Infrastructure inequities and its effect on poverty reduction across regional states in Ethiopia

Abstract

Abstract Sustainable development aims to enhance the quality of life in an inclusive manner, including economic prosperity, social equity, and environmental protection. Megaprojects are ‘large unique projects’ where public actors play a significant role and are often the conduit of corruption, and eradication of corruption is one of the critical challenges in most parts of the world, particularly the developing countries. Besides, corruption in construction can decrease the efficiency, effectiveness, and equity of infrastructure and services, resulting in the execution of ‘white elephant’ projects that are neither growth-inducing nor relevant to needs. Therefore, lack of access to roads, electricity, mobile phones, and the Internet limits the potential earnings of modern accessibilities and facilities in developing countries, and it also has a negative impact on poverty reduction. Although there are high perceptions about infrastructure inequity in Ethiopia, the difference between relatively developed and underdeveloped regions or states is not clear, especially in the equitable allocation of infrastructure resources. By analysing regional infrastructure, the states are categorised based on the results of the Composite Infrastructure Index, thereby exposing the unequal distribution of infrastructure and services. This paper shows gross inequity of public investments in Ethiopia, hindering the country's nation-building process. In substantially unequal societies, elite groups are more able to manipulate and influence policymakers to their advantage. Understanding the nature and extent of regional inequities in Ethiopia, as exemplified by regional infrastructure differentials, and finding sustainable solutions is imperative to socioeconomic development and shared prosperity.