Economic Development and Indicators of Infrastructure Provision

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Economic Development and Indicators of
Infrastructure Provision
Regional Workshop on Public-Private Partnership
in Transport
Cesar Queiroz Roads and Infrastructure Consultant
World Bank Transport and Telecommunication
Institute Riga, Latvia, March 6-8, 2007
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Presentation Outline

• Developing and developed countries
• Some measures of infrastructure provision
• Infrastructure indicators and economic
  development
• How private financing can help
• Some policy implications

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Developing and Developed Countries

• Developing countries include low- and
  middle-income economies
• Developed (advanced, industrial, rich) countries
  denote high-income economies

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Classification of Economies
Economies GNI per capita Low-income 875
or less Middle-Income 876 to 10,725 Lower 876
to 3,465 Upper 3,466 to 10,725
High-income 10,726 or more
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Gross National Income (US per Capita)
Source http//devdata.worldbank.org/data-query/
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GNI in the Baltic States
Economies GNI per capita Upper
Middle-Income 3,466 to 10,725 Estonia 9,1
00 Latvia 6,760 Lithuania 7,050
Source http//devdata.worldbank.org/data-query/
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Extent and condition of road infrastructure in
developed and developing countries
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Some Measures of Infrastructure

• Paved road density (PRD), in km per million
  persons
• Electricity-generating capacity (ELE), in
  thousands of kilowatts per million persons
• Number of telephone connections per million
  population (TEL)
• Railroad tracks (RWY), in km per million
  population

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Average Measures of Infrastructure
Economies PRD ELE TEL RWY
(km/mil pop) (1,000s of ( of connec.
(km/mil kw/mil pop) /mil pop)
pop) Low-income 410 70 7,920
70 Lower-middle 610 190 46,760 190
Income Upper-middle 1,950 560 154,100
330 Income High-income 10,150 2,070 673,000
840
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Economic Development and Infrastructure
GNI (/pop)
logGNI 1.39 logPRD R squared 0.76 98 countries
Source Queiroz and Gautam
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Where and How Can PPP help?

• In While PPPs are not a panacea, experience in a
  number of countries, both in the developing and
  developed worlds, have shown that well structured
  PPPs can help a country expand its transport
  infrastructure without overburdening its budget

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Some Policy Implications

• Transport infrastructure is essential for
  economic development,
• then sufficient resources should be made
  available to maintain and expand a countrys
  transport infrastructure.
• Despite relative slowdown, PPPs remain an
  attractive option for many governments

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Thank you!
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Cesar QueirozRoad and Transport Infrastructure
ConsultantTel 1 202-473 8053Cel 1 301-755
7591Email queiroz.cesar_at_gmail.comcqueiroz_at_world
bank.orgwww.worldbank.org/highways