ASi" kUCTURE FlOR DEVELOPMENT

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=~~~~~~~~~~pin Z . 'kjt a: - -. - 0~~~~~~eeonudainiicecgr f'.c . ;X- ''.''~i~--~ D -".' -. CoUin0 . -*- - _ . - ' '*~~,. ~~ - Middle-income countre -C l------ 4r..kg)j2~~3~~ inco me.. 2 ' .~ v2 ~ 4oa &neP04~p. 5 .2 ' S _. ''e'c'-timnctios C 1 , *BSC SC *C 2 ? i.. * .wj~~~~~~~~~~~~~~~- - - it"'.'wj'B kAfl i C .:- *1 ' SZC ' The policy options hi telecommurucations are size may be necessary before unbundling becomes simiar for all country types (Table 6.4). In Iow- worthwhile, hDwever, and in the very smallmarkets income coDuntries, exteely liwidted- access to of many low-income countries, vertical separation tetecommunications calls for a h-beral policy on the of generation from trasmisson and distkbution : : ~entry of private suppL;rs These pioviders can re-. may not produce suffident efficiency gains to offset : spond tD users who are willing to- pay fDr regular the additional coordination co.sts involved. hIn virtuservice and can offer alternative communications ally all countries, larg-
elements of natural monopoly and must be -regu- accountable to users and having clear incentives for latedwhen privatized. providing high-qualitr reliable services and effi- Reform of the dominant entities that will remain cient asset management is also desirable. The rein many countries-especially in power ansus- sponsibilityof government in such situations is, at sion-should focus on creating financial and man- minimum, to ensure commercial operation, which agerial autonomy and on promoting commercial can be achieved through delegation to a private behavion Doing so will often quire private partid- company via a rmanagemnent, lease, or concession pation in ownership-through joint ventures or di- contracL Public oversight is necessary to ensure acvestiture-and private management or concession cess for low-income users and to protect public contracts, although private companies involved in health and environmental quality In countries with power transmission are best kept separate fom pni- modest technical capacity, concessions can successvate Companies involved in power generatioiL Insti- fully draw on international experise. Pricng water tutional change is needed to provide incentives for to reflect the full financial, envirornmental, and ecosuppliers to seek economic tariffs, which are neces- nomic costs of supply is essential for generating sary to promote the self-financing of investment, funds to expand service and for promoting efficient conservation of energy, and more efficient use of ex- use. isting capacity. Tariffs must also incorporate any environmental charges paid by power comparies, in SANITAnON. Low-income countries should conline with the principle that the polluter pays for any sider a two-pronged approach to developing sanitaenvironmental costs it imposes on others- tion. Fist contracting schemes, such as concessions, can apply commercial management to sanitation fa- GAs5 Natural gas could potentially be competi- cities in urban areas, Second, m poorer urban and tively supplied in many countries. Often, natural rural communities which are unlikely to be congas production is vertically integrated with petro- nected to the fornMal supply systems in the foreseelean production* that is under public ownership. able fitureintermediate technology can be adapted Ubundlng is required to permit competitive pro- to match users' service requiremns and their willduction under CDncessions, contracts, or private ingness to pay. These lower-cost tertiary systems ownership. The main regulatory issue is to ensure (facilities directly serving end-users, described in competitive access of producers to the transmission Chapter 4) can be chosen, financed, and operated by pipeline.That assurance canbe handled by a regula- the community with technical assistance The trunk tory body or through contract terms in leases or ifrastructure to which the terbary systems connect concessions. Competition from substitute .fuels and the associated treatment facilities remain the di- (when realistically priced) can provide sufficient red responsibflity-in planning, financing, and opmarket discipline to obviate the need to regulate gas eration-of the sector utilities concerneL prices. Private (foreign) investment has oonsiderable potential to meet investment needs for gas pro- RuIcxnoN AND DRANAGE The policy agenda for duction and distbution, provided that noncom- irrigation works also varies accrding to the dharacmercial risks related to the heavy foreign exchange teristics and scale of the systems involved, but it is requirement of projects can be reduced. much the same across country groups. The operation of trunk and feeder facilities can increaswngly be Water and waske handled by financially autonomous entities, while the ownership and operation of tertiar systems Actvities involving water and waste all have strong may be best devolved to user associations or coopenvironmental links that make them less marketable eratives. This solution improves both mnaintenance than telecommunications or energy, and their local and the collection of water charges-two perennial nature makes some activities natural candidates for problems in mnany irrigation systems communitY provision (Table 65). User tees are com- User assocations for operation and maintenance mon in these sectors, although thfey rarely cover the of small-scale irrigation schemes and tertiary canal full costs of service. networks have proved successful in countries as diverse as Argtina, NepaL the Philippines, and Sri WAIER suw ANrD- SWERAw;G Urban piped Lanka. Colombia, indonesia, and Mexico have sucwater and sewerage at the municipal or metropoli- cessfully transferred responsibility for operations tan level should be provided by enterprises run on and maintenance to farmers, even for larger-scale commercial principles. Professional management state-owned schemes. Careful prparation has been 117
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3jQi'[~~~~~~~~~~~~~ ~~~~~~~ I -:A -
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... ..... Oxford University Prss :O
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-: .- : 7 - A- - .~ g ------ Vry. _
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. 6 Setting priorities and implemen
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3.1. Contractual anrangements for p
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Because of changes in GNP per capit
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- - Infrastruckure's roleand record
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L ~ ~ ~ ~ ~ ... ~ ~ ~ ~ ~ C- l' __
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Diagnosing the causes of poor perfo
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private sector have evolved. Port f
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tradability of infrastructure servi
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fits. The way ahead is one of 'cont
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Eior - 1 a iX for. - '1~t'*%~ E 6 -
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;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W.:-
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BoxL12 The importance of infrastruc
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and reliability, as well as on quan
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Expansion of transport infrastructu
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Roads are not private goods, althou
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Table 1.3 Expansion of infrastructu
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: ~ ~ 2 A :0::~~~~~~~~~~~~~~ 9 0 0
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pie of Latin American water utiltie
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straint to their mobility (Figure 1
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Box 1.7 Infastiucture activities ti
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* Option A: Public ownership and op
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Lessons of success and failure mana
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-~~~~o 22, -Svrac pa eae layoffs tt
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vices. These concerns are particula
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Management conitracting wHEN is Ir
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- :. : : . - I- ~~*r~ 4.~ accounts
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The best way of reducing the gap be
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the high rates of return for mainte
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l:: :: . - : 0~ ,aSn- ::~~~i /W-#H
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egional gas distributors, and an en
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5 : zFigre3C4mnbndbgl atvitie ices
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Helped in part by sectoral unbundli
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;t~~1F D ¢- l- e as is demnonstrat
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short-mn gain and skimp on routine
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Table 3.2 Value of infrastructure p
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Box 3.6 Telecom piivatizati6ci the
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Box 3.8 Regulation and privatizatio
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private management can become compl
Page 83 and 84: this chapter shows, where regulator
Page 85 and 86: transport ministries in Africa is o
Page 87 and 88: Unlodking local effort through- dec
Page 89 and 90: Box 4.3 Power in Purang and roads i
Page 91 and 92: ->W>
Page 93 and 94: way of achieving distributional obj
Page 95 and 96: are bundled into low-cost loans to
Page 97 and 98: powerful minorities can capture the
Page 99 and 100: to this purpose without sacrificing
Page 101 and 102: found that although households were
Page 103 and 104: 4 I~~~Z Box46 W canbenefitftbm ibut
Page 105 and 106: I Box. 4.9 Icroaigenviironmental. c
Page 107 and 108: . ............ --S - Financigneeded
Page 109 and 110: Box 5.1 Is there a free lunch?-limi
Page 111 and 112: Box 52 Tapping international capita
Page 113 and 114: 1~~~~D Clt ,-,.Re -b cope an tie 0
Page 115 and 116: V Box 5A A successfl-firtt step in
Page 117 and 118: change risk through the passing on
Page 119 and 120: Box 5.8 Look before you leap: limit
Page 121 and 122: poor financial discipline, and subs
Page 123 and 124: 'sv,t-za6oapioceeds (billions of VS
Page 125 and 126: -~ f4' * ; ylkj XtLSidolkits.(1. -~
Page 127 and 128: .*,mmr ''', '- ' f - .,__ -, 6.. -.
Page 129 and 130: Box 6.1 Ingedientr. of good peromne
Page 131 and 132: government and e strength of the co
Page 133: = -ableb 6.Te tspbrhivaof jrnte' sc
Page 137 and 138: solid waste disposal through metrop
Page 139 and 140: portant that uinstituitional activi
Page 141 and 142: V-~~~~~~ : ~~~~ :: . = .-s Bibliogr
Page 143 and 144: on. grwh once more sophisticated ec
Page 145 and 146: structure and explain the importanc
Page 147 and 148: 1993, Drtze and Stern 1987, Goldste
Page 149 and 150: Ailken, J., G. Cromwell and C. Wish
Page 151 and 152: Easterly, William and Sergio ReWo.
Page 153 and 154: Paul, Samuel. 1991a. -Accomitabilit
Page 155 and 156: Shirley; Mary and John Nellia 1991.
Page 157 and 158: *:: Appendix: Infrastr cture data T
Page 159 and 160: Piual aolai Ekd rkrilytarnyftig' nz
Page 161 and 162: *TLqdqmrc Main (rsRaiilwad tracks I
Page 163 and 164: *Teplephmein lines Railnnd tmcts rs
Page 165 and 166: Acress to safe drIPAIng zmfer Acem
Page 167 and 168: Table AS3 IBRD and IDA commitments
Page 169 and 170: * ;;\ * i Contents Key 154 Introduc
Page 171 and 172: mairking Popzdaliou: hrf htt Total
Page 173 and 174: .~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~I .- In
Page 175 and 176: into the following broad areas: pro
Page 177 and 178: : - .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Page 179 and 180: Pqm&uem Airs GN'perafii -AY an!A Uj
Page 181 and 182: GDP AgmIrflun"y Alatmqjrmd Senrrk.
Page 183 and 184: Disurihhhiuuefgrmd dmndprSarrf 11 G
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Frnltioirruapm Food pnafaai fndia $
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E-wapro&d-rrm &-VWrvaimdVf Penwifr
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Drnbmdnlnfmafaaummtwdwhirdalf%J 197
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73 Ukraine.. ... 74 Algeria ~~~~~-.
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Gewmt~ ~ Awgsaagsns 1 1970-80 *fl3)
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Aimor GOUANWnk Gniadonmk piomm cama
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D!~~me. MasSe limit ~~mar.w-fftw sf
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Perauagrq JwL node riseiiv swim na
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19M410 1.931-9 Sm 193 199 I93-92 PM
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hfar~uNzr,,~r(udWrnSIAwwunqem-fgmi.
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0hsrpflra Maudhmer& Dinf B21) 1992
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P---rAgetrefurerd.ds&rcpans FiEs. n
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73 Ukruin 339 10.3 33.0 3.2 IDA) 43
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MD3 599 197f 19 197) 199 ami 1992 i
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OECD Net bilatral flows to 1ew4ineo
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~~~~~~~Fcquaa MSraefMIm Par iS&f WV
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TowdrreTaRr -- Inc~~t mz2 ]m im mm
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Dbimnsuzm pulEIMS) RqrsYWwsefpdnr4u
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* ~~~~~~~~~~~~~ToAd njinuc Net FDI
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Wpram agwofamdamrsdddirm S of~~~S.f
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Caiwhssu ~~~An iwqr6atwe A-ragromaB
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Tot 1.iS. 1lj9muksud Awiugnwf-guw*
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Cnd&bin CswkdtmuhArifuve rno fjrIUA
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1970 199 1971 POO0 199 1970 1992 1O
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_ _ __ _ _ _ _ _ _ * A~~~~~~~~ifm a
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Luje'ecam=rurabt @vs A&J a(nionrper
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PPPEJrImE4fGNp Tar Is seon N i Fe I
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M%qainl in. Elm arrarein 1992.. 5 %
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ParTr TdecImUmfaIUkdIS Pawr,! at Wa
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Taunt iFemifirnms Fwstr,srsuahmrd.
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E000 *t Technical notes' The main c
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practical and conceptual difficulti
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ties, and any statistical discrepan
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ily workers, they exdude homeworker
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and bxes not allocable to other cat
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derived from shorter-term stays are
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table, goods and services include w
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aise the isk of infant mortaliyand
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Columns 2 thrugh 7 give the shares
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the ICP Phase IV report, World Comp
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mation explicitly excludes decade-l
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t 1 Classfiction orec"onomuies by i
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Part 2 Clssfcation of economies by
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ASi" kUCTURE FlOR DEVELOPMENT

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