Underinvestment
in sentence
43 examples of Underinvestment in a sentence
Developing countries, once they enter rapid-growth mode, generate growth from capital deepening via investment, in a sense making up for past
underinvestment.
But, after a long period of price controls and massive underinvestment, domestic demand in Argentina was far outpacing supply.
Everyone knew about the underinvestment, over-exploitation, and lawlessness that characterize Putin’s Russia, but no international power was interested in discussing, let alone combatting, it.
A new reckoning is warranted, one that accounts for the full costs of
underinvestment
in terms of foregone employment and growth.
A broad pattern of self-insurance caused by
underinvestment
in resilient infrastructure is an inefficient and distinctly inferior option.
Underinvestment
in infrastructure (including deferred maintenance) is widespread where the consequences are uncertain and/or not immediate.
In reality,
underinvestment
and investment with debt financing are equivalent in one crucial respect: they both transfer costs to a future cohort.
With Germany’s digital start-ups stifled by overregulation and underinvestment, dinosaurs from the analogue world set the policy agenda.
But replacing private insurance with public insurance has its own problems: consider the parlous circumstances in which Britain’s National Health System finds itself, the result of generations of politically driven
underinvestment
in health care.
This ignores the fact, highlighted by a recent study by Guntram B. Wolff, that Germany’s current-account surplus is the result not of aging households’ frenzied desire to save more, but of
underinvestment
by businesses seeking to resist wage pressure.
They arise mainly from an increasingly integrated global economy’s shifting technological landscape; but they have been exacerbated by a systematic pattern of public-sector
underinvestment.
The lesson from many developed and developing countries is that
underinvestment
in infrastructure, human capital, institutions, and the economy’s knowledge and technology base reduces long-term growth.
The resulting
underinvestment
and depreciation of the global economy’s asset base are suppressing productivity growth and thus undermining sustainable recoveries.
It encourages overconsumption, underinvestment, and rising unemployment in a rapidly aging society, and in a world that can make tremendous use of China’s high saving and industrial capacity.
Trade times and costs are unnaturally high due to unintegrated and lengthy border procedures, high tariff rates, corruption, and
underinvestment
in transport infrastructure.
Several more narrowly economic issues – for example, defective growth patterns,
underinvestment
in tangible and intangible assets, and the absence of reforms designed to increase structural flexibility – remain a cause for concern, because they underpin subpar growth.
Hansen predicted that capitalism would suffer from a permanent
underinvestment
crisis.
And a slowdown in productivity growth, together with excessive leverage and persistent public-sector underinvestment, may be undermining medium-term potential economic growth.
Second, achieving full potential growth requires that the widespread pattern of public-sector
underinvestment
be reversed.
And those familiar with growth in developing countries know that
underinvestment
in human capital, infrastructure, and the economy’s knowledge and technology base eventually produces balance sheets that cannot support continued growth.
Allowing the world’s “natural capital” – the resources and ecosystems that underpin these systems – to be depleted is essentially another form of destructive
underinvestment.
The problem with inequality is not only that it obstructs the pursuit of collective goals and the common good; it also erects structural barriers to development, for example, through meager or regressive taxation and
underinvestment
in education, health, or infrastructure.
One explanation is that the advanced economies had taken on too much debt and needed to deleverage, contributing to a pattern of public-sector
underinvestment
and depressing consumption and private investment as well.
Beyond public-sector underinvestment, there is monetary policy, which, whatever its benefits and costs, has shifted corporate use of cash toward stock buy-backs, while real investment has remained subdued.
From the standpoint of growth and employment, public and private debt masked an absence of productivity growth, declining competitiveness in the tradable sector, and a range of underlying structural shortcomings – including labor-market rigidities, deficiencies in education and skills training, and
underinvestment
in infrastructure.
Underinvestment
has long-term costs and consequences everywhere.
Electricity on the island is significantly more expensive than in Florida, in part because of
underinvestment.
That brings us to the third factor behind the global economy's anemic performance: underinvestment, particularly by the public sector.
Indeed, there is a looming risk of secular stagnation in many advanced economies, owing to the adverse effect on productivity growth of years of
underinvestment
in human and physical capital.
The historical reference was to the moment in 1814 when
underinvestment
in the federal government's military capability allowed the British to seize Washington, DC, where they burned most official buildings, including the White House (and the Treasury and Congress).
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