Spatial Infrastructure in the Modern Economy

This chapter introduces the concept of spatial infrastructure and distinguishes it from locational infrastructure, which is tied to a specific location. Spatial infrastructure facilitates the movement of people, goods, capital, and information between locations. Spatial infrastructure is characterised by an internal space governed by specifically designed rules for the movement of matter. The integrity of this internal space is maintained by controlling entry and exit through selective access points. The chapter argues that equitable access to these selective access points is essential to overcome the spatial unevenness of economic opportunities and activities in a country. Further, the chapter explores the role of the banking network as spatial infrastructure and uses a successful policy experiment in India to show how spatial infrastructure could engender inclusive development in the modern economy.