ASi" kUCTURE FlOR DEVELOPMENT

in particular, by naking the unbundling of diverse same time, increased efforts are being made to deactivities
more feasible. Microelectronic monitoring volve responsibility for infrastructure provision to
devices and nondestructive testing techniques can local governments, to increase participation, and to
facilitate the assessment of infrastructure facilities foster self-help.
(at reduced cost), often permitting testing by an Awareness that the poor (and future generations)
agent other than the operator-such as the owner are constituencies that must be answered to has
or regulator. Remotely controlled devices for in- stimulated a search for alternatire ways of providspecting
pipe networks and the shift from analog to ing services or managing demands so as to broaden
digital telephone switching have greatly simplified access while avoiding environmental problems. Reland
reduced maintenance costs. Electronic informa- atively simple changes in design parameters for
tion systems, including geographic mapping, im- sewerage and improved design of latrines have
prove the planning and design of investments and made sanitation affordable to low-income commuthe
coordination of network operations. Technolo- nities while permitting private initiatives in financgies
tHat are dearly more efficient robust, and flexi- ing, maintenance, and manufacture of parts. An
ble than earlier methods enable developing coun- increasing range of technical, economic, and institutries
to "leapfrog" sectoral transitions experienced tional alternatives to conventional wastewater treatearlier
by high-income countries. Fcr example, ment can reduce the need for costly filtratior. plants.
Brazil based its telecommunications expansion in Countries are adopting alternatives to large-surface
the 1970s on emerging digital equipment and schemes in irrigatiorn-such as drip, bubble, and
thereby facilitated the development of information- sprinlder systems and low-level canals with low-lift
based industries. Policy-induced inefficiencies pumps-that are highly responsive to farmers'
slowed the modernization of the sector in the 1980s, needs for water and are also environmentally sushowever.
taiable. There is renewed interest in nonmotorized
means of transport, including bicycles and hand
NEw PRAGMAISM. A new attitude, stemming carts, and simple road improvements that enhance
from an enhanced understanding of the relative mobility in both rural and urban areas; Recognition
strengths and weaknesses of governments and mar- of the need to conserve scarce resources has led to
kets, is also creating opportunities for reform of in- efforts to avoid unnecessary infrastructure investfrastructure
provision. In the 1980s, the efforts of ments-for example, by promoting recycling and
many countries to reduce the size of their over- recovery of solid waste materials; reducing waste
extended public sectors led to a better realization of and effluents at the source; and managing demand
what govemments and markets can and cannot do. for water, power, and transport (Chapter 4). Indus-
Worldwide liberalization of markets and experi- trial and developing countries are leaning from
ments with different forms of private sector partici- each other in these areas.
pation in many sectors have provided a new. body of
experience to reinforce this pragmatic attitude. Theo- The -ay ahead: a road map of reformn
retical and institutional advances have also revealed
when regulation is necessary and how to refine its Awareness of past mistakes, together with new opapplication.
All this leads to two main conclusions. portunities, demands that a fresh look be taken at
First, there are fewer infrastructure activities requir- the roles that governments or other public agencies
ing government intervention than once believed, and the private sector should play in providing a
Second, when required, goverment intervention mor efficient and more responsive infrastructure.
can be exerted through less distorting instruments of The challenge is to determine those areas in which
public policy than those traditionally used.
competitive market conditions can work and those
that require public action. Within these broad pa-
RENEWED COMMrTMENT TO SOCIAL AND ENVIRON- rameters, there is a menu of institutional options
MENTAL CONCERNs. Political developments-includ- that allow governments, public sector agencies, and
ing the trend in many countries toward democra- private groups (both for-profit and nonprofit) to astization,
pluralism, and decentralization-have sume responsibility for different aspects of service
fueled a concern with finding more affordable and provision. The choices among the options will vary
environmentally friendly solutions in infrastruchtre. among countries, on the basis of thleir economic, in-
This conmmitment has led to greater- appreciation of stitutional, and social characteristics. The spectrum
the need to consult local communities, the poor, and of options is broad, but four main approaches can be
groups affected by environmental factors. At the identified:
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