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Infrastructure Is Critical to Sustained Economic Development in the Global South – Here’s Why

Infrastructure Is Critical to Sustained Economic Development in the Global South – Here’s Why. Infrastructure Is a Force Multiplier for Foreign Direct Investment.

Published

2 years ago

November 24, 2021

TwinzTech

It’s not overstating things to say that the world depends on infrastructure. Without ports, railways, roadways, airports, bridges, utilities, and the like, business doesn’t get done.

In much of the world, the infrastructure conversation revolves around maintaining or upgrading what’s already in place. The United States hasn’t built a major new commercial airport in nearly 30 years, and even ground-based transportation infrastructure is challenging to complete due to ballooning construction costs and onerous approval processes. (New York’s 1.8-mile Second Ave Subway is widely regarded as the most expensive rapid transit project ever constructed on a per-mile basis.)

Of course, high development costs and permitting issues aren’t unique to first-world countries like the United States. They affect infrastructure projects in the developing world as well. But, by definition, building new infrastructure is more critical in the underdeveloped economies that collectively make up the “Global South” than in Europe, the United States, and other high-income parts of the world.

Unfortunately, key stakeholders don’t always fund badly needed infrastructure in places like Africa, Latin America, and Central Asia. Here’s why they’d do well to remove barriers to innovative development.

Table of Contents

1. Infrastructure Is a Force Multiplier for Foreign Direct Investment

Modern physical infrastructure is a vital precursor to local economic development. It’s also a force multiplier for foreign direct investment. To many international businesses and high-net-worth individuals, infrastructure quality is a make-or-break factor in developing-economy investment decisions.

Recent infrastructure development in places like the Southern African Development Community (SADC) confirms this thesis. From 2016 on, foreign direct investment in the SADC’s logistics infrastructure increased sharply, spurring private investment in related projects as the decade drew to a close.

“From warehousing and last-mile fulfillment to the road, rail, and port infrastructure, these investments underpin an increasingly stable and prosperous regional economy,” writes Christopher Roy Garland, a business advisor and economic development expert based in Botswana.

2. Infrastructure Improvements Brighten Prospects for Local Entrepreneurs

Infrastructure improvements don’t only redound to the benefit of foreign governments, grantmaking organizations, and international conglomerates. The biggest beneficiaries are often local entrepreneurs who secure contracts with these organizations and develop businesses downstream of their activities.

Vibrant entrepreneurial communities take decades to build. Once they’re present, however, they’re vital assets for their host countries. Their market activities support growing middle classes, which in turn help consumer economies that spur further local investment. And by employing unskilled and semi-skilled workers in their home countries, they provide an under-discussed but crucial political function, boosting economic morale and dampening potential sources of social instability.

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2. Infrastructure Investment Provides Sponsor Nations With Political Leverage

Initial investments in large-scale infrastructure projects in the developing world very often do require active outside stakeholders. China’s Belt and Road initiative is merely the highest-profile example of concerted developing-world infrastructure investment as a more prosperous nation’s foreign policy project. The United States has USAID; other advanced economies make an intentional foreign direct investment for political purposes.

Like it or not, this is the global state of affairs in the early 21st century. It’s the sincere hope of most global development stakeholders that policy-driven FDI will one day cease to be a driving factor in developing-world infrastructure investment. Still, that day remains well over the horizon.

4. Stable, Prosperous Economies Enable Geographic Diversification for Risk-Averse International Investors

As the saying goes, a rising tide lifts all boats. When the groundwork laid by targeted infrastructure investments succeeds in stabilizing a country’s politics and raising its ceiling for economic growth, a broader class of risk-averse global investors takes notice.

These investors, both retail and institutional, vote with their dollars. They place bets on the economic future and create virtuous feedback loops for developing economies.

They also pave the way for other investors for whom geographic diversification is essential only when achievable without undue risk. And that’s the point at which a country or region can say, “Yes, we are open for business.”

5. Better Infrastructure Means Shared Prosperity

The history of the past 200 years would likely have been very different for European and North American nations without sustained public and private infrastructure investment in those parts of the world.

When some future generation looks back at our moment in time, let’s hope they’ll have something similar to say about the trajectory of infrastructure investment in the developing world. Let’s hope they’ll see a sustained and fruitful campaign to unlock the economic potential of dozens of nations and billions of individual humans.

Let’s hope. And let’s work together to make it happen. Because better roads, bridges, ports, broadband — these are the raw ingredients for a more prosperous and productive future. We owe it to generations to come to invest today.

Automotive

How has car rental management software revolutionized the industry?

Car rental management software allows for minimizing risks and preventing financial losses through certain features, such as maintaining a database of client drivers, managing fines, tracking instances of dangerous driving, and preventing unauthorized access to the vehicle.

Published

6 days ago

June 2, 2023

TwinzTech

In recent years, the car rental business has been rapidly developing in many countries around the world. This service is particularly in demand in large cities, where residents increasingly prefer various car rental options over purchasing their own vehicles.

Clients of car rental services enjoy several significant advantages: renting a car is cheaper than regularly using taxi services, and much more convenient than relying on public transportation. Additionally, users are not required to spend a huge amount of money on buying a personal car, taking care of registration and insurance, regularly refueling and repairing the vehicle, or purchasing parking spaces. These responsibilities are taken care of by the rental company.

The development of the car rental business is also influenced by broader factors. Firstly, there has been an increase in the number of tourist and business trips in recent years. Secondly, consumers increasingly value mobility and flexibility, which contributes to the growing demand for rental cars. Thirdly, many countries worldwide are paying significant attention to ecology, and shared transportation partially helps reduce carbon footprints and utilize resources more efficiently.

However, perhaps the key factor is the rapid advancement of internet technologies and online platforms. It is not just about improving the user experience but also the emergence of digital solutions for businesses. For example, the implementation of specialized car rental management software has revolutionized the industry.

Many companies have been able to simplify and automate their workflows, save significant resources, optimize budgets, and take their businesses to a new level.

Table of Contents

1. Understanding car rental management software

Car rental software is a software system specifically designed for efficient management, control, and business development in the car rental industry.

The functioning principle of a car rental system may vary depending on its type, set of features, client preferences, and other factors. Among car rental software options, the following are distinguished:

Personalized and package systems. The owner of a car rental business can order the development of a custom software solution from scratch. Such software takes into account all the specific needs of the company and the client’s preferences. Typically, the development of a personalized system takes more time and is more expensive, but in such cases, the efficiency of using the software will be maximized. A more cost-effective option would be to acquire a package solution, which includes a fixed set of functions necessary for managing the car rental business.

Specialized and universal software. There are many universal systems available on the market for business management. Typically, such software has a basic set of functions, for example, it can be used for financial operations, organizing and storing important information, and interacting with clients. However, specialized software provides an advantage to owners of car rental companies because these programs are developed with the specific characteristics of this business in mind.

Boxed and cloud solutions. Depending on the method of data storage, there are cloud-based and downloadable systems. Standalone or so-called “boxed” solutions involve purchasing a license to use the program, which is installed directly on the personal computers of the car rental company’s employees. Cloud solutions are often more convenient: when using them, the client gains access to an online service from any PC or mobile application. Moreover, cloud solutions are quite flexible, as adding additional features to the software is much easier.

Each type of software has a set of advantages that can be utilized by the owner of a car rental business, regardless of the type, class, and model of the rented cars. Some of these advantages include business process optimization, fleet management, increased profitability of the enterprise, and improved efficiency of each employee, and the company as a whole.

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2. Key features of car rental management software

Often, the set of functions in a specific car rental management software depends on several factors: the developer’s experience and expertise, client requirements, and the company’s pricing policy. However, in most cases, such software possesses similar characteristics that consider the specifics of the car rental business.

Thus, the most commonly used functions of a car rental system are as follows:

With the help of specialized software, you can automate many business processes and routine tasks that used to require a lot of effort and time. Car rental reservations through the company’s website or mobile application, setting up notifications and mailings, and generating invoices – all these operations can be automated, which will significantly increase the efficiency of employees’ work.

Fleet management. One of the main advantages of specialized car rental software over generic software solutions is that it takes into account the specifics of the car rental business. With such a system, you can effectively manage your fleet, store the order history of each vehicle for further optimization, track the location of vehicles, their technical condition, and fuel level, and schedule maintenance work.

Information storage. Cloud solutions are convenient because they give you the opportunity to store important information regarding the company’s activities in one place. You can allocate secure access levels among company employees. This way, you can create and expand a database of clients and contractors, store contracts and financial documentation, and systematize reports based on various parameters.

Payments and other financial operations. The car rental system is designed in such a way as to increase the speed and efficiency of payment processing, which helps improve the quality of customer service. Thus, the software allows for automating invoice generation, contractor payment, refund of insurance deposits to users, and other financial operations, including the use of templates.

Risk management is a particularly important advantage for a car rental business owner. Car rental management software allows for minimizing risks and preventing financial losses through certain features, such as maintaining a database of client drivers, managing fines, tracking instances of dangerous driving, and preventing unauthorized access to the vehicle.

Marketing activities. You also have the opportunity to integrate the enterprise’s marketing strategy into specialized software, plan advertising campaigns, manage rates, launch seasonal promotions, analyze key marketing indicators, and create detailed reports on the effectiveness of promotional methods.

Statistics and reporting. You can analyze not only marketing indicators but also many others. Developers are incorporating more and more parameters into their software solutions, allowing you to keep statistics, create detailed reports, and plan company activities based on market conditions and the specific characteristics of your business.

3. Choosing the right car rental management software

The number of companies offering car rental software development services is growing every year. Therefore, it is crucial to choose a reliable contractor for effective collaboration.

When selecting a partner, attention should be paid to the following factors:

Price policy. Examine the offers of several companies to compare them based on the price-to-quality ratio. If you are limited in budget, pay attention to the cost and functionality of developer package deals. However, if you intend to order the development of a customized system according to your requirements, take into account that such a service will be more expensive.

User-friendliness. It is crucial for the car rental system to have a convenient, intuitive, and multifunctional interface. This will help company employees undergo training more quickly and make the most of the software’s advantages.

Feature set. Pay attention to the functions provided in the standard developer packages. For the owner of a car rental business, it is particularly important that the software allows for automating reservations, processing payments, conducting other financial operations, and tracking the status and location of vehicles. If you have a need for additional specific functions, inquire about the possibility of integrating them into the software.

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Company reputation. It is equally important how many years the company has been operating in the market, as it is a good indicator of the contractor’s experience and expertise in the field of specialized software development. Look for information about the company, customer reviews, and examples of already implemented projects for car rental management software integration.

Scalability. Find out in advance how flexible the terms of cooperation are offered by the development company. It is in your best interest to not only obtain a quality software solution but also have the ability to make changes to it and add new features considering the development and further scaling of your business.

Technical support. Another important factor to consider when choosing a contractor is the quality of technical support. It should be provided not only during the implementation of the software and training of personnel but also include regular software updates, prompt resolution of technical issues, and readiness to answer additional customer questions.

By considering these factors when choosing a contractor, you will be able to find an experienced and reliable partner for productive and long-term cooperation.

4. Benefits and payback of software

Have you already confirmed that specialized software has extensive functionality and can help optimize the operations of the car rental business? Here are the 5 main advantages that a car rental company can gain by implementing such a software solution:

Improved efficiency.

The implementation of a car rental system simplifies many routine tasks through process automation. As a result, employees of the company have more free time to dedicate to more important tasks, the speed of operations increases, the work of all company departments is synchronized, and the efficiency of activities significantly improves.

Cost reduction.

Automating reservations and other operations allows for significant cost reduction and budget optimization for the company. This, in turn, leads to a quick return on investment in the software and enables an increase in net profit from the business activities. Thus, you have more opportunities to invest in the further development of the car rental company.

Service quality improvement.

Increased speed in processing requests, convenient online payment system configuration, database management, integration of marketing activities, and the ability to manage tariffs — all these advantages contribute to improving the quality of customer service. As a result, you increase customer loyalty and attract more new users.

Fleet management.

Car rental management software allows for minimizing risks and unforeseen expenses through fleet control. You can track the location of each vehicle using GPS trackers, manage fines, create a database of drivers, keep records of instances of dangerous driving, add a feature for documenting damages, and adhere to the schedule of vehicle maintenance.

Analysis and planning.

In specialized software, you can view statistics, analyze data, and generate reports on various indicators. This helps forecast market changes, adjust business strategy, and incorporate the acquired data into the company’s marketing plan. As a result, you have more opportunities for dynamic development and scaling of the car rental business.

Conclusion

The implementation of car rental software is becoming increasingly important for companies operating in this industry. Such software allows for the automation and simplification of reservation processes, payment processing, and fleet management, thereby enhancing the efficiency of each employee’s work and the overall enterprise.