of measuring  quality of services, and the shortcoming is especially severe regarding what we term quality of life matters.  The  technology revolution is also transforming how individuals, corporations, and political entities relate to one another. Coyle imagines that societal decision making can be shifted from centralized agencies to “involve a more productive  and thoughtful interplay between markets and governments than we’ve typically had in the past…”, but here I could not quite make out her image of that future. Perhaps she envisions social networking platforms supporting grass-roots participation, a sort of Swiss direct democracy via telethon or Facebook.

Development of such a participatory system would certainly signal the integration of a new set of technologies into our infrastructure.  In past decades, new infrastructure technologies have been accompanied by—and arguably enabled or perhaps caused—changes in how society operates. Rail and then highway transportation changed the patterns of human settlement; piped supply of clean water changed the way households operate.  These changes in turn have been accompanied by changes in our fundamental values, on the scale contemplated by Patel and Coyle.  If we are to have the change in values these authors argue we need for a sustainable future, then I believe we must expect to reshape our infrastructure.