Building Super Infrastructures for sustainable development and its effects in the economy

Abstract

The objective of this study is to examine the importance of building super infrastructures by enhancing environmental quality and thus promoting sustainable development in the economy. The study is based purely on theoretical ground and employs macroeconomic equilibrium analysis. The findings suggest that if a nation pays proper attention to its environmental quality, prevents contamination of air, water and food chain and protects habitats, natural beauty and preserves natural resources from pollution while building its super infrastructures by pursuing interest free Istisna’a based monetary policy (MP), the nation can easily achieve potential real GDP and full employment. But if the nation builds its super infrastructures by incurring huge debts, and pollutes the environment, contaminates air, water and food chain, the country will inflict permanent damages to the economy and in the long run, the country can not achieve full employment and even the production possibility frontier (PPF) may shift to the left. This study will illuminate and shed lights on the importance of protecting environment while building the super infrastructures for sustainable development, progress and prosperity.