ASi" kUCTURE FlOR DEVELOPMENT

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nancing to ensure that communities are willing to pay for the quality of road service provided-if all Igare 4. oitries wvith decetaid costs were borne by higher government levels, local wad mdaitenance -nave btter ro 6ads, reidents would prefer paved roads. A review of forty-two developing countries found that, where . -road maintenance was decentralized, bacldogs were P--,eicentage_oF rodslower and the condition of roads was better (al- - - thiough thie e-ffect of financing dcleontraliztion was L- ~ 5 012 533 not included) (Figure 4.1). The decentralied cases , also had higher proportions of paved roadway. But decentralization was also associated with high-er unit Tnpvdros costs of maintenance (partially reflecting the higher share of paved woads) and with wider differences in quality across regions (reflecting interregional differences in institutional or human capacity). DEca,rrRAuzxnoN IN wATER AND SANITAloN. An analysis of World Bank-funded projects demonstrates thiat a division of responsibfiiies, provided that there~ is suitable coordination, leads to better performance and miaintenance in the water~ and sanitation sectors than would be the case in more Paived road Cntaize eU flenraid centralized frameworks. Data for a group of devel- -- oping countries reveal that per capita water produc- 5rWdd Idaa£42eelpgom2s tion costs are four times higher in centralzed 'than - in fully decentralized systems and are lowest when decentraliztion is combined with centralied coordinationt Mast water sector studies recommend a gional public utilities often take over local functions three-tiered organ'ization, with a national agency re- on contract from those municipalities that lack the sponsible for finance, long-term planning, standard -necessary scale of operation to be economic.. setting, and technical assistance. Under the national Decentralization is. not inherently good or badagency, regional utilities function as operators, mon- As with all arrangemnents, its success depends on itoring compliance with national standards and reg- the incenitives it creates, the capabilities it can draw ulatiorns, supervising local systems, and training on, and the costs it imposes.-To improve incentives, local managers and technical staff. The third tier public accountability is essential and can be enconsists of local agencies that manage the local sy- hanced by local choice of leaders, local control of fi-. tern, collect fees, monitor use and maintenance, and nances, and other forms of local responsibility. Elecplan local budgets. An alternative decentralized tions are one mechanism for involving citizens in arrang ement found* in France and Germany (and choices-electoral reformn in Colombia and Veneemerging in Brazil and Poland) moves mnanagement zuela has produced a resurgence in 1hcal leadership. of each activity to the lowest appropriate level. For Newly elected mayors have been able to mobilize example, water resource mnanagement-including private sector financing for investment prograrns_ In regulation, emission standard setting, and invest-. order to be held accountable, local leaders must merit decisi'ons-is at the water basin (rather than have controL This includes control over revenues, the national) level, while the provision of services is which in turn requires ade quate local finance laws left to municipalities. (covering budgeting financial reporting, taxation, Of course, technical considerations may dictate contracting, and dispute settlement). In many countcollaboration and planning across government 1ev- tries, key responsibilities of local governmentsels. For example, water and santitation investment including the ability to tax or to charge user feesdecisions made by regional utilities have to be coor- can be suspended by the central bureaucracy withdinated with local land-use planning.. And linilta- out consultation. T-his lack of autonomy discourages. tions are often imnposed by local capacity. In Brazil, local administrators and contributes to a popular although municipalities are constitutionally as- image of local government inefficiency or even corsigned respons-ibility for delivery of urban water, re- muption. Accounts and audits are important sources 75
Unlodking local effort through- decentralization guze 4. Prpaomeeaerequires creating new technical and institutional calpmject effecniveness byimprovmgsy~wt pacity. Many poor communities lack requisite skills y -. ~ .. and cannot take up the opportunities offered by detS4V& -~ 4 C >,-'- 2 1t t = m < -. centralization. This lack of capacity renains an im- >cet;i.t. portant constraint. Adequate technical support is Vt, ~ Projectneeded, including access to engneerng, project dest%,,
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3jQi'[~~~~~~~~~~~~~ ~~~~~~~ I -:A -
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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
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
Page 73 and 74: short-mn gain and skimp on routine
Page 75 and 76: Table 3.2 Value of infrastructure p
Page 77 and 78: Box 3.6 Telecom piivatizati6ci the
Page 79 and 80: Box 3.8 Regulation and privatizatio
Page 81 and 82: private management can become compl
Page 83 and 84: this chapter shows, where regulator
Page 85: transport ministries in Africa is o
Page 89 and 90: Box 4.3 Power in Purang and roads i
Page 91 and 92: ->W>
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
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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
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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
Page 225 and 226:
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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