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Recent World Bank Data Reveal Worrying Trends in Transport

David Lawrence's picture



The World Bank’s Public-Private Partnership Group and Public-Private Infrastructure Advisory Facility report that total private participation in infrastructure (PPI) fell in the transportation sector in emerging markets by 39 percent to $33.2 billion in 2013, compared with 2012 levels.

In part, this reflects a broader trend – overall, PPI in all infrastructure sectors fell by 24 percent. The biggest drop was in South Asia, which saw PPI in transport fall from just over $20 billion in 2012 to approximately $3 billion in 2013, mostly because of significant decreases in India. Two other regions – Latin America & the Caribbean (LAC) and Eastern Europe and Central Asia (ECA) – also saw decreases. PPI in transport increased in East Asia and the Pacific (EAP) and Africa, but not by enough to offset decreases elsewhere.



2013 Transport PPIs by region
 
This is not good news for the world’s poor. Transportation is a critical component of development and growth, enabling people to access schools, hospitals and markets. It facilitates labor mobility and ensures that raw materials and finished goods get to customers. In rural areas, transportation systems provide an economic and social connection with the rest of the country. Within cities, good urban transportation is often the only form of transportation available to the poor. It also improves the flow of goods and services, reduces greenhouse gas emissions, and improves the overall quality of life.

Financing Needs Cannot Be Met Without Private Sector's Help

Nazaneen Ismail Ali's picture
 
Photo: Dana Smillie / World Bank


To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.
 
These gigantic financing needs will continue to place a huge burden on government budgets. Simply put, they cannot be addressed without private sector participation. Public-private partnerships (PPPs) can help to close this growing funding deficit and to meet the immense demands for new or improved infrastructure and service delivery in sectors like water, transport, and energy (among others). In countries with diverse and numerous needs,PPPs can fill gaps in implementation capacity as well as the scarcity of public funds.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Is the Internet broken, and can it even be fixed?
CNN
Our modern global communications infrastructure still relies on core principles that were defined when the Internet had only a few thousand users. We have faster computers, more storage space, and more people using the network, but worryingly, some of the key assumptions haven't changed. As an example, take the protocol that helps determine how data gets to its destination. Different networks in the Internet "advertise" routes to deliver data to other networks, with the most efficient candidate being chosen.

The Future of Cities
Foreign Affairs
As much as the Internet has already changed the world, it is the Web’s next phase that will bring the biggest opportunities, revolutionizing the way we live, work, play, and learn. That next phase, which some call the Internet of Things and which we call the Internet of Everything, is the intelligent connection of people, processes, data, and things. Although it once seemed like a far-off idea, it is becoming a reality for businesses, governments, and academic institutions worldwide. Today, half the world’s population has access to the Internet; by 2020, two-thirds will be connected. Likewise, some 13.5 billion devices are connected to the Internet today; by 2020, we expect that number to climb to 50 billion.
 

A Public-Private Push for Infrastructure and ‘Inclusive Growth’

Donna Barne's picture

Swiss Re Group Chief Investment Officer Guido Fürer, European Investment Bank President Werner Hoyer, World Bank Group President Jim Yong Kim, and Australian Treasurer and Chair of the G20 Finance Track Joe Hockey at the signing ceremony for the Global Infrastructure Facility. © Simone D. McCourtie/World Bank

The idea of “Inclusive growth” and how to achieve it was talked about a lot in the days ahead of the 2014 World Bank-IMF Annual Meetings. Among the solutions on the table was a new initiative that could help unlock billions of dollars for infrastructure and improve the lives of many.

About 1.2 billion people live without electricity and 2.5 billion people don’t have toilets. Some 748 million people lack access to safe drinking water. The Global Infrastructure Facility (GIF) announced by World Bank Group President Jim Yong Kim this week hopes to lower these numbers by developing a pipeline of economically viable and sustainable infrastructure projects that can attract financing.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Focus on Migration: Rising migration is a myth
SciDevNet
Hardly a week goes by without media coverage of the fears, in developed nations, that immigrants from poorer countries are overwhelming them. A recent story in the British newspaper The Telegraph — describing how open borders, the “ravages of globalisation”, and a welfare economy have given rise to social resentment — is just one example. [1] Such narratives tap into the popular myth that globalisation has led to a one-way, free flow of migrants from poorer countries — making migration a political issue almost everywhere in the industrialised world.

Facebook is more important to news distribution than you think, and journalists are freaked out
Poynter
Facebook’s Liz Heron answered for a litany of perceived sins and slights last week during a conversation with The Atlantic’s Alexis Madrigal and attendees at the Online News Association conference in Chicago. Journalists are anxious about being left out of the loop about how Facebook works, and they want answers. Does Facebook play favorites in the News Feed Algorithm? Nope, according to Heron, the company’s head of news partnerships. In other words: If you want to be successful on Facebook, don’t get caught up in the nuts and bolts of what it favors or disfavors about posts (and it won’t tell you much about those nuts and bolts anyway, so that works out).

China’s Yang Lan Asks How to Help the Have-Nots

Donna Barne's picture
Poverty may be falling, but 1 billion people still live in extreme poverty. Inequality is growing everywhere. What is the World Bank Group doing about this?

The World Bank Group President Jim Yong Kim and World Bank Chief Economist Kaushik Basu had some answers in a live-streamed conversation, Building Shared Prosperity in an Unequal World, with Chinese media entrepreneur Yang Lan in the lead-up to the institution’s Annual Meetings on Wednesday morning.

Voting with their feet? Access to infrastructure and migration in Nepal

Forhad Shilpi's picture

Do migrants respond to differences in access to public goods and services in addition to income prospects of potential destinations?  This issue is important in developing countries where provision of basic public goods affects not only income prospects but also quality of life. And in these countries, provision of public goods tends to vary widely across areas.  In a Tiebout (1956) sorting model, such disparity in the provision of public goods such as roads, electricity, schools, hospitals, etc. should induce people to "vote with their feet" and to migrate to areas with better access to these infrastructures and services.

Liquidity Glut, Infrastructure Finance Drought and Development Banks

Otaviano Canuto's picture

The world economy faces huge infrastructure financing needs that are not being matched on the supply side. Emerging market economies, in particular, have had to deal with international long-term private debt financing options that are less supportive of infrastructure finance.

The Things We Do: Design with the User in Mind

Roxanne Bauer's picture

City planners and design professionals have long known that the way in which physical space is constructed affects human behavior. Walkways, doorways, and lighting direct people for strategic reasons, colors and textures impact our sensory experiences, and the size and flow of space affects our social interaction.

Physical space is also important in designing transportation infrastructure where entry and exit points direct the flow of traffic, ticketing affects efficiency, and roadways shape the speed and orientation of traffic.

As one architect puts it, “Designers often aspire to do more than simply create buildings that are new, functional and attractive—they promise that a new environment will change behaviours and attitudes.”

Consumers consider these aspects when they decide how to travel in a process known as translation in which they consider personal benefits and costs of a product. In this case, people make ask themselves, ‘I know a new bus line is available, but will it save me money or time?’ or 'I can ride my bike, but will it be safe?'  The process is complex, and occurs over time and through repeated interactions.

In order to put design to good use in changing attitudes and behaviors, the city of Bogotá immersed itself in the lives of its residents and created solutions to tackle the heavy congestion and lack of safety that were common on the city’s streets. They used the economics of nudge, paired with design principles, to increase public use of bicycles and buses.

Philippines: Why We Need to Invest in the Poor

Karl Kendrick Chua's picture
A fish vendor waits for customers in his stall in Cebu City. According to the latest Philippine Economic Update, pushing key reforms to secure access to land, promote competition and simplify business regulations will also help create more and better jobs and lift people out of poverty. ​(Photo by World Bank)



In my 10 years of working in the World Bank, I have seen remarkable changes around me. In 2004, Emerald Avenue in Ortigas Center, where the old World Bank office was located, started to wind down after 9 PM.  Finding a place to buy a midnight snack whenever I did overtime was hard. It was also hard to find a taxi after work.

Today, even at 3 AM, the street is bustling with 24-hour restaurants, coffee shops, and convenience stores, hundreds of BPO (Business Process Outsourcing) employees taking their break, and a line of taxis waiting to bring these new middle class earners home. Living in Ortigas Center today means that I also benefit from these changes.


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