Module topical coverage
- Direct, indirect and induced economic benefits of construction
- Commercial operations and the informal economy
- Enhancing benefits via safeguards (Environmental, Social, Health & Safety)
- Digital innovations and new technologies
Introduction
The construction sector is a significant part of any economy, particularly in many of the rapidly urbanising LMICs. In order to effectively promote economic development, it is important that practitioners working in the infrastructure sector have an understanding of the relationship between construction and the way the industry works – engaging with the commercial reality of construction, the integrated dynamics of informality, the importance of health and safety on construction sites, risks in supply chains and delivery, as well as environmental and social safeguarding.
A responsible and inclusive construction sector delivers wide-ranging benefits, including safeguarding workers’ health and safety by preventing accidents, thereby fostering more productive and resilient communities. Prioritising inclusivity, such as creating safe, accessible workplaces, is central to enabling participation and advancement for women, people with disabilities and other marginalised groups, that can over time expand access to stable and meaningful employment opportunities linked to infrastructure assets.
Digital innovation and new technologies also present opportunities to improve the economic development and poverty reduction potential of construction. The World Bank and other multilateral development banks (MDBs) will typically review the capability, capacity, regulation and supply chains of construction sectors. Boom/bust cycles are common. Economic development and opportunities in different sectors vary. For example, the returns to investing in road maintenance are high yet political economy factors often lead to it being neglected as priorities are given to new construction (ribbon-cutting).
Maintenance roles offer longer-term, stable jobs suited to a broad range of skillsets and experience levels. Such positions often provide entry points for underrepresented groups, increasing workforce diversity and bringing socioeconomic benefits to the wider community. By focusing on maintenance, programmes can support inclusion, equity and sustainable employment growth.
Examples from the UK’s development support have included construction sector activity – the Rural Access Program in Nepal and the Labour-Intensive Rural Road Maintenance Programme in South Africa. Additionally, adopting inclusive procurement strategies – including proactive engagement with MSMEs and local entrepreneurs – widens supply chain diversity and embeds social value in project delivery. Encouraging responsible procurement practices can help unlock new market opportunities, enhance local capacity, and reinforce the resilience of the construction sector.
Key introductory reading
Case studies
Further reading
Climate, Environment and Nature Helpdesk
The UK government funded Climate, Environment and Nature (CLEAN) Helpdesk, provides free, on-demand technical assistance to UK government officials working to improve climate, environment and nature mainstreaming across ODA eligible initiatives. Gender equity, disability and social inclusion (GEDSI) is mainstreamed across all our work. All resources are available in CLEAN resource library. UK Government staff should register for full access to sensitive documents.
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