Observations of the growth of passenger and freight service in the Latin American country of Honduras without any significant government regulation show that development has followed a logical pattern, based on the principles of open competition, and has produced a relatively high level of service throughout the country for both passengers and freight. Jeff Gutman (Tippetts-Abbett-McCarthy-Stratton) and Ralph E. Rechel (Rechel and Revis), who served recently as advisers to the Director General of Transport of the government of Honduras, say that in Honduras, a highway oriented economy, transport services are developing through the initiatives of individual owner-operators, some of whom are organized into transport cooperatives. As the highway infrastructure is being completed, transport service is growing and the level of service is improving with minimal government involvement. The improvement and expansion of trucking service, which was until recently completely unregulated, occurred in spite of the government's fears of the results of competition between "unsophisticated" owner-operators. Similarly, the level of bus service is considered very high by world standards. The authors point out, "In its world wide work on transportation policy, investment, and operations, the World Bank has come to the view that the details of transport operations are best left to market forces. The more detailed regulation becomes, the more difficult it is to enforce, and the greater likelihood of either corruption or selective lack of enforcement, introducing additional distortions into the economy." (Author)

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  • Accession Number: 00303277
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 30 1981 12:00AM