Economic Development and Indicators of Infrastructure Provision

Economic Development and Indicators of Infrastructure

Provision

Regional Workshop on Public-PrivateRegional Workshop on Public-PrivatePartnership in TransportPartnership in Transport

Cesar QueirozCesar QueirozRoads and Infrastructure Consultant Roads and Infrastructure Consultant

World BankWorld BankTransport and Telecommunication InstituteTransport and Telecommunication Institute

Riga, Latvia, March 6-8, 2007Riga, Latvia, March 6-8, 2007

Presentation Outline• Developing and developed countries• Some measures of infrastructure

provision• Infrastructure indicators and economic

development• How private financing can help• Some policy implications

Developing and Developed Countries

• Developing countries include low- and middle-income economies

• Developed (advanced, industrial, rich) countries denote high-income economies

Classification of EconomiesEconomies GNI per capita

Low-income $825 or less

Middle-Income $826 to $10,065Lower $826 to $3,255Upper $3,256 to $10,065

High-income $10,066 or more

Source: www.worldbank.org/data

51810

41400

3288030370

147709130708068205580340026802040 720 280 110

0

10000

20000

30000

40000

50000

60000

Gross National Income (US$ per Capita)

Source: http://devdata.worldbank.org/data-query/

GNI in the Baltic StatesEconomies GNI per capita

Upper Middle-Income $3,256 to $10,065

Estonia $7,080Latvia $6,760Lithuania $7,050

Source: http://devdata.worldbank.org/data-query/

Extent and condition of road infrastructure in developed and developing countries

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

Average Measures of Infrastructure

Economies PRD ELE TEL RWY (km/mil pop) (1,000’s 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

Economic Development and Infrastructure

100

1000

10000

100000

100 1,000 10,000 100,000

Paved Road Density (km/mil pop)

GNI ($/pop)

Source: Queiroz and Gautam

logGNI = 1.39 logPRDR squared: 0.7698 countries

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

Some Policy Implications• Transport infrastructure is essential for

economic development,

• …then sufficient resources should be made available to maintain and expand a country’s transport infrastructure.

• Despite relative slowdown, PPPs remain an attractive option for many governments

Thank you!

Cesar QueirozRoad and Transport

Infrastructure Consultant

Tel +1 202-473 8053Cel +1 301-755 7591

Email: [email protected]@worldbank.org

www.worldbank.org/highways