Financing of transport infrastructure and services: issues in the context of realignment of state and market

Abstract

The critical role of infrastructure in sustaining high rates of economic growth and overall development has been receiving renewed attention in recent years. The World Bank's major annual publication on development imperatives, the World Development Report 1994, is addressed to infrastructure for development. The rapid pace of globalization in many parts of the developing world has brought with it both a demand for more and better quality infrastructure and services, as well as new opportunities in the new climate for private foreign investment. The transportation sector is a key component of the infrastructure sector, and shares many features common to infrastructure generally. At the same time, transportation has distinctive characteristics which distinguish the sector from other infrastructure, and even within transportation, there are major differences between alternative modes. These differences have a close bearing on the manner in which transportation infrastructure and services can be financed.