APPLICATION OF METHODS OF THE ECONOMIC JUSTIFICATION OF ROAD INVESTMENTS IN DEVELOPING COUNTRIES

APPLICATION DES METHODES DE JUSTIFICATION ECONOMIQUE DES INVESTISSEMENTS ROUTIERS DANS LE CADRE DES ECONOMIES EN DEVELOPPEMENT

OVER THE LAST TWENTY YEARS, METHODS WHICH ARE BASED ON THE ACTUALIZED BALANCE-SHEET AND SURPLUS, HAVE BEEN DEVELOPED PARTICULARLY IN FRANCE FOR THE COST-BENEFIT ANALYSIS OF ROAD INVESTMENTS. THE APPLICATION OF THESE METHODS IN DEVELOPING COUNTRIES WAS OFTEN CONSIDERED UNSATISFACTORY, SPECIALLY WHEN THE MAIN OBJECTIVE OF THE REGIONAL PLANNING SCHEME WAS THE OPENING OF REGIONS TO PRODUCTION AND EXCHANGES. IT WAS THOUGHT THAT THESE METHODS BENEFITED REGIONS WHICH ALREADY HAD A SUBSTANTIAL ECONOMIC ACTIVITY AND THUS STRESSED A DISEQUILIBRIUM, EVEN WHEN CRITERIA MORE COMPLEX THAN THE RATE OF IMMEDIATE ECONOMIC RETURN ALONE WERE INVOLVED. IN FACT, IN SUCH CASES, A DETAILED STUDY SHOWS THAT (1) THE RATE OF INTERNAL ECONOMIC RETURN, WHICH IS ESSENTIALLY A FUNCTION OF GROWTH RATE, IS VERY SENSITIVE TO THE CHOICE OF THE PERIOD OF GROWTH AND ECONOMIC CONDITIONS, (2) THE NOTION OF THE OPTIMUM YEAR OF IMPLEMENTATION MUST BE REVISED, AND (3) THE EVALUATION OF THE SURPLUS, WHICH MUST NOT BE COUNTERBALANCED BY EXISTING TRAFFIC BECOMES VERY UNRELIABLE. THE MACRO-ECONOMIC APPROACH, WHICH UTILIZES THE EFFECTS ON THE LEVEL OF THE ECONOMY OF A NATION, SEEMS TO BE BETTER ADAPTED TO THESE CONDITIONS. IT MAKES IT NECESSARY TO ANALYZE AND UNDERSTAND THE MECHANICS OF DEVELOPMENT AND LEADS TO THE ESTABLISHMENT OF SEVERAL CRITERIA. BECAUSE OF ITS DIFFICULTY OF APPLICATION, IT CAN ONLY BE USED FOR OVERALL OPERATIONS OF REGIONAL PLANNING. THIS ARTICLE IS IN FRENCH.

• Authors:
  • JONEAUX, R
• Publication Date: 1972-9

Language

• French

Media Info

• Pagination: 33-56
• Serial:
  • ANN ITBTP - SERIE QUESTIONS GENERALES 124
  • Issue Number: 297

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Developing countries; Economic efficiency; Economics; Investments; Regional planning; Road construction
• ITRD Terms: 226: Cost benefit analysis; 150: Developing countries; 237: Economic efficiency; 255: Economics; 227: Investment; 359: Regional planning; 3665: Road construction
• Subject Areas: Economics; I10: Economics and Administration;

Filing Info

• Accession Number: 01316797
• Record Type: Publication
• Source Agency: Institut Francais des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux (IFSTTAR)
• Files: ITRD
• Created Date: Nov 21 2010 4:39PM