ASi" kUCTURE FlOR DEVELOPMENT

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the efforts of donors to focus on common objectives. - For exAmple, tie Sub-Saharan Africa Trasport Pol- FAnnii gai elia icy Program coordinates donor assistance for road -ndmspr a id e ency are,large . maintenance and in several countries lias supported ;rlitive to.m vesbnehL the estabishment of road boards that oversee execution of road maintenance. More generally, external B of U dollars assistance should im to build institutional capacdty = in those countries where it poses a serious constraint _ _ - -; _- cooperation, as well as efforts to collect and dissem- 200 Well-designed programs of training and technical ' lnve. i estm n. iate information on policy options and performance across countries, can supplement donors' siscal advice and financial assistance in creating an appro- b-rde; priate enablng envionment for successful reform J'' 123 and development of infrastructure. A ¢2 < st Potential payoffs from reform . Because of the great variatio n performance, the payoffs from increasing the efficiency of infrastruc- 0_ ture provision wil differ from coun to country - S d - . cos,t A;n:l -i and from sector to sector. But the rewards are poten- -_zr incued'hm - kfastructure-' n_ tialy large across the spectrum, maing the co t- =. technical- t ment to reform imperative and worthwlile. .enc Reform wil produce three types of gains: reduction in subsidies, technical gains to suppliers. and Wevelopmentfinance gains to users. It is possible to make rough estimates of the first two types of gains. The first source of gais is the reducion in the fiscal burden of service 5 j . provision-costs not recovered from users. Although a. conservative estimate can be made for ,- U ix onlv three sectors (power, water, and railways), tie total savings are nearly $123 billion annuallynearly 10 percent of total govenunent revenues in a. iCostsforthewatrsectoraredue to leakages,for railays-fuel iefficiencx. overstaffin&~ andc locomotive developing countries, 60 percent of annual infra- ninfvejstment causedby structure investment, and approximately five times i=mu.oe°rn-s:. annual development finance for infrastructure (Fig- iossesz- 7 ure 5). Eliminatg underpricing would not produce - - W A a net resource savings to the economy (as the costs -- : "''' would be covered by users), but the fiscal relief would be substantial. The payoffs from better infrastructure services go The second source of gains is the annual savings beyond reducing technical inefficency and financial to service providers from improved technical effi- losses. Improvements -in productivity and pricing cdency. The savings possible from raising operating would permit more effective delivery of service in efficiency from today's levels to best-practice levels response to demand. They would also enhance the are estimated at around $55 billion a year-pure growth and competitiveness of the economy. And savings equivalent to 1 percent of all developing they would allow vastly greater mobilization of re- - countries' GDP, a quarter of annual infrastructure sources for needed new investments-by generatinvestment, and twice annual development finance ing higher revenues and by creating a policy envifor infrastructure. Looked at another way, if the an- ronment conducive to the inflow of new investment nual technical losses of $55 billion could be re- resources. directed for three years-at cunrent costs of roughly This Report's agenda for reforming the incen- $150 per person for water systems-the I billion tives and institutional frameworks in infrastructure people without safe water could be served. poses major challenges-but promises major bene- - --.- - .' - '- - '- - - ~~~~~~~~~~~~
fits. The way ahead is one of 'continuing innovation emphasis needs to be on improving environumental and expeimentation, and both industrial and de- conditions. hIcreasingly, infrastructure needs to velopng countries wiI learn from each other. In match new demands as developig countries besome countries, the challenge is to keep pace with come more dosely integrated into the global econrapid economidc growth and urbanization. In others, omny. Infrastructure is no longer the gray backdrop it is to restore growth in ways: that also provide of economic life-underground and out of mind. It greater opportunities to the poor. Everywhere, the is frpont and center in developnnt. 12
Page 1 and 2: 3jQi'[~~~~~~~~~~~~~ ~~~~~~~ I -:A -
Page 3 and 4: ... ..... Oxford University Prss :O
Page 5 and 6: -: .- : 7 - A- - .~ g ------ Vry. _
Page 7 and 8: . 6 Setting priorities and implemen
Page 9 and 10: 3.1. Contractual anrangements for p
Page 11 and 12: Because of changes in GNP per capit
Page 13 and 14: - - Infrastruckure's roleand record
Page 15 and 16: L ~ ~ ~ ~ ~ ... ~ ~ ~ ~ ~ C- l' __
Page 17 and 18: Diagnosing the causes of poor perfo
Page 19 and 20: private sector have evolved. Port f
Page 21: tradability of infrastructure servi
Page 25 and 26: Eior - 1 a iX for. - '1~t'*%~ E 6 -
Page 27 and 28: ;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W.:-
Page 29 and 30: BoxL12 The importance of infrastruc
Page 31 and 32: and reliability, as well as on quan
Page 33 and 34: Expansion of transport infrastructu
Page 35 and 36: Roads are not private goods, althou
Page 37 and 38: Table 1.3 Expansion of infrastructu
Page 39 and 40: : ~ ~ 2 A :0::~~~~~~~~~~~~~~ 9 0 0
Page 41 and 42: pie of Latin American water utiltie
Page 43 and 44: straint to their mobility (Figure 1
Page 45 and 46: Box 1.7 Infastiucture activities ti
Page 47 and 48: * Option A: Public ownership and op
Page 49 and 50: Lessons of success and failure mana
Page 51 and 52: -~~~~o 22, -Svrac pa eae layoffs tt
Page 53 and 54: vices. These concerns are particula
Page 55 and 56: Management conitracting wHEN is Ir
Page 57 and 58: - :. : : . - I- ~~*r~ 4.~ accounts
Page 59 and 60: The best way of reducing the gap be
Page 61 and 62: the high rates of return for mainte
Page 63 and 64: l:: :: . - : 0~ ,aSn- ::~~~i /W-#H
Page 65 and 66: egional gas distributors, and an en
Page 67 and 68: 5 : zFigre3C4mnbndbgl atvitie ices
Page 69 and 70: Helped in part by sectoral unbundli
Page 71 and 72: ;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
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Box 4.3 Power in Purang and roads i
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->W>
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way of achieving distributional obj
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are bundled into low-cost loans to
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powerful minorities can capture the
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to this purpose without sacrificing
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found that although households were
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4 I~~~Z Box46 W canbenefitftbm ibut
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I Box. 4.9 Icroaigenviironmental. c
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. ............ --S - Financigneeded
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Box 5.1 Is there a free lunch?-limi
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Box 52 Tapping international capita
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1~~~~D Clt ,-,.Re -b cope an tie 0
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V Box 5A A successfl-firtt step in
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change risk through the passing on
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Box 5.8 Look before you leap: limit
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poor financial discipline, and subs
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'sv,t-za6oapioceeds (billions of VS
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-~ f4' * ; ylkj XtLSidolkits.(1. -~
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.*,mmr ''', '- ' f - .,__ -, 6.. -.
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Box 6.1 Ingedientr. of good peromne
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government and e strength of the co
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= -ableb 6.Te tspbrhivaof jrnte' sc
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elements of natural monopoly and mu
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solid waste disposal through metrop
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portant that uinstituitional activi
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V-~~~~~~ : ~~~~ :: . = .-s Bibliogr
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on. grwh once more sophisticated ec
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structure and explain the importanc
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1993, Drtze and Stern 1987, Goldste
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Ailken, J., G. Cromwell and C. Wish
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Easterly, William and Sergio ReWo.
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Paul, Samuel. 1991a. -Accomitabilit
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Shirley; Mary and John Nellia 1991.
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*:: Appendix: Infrastr cture data T
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Piual aolai Ekd rkrilytarnyftig' nz
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*TLqdqmrc Main (rsRaiilwad tracks I
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*Teplephmein lines Railnnd tmcts rs
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Acress to safe drIPAIng zmfer Acem
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Table AS3 IBRD and IDA commitments
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* ;;\ * i Contents Key 154 Introduc
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mairking Popzdaliou: hrf htt Total
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.~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~I .- In
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into the following broad areas: pro
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: - .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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Pqm&uem Airs GN'perafii -AY an!A Uj
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GDP AgmIrflun"y Alatmqjrmd Senrrk.
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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
Page 217 and 218:
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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