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EU-Financed Peripheral Large-Scale Infrastructure Projects and the White Elephant Syndrome: The Example of Rail Baltica

Author

Listed:
  • Viljar Veebel

    (Political Science and Strategic Studies, Baltic Defence College, Tartu, Estonia)

  • Raul Markus

    (Department of Logistics, Tallinn University of Technology, Tallinn, Estonia)

  • Illimar Ploom

    (Department of Economy, Ragnar Nurkse School of Innovation and Governance, Tallinn University of Technology, Tallinn, Estonia
    University of Tartu, Center for EU–Russia Studies, Tartu, Estonia)

Abstract

The present study revolves around the question of the appropriateness of “the White Elephant syndrome” to characterise the nature of the planned trans-Baltic railway project Rail Baltica (RB) in terms of its initial financing, long-term profitability and symbolic importance. Whereas, in general, the expected outcome of the project goes well together with the EU Cohesion Policy goals, in its concrete application RB could serve as an example of the tendency of politicians and public servants to institutionally lock themselves into certain irrational choices about publicly financed megaprojects. This is what “the White Elephant syndrome” metaphor illustrates. Methodologically, this paper aims to analyse whether RB meets the common criteria of “the White Elephant syndrome” of public investments or if it can be seen as a sustainable and profitable long-term project after the initial investment.

Suggested Citation

  • Viljar Veebel & Raul Markus & Illimar Ploom, 2019. "EU-Financed Peripheral Large-Scale Infrastructure Projects and the White Elephant Syndrome: The Example of Rail Baltica," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(1), pages 17-39, March.
    • Handle: RePEc:aka:aoecon:v:69:y:2019:i:1:p:17-39
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    More about this item

    Keywords

    “White Elephant syndrome”; European Union; structural funds; public policy;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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