ASi" kUCTURE FlOR DEVELOPMENT

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Table 6.8 Savings from increased efficiency *bflf-onsar US. doRms) -the - income, and therefore virtually all countries have potential to make significant gains. Sedor SWings Souwreof inefficiency Passing up such gains translates directly into Roads 15 Annual inveshnentrqyirements - human costs because it means limiting progress in created by improper maintenance readcing the 1 billion people who stiIl lack safe Powser 30 Transmission, distnbution, and generation losses drinkdng water and the nearly 2 billion who lack access to electricity and adequate sanitation facilities. Water 4 Leakage At current costs of roughly $150 per person for Railurays 6 Excess fuel use, ovestaffing, and water systems, the redirection over three years of locomotive unavailability just the annual quantifiable technical losses of $55 Tobl 55 - - billion would mean that the 1 billion people without Soon= Ingum and Fav 199. safe drinking water could be served. Thus, although impossible to quantify globally, the most important potential payoffs almost certainly go beyond limiting financial losses and imciency The savings that could be achieved by rais- proving technical efficiency and would result in ing the efficiency of operation from current levels to gains both in economic progress and for the poorattainable best-practice levels are estimated at Better services improve productivity and well-being roughly $55 billion (Table 6.8). These represent pure throughout an economy. Increasing the reliability of resource savings to the economy. Although the esti- power and telecommunications will save businesses mates cover only certain sectors and only some of lost output and redundant investnents. Betterthe technical losses in those sectors, the effiacency maintained roads will lower the costs of vehide opcosts are equivalent to 1 percent of developing eration. Improved rural infrastructure can raise the countries' GDP and are more than twice the annual incomes of the rural poor from farm and nonfarm development assistance flows for astrc activities. Better water and sanitation are critical to One-quarter of the $200 billion annual investment in the poor, who spend time and money cmpesatig infrastructure by developing- countries could be for inadequate infrastructure. All of these improvegenerated just from feasible tedhnical savings. Not ments will contribute to raising living standardsonly low-income countries stand to benefiL Al- by increasngwages m more productive businesses, though access to ifrastructure increases as incomes lowering prices through more efficient transport, rise, infrastructure efficency is not dosely related to and elhancing the quality of life for individuals. 12Z2
V-~~~~~~ : ~~~~ :: . = .-s Bibliographical note This Report has drawn on a wide range of World Mils, Kyu S51k Lee, Andres Liebenthal, Akin Locus- Bank sources-induding country economiic, sector, sol, David Lonmax, Milard Long. Sergio Margulis, and project work and research papers-and. on nux- Costas Mihadopoulos, Pradeep Mfitra, Mohan Mumerous outside sources. TIhe principal sources are nasinghe, Sheoli Pargall, Anthony Pellegrii Sanjay noted below and are also listed by.author or organi- Pradhan, D. C. Rao, Jolhn Redwood Ill Alh Sabeti, zation in two groups: badcground papers commins-, Mary Shirley, Jerry Silverman, Martint Staab, Pedro sioned for this Report and a selected bibliography- Taborga, Mateeni Thobani, Thomas Walton, Peter The background papers are available on -request Watson, Steven Webb, Jmim Wright, and Guilernmo throtugh the World Development Report office. Thie Yepes. views they express |: are not : necessarily | :: z ::~~~~~~~~~~~~~~~~~~~~~~~~2 those of the Many people outside the World Bank contributed World Bank or of this Report advice, comments, and m-ateriaL Contributors and In addition to the sources listed below, many consultation meeting attendees from govemnments people, both inside and outside the World Bank, and biltendl aid agencies indlude Mueern Aza, Pakhelpedl with the Report Int particular, the core team istan Ministry of Fimance; Joy Barrett, U.S. Pe-ace wishes to thanik Sri-Ram Aiyer, Gary Bond, John Corps; Henk Bosch, Netherlands Direcorate Gen- Briscoe, Robert Burns, Laurenc Carter, Michael eral foDr International Cooperation; Emmnanuel de Cohen Jean Dayen, Nissim Ezelael, Ian Heggie, Ar- Calan, Mmne. ChedevifIe-Murray, NI. Gardin, and ML turo Israel, Emmanuel Jinmenz, Shinichiro Kawa- Perelman, Ministry of foreign Affauirs, France; Anne miata., Johannes Linn, Gobind Nankanti, Guy Pfeffer-. Charreyron-Perchet and Claude Mlartinand, Mnmann, Louis Pouliquen, Andres Rigo, Everett istry~ of Public Works, Transport, and Toursm Santos, Zmarak Shalizi, John ShRIling. Warrick France; John Crook, New Zealand Telecom House; Smith, Anidrew Steer, Richard Stern, Inder Sud, Zou Deci, Chinese Academy of UrbanL Planning and Vinod TIhomas, Louis Thompson Michael Walton, Design; Gabor Demszky, Mtayor of Budapest; Miand Hans Wyss. clio Fukal and KCoichiro Fukui, Japan Development Others wlho provided notes or detailed corn- Banlc Yoshitaro Fuwa, Japan Overseas Economic ments mndude Dennis Anderson, Robert Anderson, Cooperation Fund; Tore Gjos, Norwegian Agency Hans Apitz, Ephrem Asebe, Mark Baird, Zelj-ko Ba- foDr Development Cooperation; Eilif Gundersen, getic, Richard Brun, Jos& Carbajo, Krishna Challa, Ministry of Foreign Affairs, Norway, Bnino Gurtner. Anrmeane Chok-si Anthony Churchill, Sergio Con- Swiss Coalition of Development Organizations; treras, Dennis de Tray, Shantayanan Devarajan, Ist- Cielito Habibo, Philippines National Economic and van DoboZI, Gunnar Eskeland, Asif Faiz, John Flora, Development Authority; Ameur Horchani, Mfinistry Louise Fox, Hernan Garca, Armnon Golan, Orville of Agriculture, Tunisia; C K. Hyvder, Metropolitan Gnrimes Luis Guasch, Jeff rey Guitman, Kenneth Chamber of Commerce and lndustry, Bangladesh; Gwilliam, Ricardo Halperin, Roger Heath, Normian Yves Jorlin, Caisse Franqdise Deiveloppemnent; Peter Hicks, Vijay Jagarnathan, F-rida Johan--en, AJl J.K-alas, Swiss Federal Office for Foreign Economic Khadr, Han-d Kharas, Michael Klein, Pierre Landell- Affairs; Patrick Lansmnan and Jean-Michele Sev-
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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
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this chapter shows, where regulator
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transport ministries in Africa is o
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Unlodking local effort through- dec
Page 89 and 90: Box 4.3 Power in Purang and roads i
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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 and 134: = -ableb 6.Te tspbrhivaof jrnte' sc
Page 135 and 136: elements of natural monopoly and mu
Page 137 and 138: solid waste disposal through metrop
Page 139: portant that uinstituitional activi
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
Page 185 and 186: Frnltioirruapm Food pnafaai fndia $
Page 187 and 188: E-wapro&d-rrm &-VWrvaimdVf Penwifr
Page 189 and 190: 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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