On the other hand, the private sector invests only in countries with well developed infrastructure in all the aforementioned categories. That this is a tautology, no one seems to notice. If the infrastructure is already developed - an investment is not needed. When it is needed, the private sector will not supply it, unless it is already developed. This adversely affects the availability of the domestic product both in the domestic and in the foreign markets.
Agricultural produce is most affected but, to a lesser extent, so are industrial goods.
A second issue is the distortion of the price mechanism. Prices are heightened due to the resources wasted on trying to overcome problems in infrastructure. Prices are supposed to reflect inputs and values and thus to assist the markets to optimally allocate its resources. If the prices reflect other, unrelated, issues - then they are distorted and they distort the economic activity. The third problem is that a disadvantage of a country - is an advantage to its competitors, rivals, neighbours and enemies.