ASi" kUCTURE FlOR DEVELOPMENT

;~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W.:- _.; M-r
; -' " . u f . - . - - ' ' '-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 '
|~ ~~~~~~~~~~~~~~~~~~~~~~~iell
- Peru. a
'. Sene l 'ta C:
- RLE '. .'a
Ionian c 0 0 - . , e .
OC-P~~~~~~-
4.
- -: -.
Z=*1a .9- -- - "-f 0 .m 4 A X l
f ' t -'~~~~~~~~~~a'
' ''.',' 6w0 ggf'.','
differences in the efficency of ivestment across
countries and over time. For example, a study of the
economirc returns; to individual World Bank projects
shows that, when overall economic policy condi-
lions are poor, the returnis to infrastructure invest-
meat decine. Retn's are lower by 50 percent or.
more in countries with restrictive trade policies thian
ng appropriate levels, or sectoral allocations, for -
fr-astructure investment Other evidence 'confirms
that inveStment in infrastructure alonte does not
guarantee growth. Many studies reveal much
smaller retumts for. infirastructure than those SUgg'ested
in Box 11-doser, in fact, to the return ow
private investmnents. These disparities may be due to
16