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country, or part of it, which make economic and social activities possible by providing transportation, public health and education services and buildings for community activities. Railways, airports, hospitals, schools, roads, sewerage systems and reservoirs constitute the major types of social capital. Although in the nineteenth century many of these were financed privately (e.g. the railways), after 1945 in many countries most infrastructure investment has been the responsibility of the public sector. Countries with the poorest infrastructures are either those with low per capita incomes, i.e. the less developed countries, or those with governments practising LAISSEZ-FAIRE policies which seek to minimize the role of the state.

productive potential (04)<br />The maximum growth rate of a country extrapolated from past trends. It is measured by considering both the growth rates of the supply of factors of production (labour and capital) and the PRODUCTIVITY of those factors_<br /><em>See also:</em> natural rate of growth; potential output

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