ASi" kUCTURE FlOR DEVELOPMENT

solid waste disposal through metropolitan or re- RAILwAYS. The essential. elemnent of reform for a
gional entities operated under contracts with the railway is to give it autonomy to operate as a cornpnvate
sector, as int Caracas, Sio Paulo,. and other mercial activity-a commditment that can be
cities in Latin America. Concessions are a useful strengthened through an infusion of private equity
means of obtainiing technical expertise in waste dis- capital and4 private management Railways in devel-
*posal technology-
oping countries. have typicaily been heavily regu-
-lated, structured as monolithic organizationis, and
Transport
saddled with uneconomic lines and overemploymenL
The resulting fiscal subsidies and unreliable.
The transport s'ector allows for a rich midx of options service make the railways less able to modernize
for service provision. Roads offer the least scope for and to compete with other modes of transport. The
private sector involvement (because of pricing prob- presence of interrnodal competition for freight and
lenms), and sectors such as railways need some regu- passenger services calls for a n!form strategy that
lafion because of large sunk costs or to ensure net- wouldt largely remove price regulation from rail serwork
access (Table 6.6).
vices and grant the railways structural flexibility to
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