Mobilising Revenues Key Issue

The author claims that road reform in developing countries are being hampered by vested interests. Governments are turning to new-style road funds to generate additional revenues. These involve road-related taxes, usually in the form of license fees and fuel surcharge. While evidence suggests that these arrangements are sound and do generate more funds for roads, they face resistance from strong vested interests who fear strong oversight. Resistance comes from older members of staff, who have either set up parallel streams of income to compensate for low salaries, or they hinder reforms until their retirement. Tolling and private sector finance are issues of prime concern in many developing countries. However, a common mistake made is that these countries introduce tolling on roads carrying little traffic, do not recognize that the public needs time to become accustomed to paying tolls, and that design standards are too high. Leaseback schemes in which the private sector build the roads and leases it back to the government are gaining acceptance, and although these schemes do not generate income, they can reduce costs. The author recommends that a cross-sectoral mechanism be created to ensure that a coalition of interested parties (government agencies, businesses, and nonprofits) should collaborate to ensure that road safety receives high priority in a government’s overall expenditure program to demonstrate that road safety can be improved at reasonable cost.

Language

  • English

Media Info

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Filing Info

  • Accession Number: 01011029
  • Record Type: Publication
  • ISBN: 0964-4598
  • Files: TRIS
  • Created Date: Nov 29 2005 5:37PM