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Transport

Beyond Infrastructure: Trade Facilitation Priorities for the Belt and Road Initiative

Marcus Bartley Johns's picture
Countries participating in the Belt and Road Initiative face a major challenge in facilitating trade. While large investments in trade-related infrastructure capture global headlines, transaction costs generated by inefficient border clearance and trade-related regulatory requirements are one of the major policy risks facing the BRI.
 

Improving urban transportation for upward social mobility in Malaysia

Wei San Loh's picture
Access to transportation is essential for improving the upward social mobility of low-income communities in Kuala Lumpur, especially residents of low-cost public housing units. (Photo: Samuel Goh/World Bank)

Over the years, Malaysia has demonstrated great improvements in enhancing upward social mobility as the country continues to advance toward becoming a developed nation. However, this success has not been evenly distributed among the population. A 2016 Khazanah Research Institute study found that 24% of children born to low-skilled parents in Malaysia remained low-skilled as adults. Likewise, 46% of children born to parents in the bottom 40% of the national income distribution remained in the bottom 40%.

India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

Beating the odds? How PPPs fare in fragile countries.

Fernanda Ruiz Nunez's picture



While discussion about Maximizing Finance for Development (MFD) is ramping up with governments and the international development community to seek innovative approaches to mobilize more private sector investment in developing countries, there is a group of countries with an additional layer of complex challenges.

It brings me no pleasure to say this, but a fair number of countries have economic and financial conditions, business environments, and rule of law that are almost always weak. Clearly, these conditions significantly increase the risks of investing in infrastructure for the private sector; consequently, the markets for public-private partnerships (PPPs) tend to be less developed.

Some solutions for improving pedestrian safety

Irene Portabales González's picture
Also available in: Spanish
Road with independent space for pedestrians, cyclists and cars in San Isidro. Photo: World Bank
We all have an intuitive sense that pedestrians are particularly vulnerable to road traffic crashes. After all, there is only so much the human body can take. At 30 km per hour, a pedestrian has a 90% chance to survive an impact. But if a vehicle hits you at 50 km/h while you’re walking down the street, that collision will have the same impact a falling from the fourth floor of a building.

Data from the World Health Organization (WHO) confirms that road crashes do indeed take a serious toll on pedestrians. In 2013, more than 270,000 pedestrians lost their lives globally, representing almost 1/5 of the total number of deaths.

In the United States, numbers from Insurance Institute for Highway Safety reveal a 46% increase in the number of pedestrians dying on the road, largely due to the expansion of rapid arterial roads in urban and suburban areas.

In Peru, where we’re based traffic crashes data pertaining to pedestrians are just as startling. According to the Ministry of Health, almost half of pedestrians involved in a collision sustain multiple injuries, and 22% of them suffer from trauma to the head. The chances of a fatal outcome or other serious consequences are very high.

Daily commute in Haiti: How do people get to work?

Nancy Lozano Gracia's picture



At 5am, when the sun has still not gone up, the streets of Port-au-Prince are already busy. But they are not busy with cars, since income levels in Haiti are still too low – Haiti ranks 200 among 216 countries on 2015 Gross National Income rankings published by the World Bank – and the colorful tap-taps remain unaffordable to most of the population. At this time of the day, streets are filled with people walking to work or school, starting their long journeys early so they can arrive on time. In fact, only 26% of Haitians use any motorized vehicle on a regular basis. The remaining 74% either walk everywhere or do not travel at all. 

Announcing the winners of the 2018 #OneSouthAsia Photo Contest

World Bank South Asia's picture


Home to Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, South Asia is one of the world’s most dynamic regions.

It's also one of the least integrated.

A few numbers say it all: Intra-regional trade accounts for only 5 percent of South Asia’s total trade; Intra-regional investment is smaller than 1 percent of overall investment.

New report on private capital for infrastructure in the poorest countries: 2017 a stellar year

Deblina Saha's picture



What do Bangladesh, Honduras, and Senegal have in common?

They all have per capita Gross Net Income below $1,165, allowing them to borrow from the World Bank’s International Development Association (IDA) that provides concessional financing to the world’s poorest countries. There are 72 other such IDA-eligible countries.

IDA countries face many complex challenges in the new global economy, including underdeveloped infrastructure, inadequate access to basic services, and a lack of affordable financing.  IDA support simply is not enough to resolve the myriad of complexities in these countries, and governments need to seek alliances with the private sector—especially when it comes to building infrastructure sustainably.

One Bus Away: How unbundling bus provision from operation can support bus modernization programs

Leonardo Canon Rubiano's picture
Photo credit: Leonardo Canon Rubiano/World Bank
The World Bank is supporting the Government of Sri Lanka’s efforts to create a roadmap for the modernization of urban bus services in the capital, Colombo. We have discussed ways in how cities with high-quality public bus networks have approached the issue: the public sector is responsible for infrastructure development, network and service planning, and regulating and monitoring of operations, while efficiency-oriented bus companies operate the services according to well-defined contracts.

South Asia’s transport corridors can lead to prosperity

Martin Melecky's picture
 World Bank
Transport corridors offer enormous potential to boost South Asia’s economies, reduce poverty, and spur more and better jobs for local people, provided the new trade routes generate growth for all and limit their environmental impact. Credit: World Bank

This blog is based on the report The Web of Transport Corridors in South Asia -- jointly produced with the Asian Development Bank, the United Kingdom’s Department for International Development, and the Japan International Cooperation Agency

No doubt, South Asia’s prosperity was built along its trade routes.

One of the oldest, the Grand Trunk Road from the Mughal era still connects East and West and in the 17th century made Delhi, Kabul and Lahore wealthy cities with impressive civic buildings, monuments, and gardens.

Fast forward a few centuries and today, South Asia abounds with new proposals to build a vast network of transport corridors.
 
In India alone—and likely bolstered by the successful completion of the Golden Quadrilateral (GQ) highway system—several transport proposals extending beyond India’s borders are now under consideration. 
 
They include the International North-South Transport Corridor (INSTC), linking India, Iran and Russia, the Asia-Africa Growth Corridor, and the Bangladesh, China, India, and Myanmar (BCIM) economic corridor.
 
The hope is that these transport corridors will turn into growth engines and create large economic surpluses that can spread throughout the economy and society.

Arguably, the transport corridor with the greatest economic potential is the surface link between Shanghai and Mumbai.
 
These two cities are the economic hubs of China and India respectively, two emerging global powers.
 
The distance between them, about 5,000 kilometers, is not much greater than the distance between New York and Los Angeles.
 
But instead of crossing a relatively empty continent, a corridor from Shanghai to Mumbai—via Kunming, Mandalay, Dhaka, and Kolkata—would go through some of the most densely populated and most dynamic areas in the world, stoking hopes of large economic spillovers along its alignment.
 
“Build and they will come” seems to be the logic underlying many massive transport investments around the world.
 
However, the reality is that not all these investments will generate the expected returns.
 
Worse, they can become wasteful white elephants—that is, transport infrastructure without much traffic—that would cost trillions of dollars at taxpayers’ expense.
 
So, how can South Asia develop transport corridors that have a positive impact on their economies and benefit all people along the corridor alignments and beyond?  
 
First, countries need to change the mindset that transport corridors are mere engineering feats designed to move along vehicles and commodities.
 
Second, sound economic analysis of how corridors can help spur urbanization and create local jobs while minimizing the disruptions to the natural environment, is key to developing successful investment programs.
 
Specifically, it is vital to ensure that local populations whose lives are disrupted by new infrastructure can reap equally the benefits from better transport connectivity.
 
The hard truth is that the development of corridor initiatives may involve difficult tradeoffs.
 
For instance, more educated and skilled people can migrate to obtain better jobs in growing urban areas that are benefiting from corridor connectivity, while unskilled workers may be left behind in depopulated rural areas with few economic prospects.
 
But while corridors can create both winners and losers, well-designed investment programs can alleviate potential adverse impacts and help local people share the benefits more widely.
 
In that vein, India’s Golden Quadrilateral, or GQ highway system, is a cautionary tale. 
 
No doubt, this corridor had a positive impact. 
 
Economic activity along the corridor increased and people, especially women, found better job opportunities beyond traditional farming.
 
But this success came at a cost as air pollution increased in the districts near the highway.
 
This is a major tradeoff and one that was documented before in Japan when levels of air pollution spiked during the development of its Pacific Ocean Belt several decades ago.
 
Another downside is that the economic benefits generated by the GQ highway were distributed unequally in neighboring communities.  


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