Making the best of a bad situation- will the UK build their way out of the current economic crisis| Banking Direct

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Making the best of a bad situation- will the UK build their way out of the current economic crisis

While many financial experts shy clear of comparing the first major global financial crisis of the 21st century to the great depression of the nineteen thirties, one comparison that will soon be inescapably drawn is the Western World's growing initiative to invest money in creating jobs through the initiation and financing major infrastructure projects. It would appear sound fiscal sense when the Government is under such crushing financial pressure to actually draw in the fiscal belt as tight as possible. However there are many existing infrastructure projects that have been put in mothballs my private sector contractors that the government could either re-instate as a sole investor or in a partnership.

These kinds of measures will provide two advantages:

To protect jobs and create new ones while at the same time supporting economic growth during the recession.
Bring to life many important infrastructure projects, such as renewing London's archaic sewage system, which has been left to deteriorate for the last 150 years.

The means to finance such projects can come from partially taking up funding from various government departments as well as part of Gordon Brown's stimulus plan. With unemployment now at the two million levels, and the inevitability of the figure reaching three million by the end of this year, analysts are asking the leading question that a pretty large proportion of these good people should be able to find them a niche in the construction industry by finding themselves a niche in these projects

Suggestions are that the Treasury will announce their intentions to provide raise additional finance ,initially to safeguard some of the thirteen billion pounds tied up in existing projects under the Government's Private Finance Initiative, an existing scheme where private investors partner with the government to complete large scale infrastructure projects.

It would appear that finance and management for such projects will be handled by an autonomous unit, which will be established specifically to handle such projects, as well as examining the feasibility of future infrastructure projects.

Civil engineers, particularly hard hit during the slump in the private and commercial building sectors will particularly welcome the initiative, with more than 20,000 trained, talented and qualified people finding themselves unemployed within the last 12 months.

With the 2012 Olympics to be held in London drawing closer, there will be no shortage of projects to be embarked upon, from rail and road systems as well as the Underground railway system which seems to be in much need of refurbishment.

With the financial situation in the UK seemingly reaching rock bottom, taking the public morale with it, it may be just the boost that is needed to instead of wallowing in self pity, to create jobs as well as financing much needed large scale building projects throughout the country. Hopefully when the dark clouds clear from the current crisis, the British public will be able to rub their eyes in the wonder of the many major state of the art construction projects carried out in the face of adversity.