How Effective Are Second-Generation Road Funds? A Preliminary Appraisal
Underfunded, inefficient road maintenance is a perennial problem in many developing economies. To address it, some countries have created "second-generation" road funds that are financed by fuel levies and managed by boards representing the interests of road users. Macroeconomists often oppose such funds, arguing that this earmarking of revenue reduces fiscal flexibility. Some argue that such road funds should be seen as an interim step toward fully commercialized road maintenance or good public sector governance--and hence subject to sunset provisions. Decisions on whether to retain (or create) such funds should then be based on their effects on resource allocation, operational efficiency, and rent seeking. Using evidence on new road funds in Africa, this article finds that they have not undermined fiscal flexibility. Moreover, they have improved the administration of road funding (in terms of execution capability) and its outputs (in terms of road conditions). So, although criteria for assessing road funds remain relevant, the funds should not automatically be considered temporary mechanisms. But when establishing new funds, government's continued role in approving spending on road maintenance should be explicitly recognized. Copyright 2003, Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 18 (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: https://academic.oup.com/wbro
More information through EDIRC
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:wbrobs:v:18:y:2003:i:1:p:113-128. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.