Decentralized structures for providing roads : a cross-country comparison
Minimizing costs is often cited as essential for optimizing service delivery. Roads are the oldest, most important infrastructure services provided by governments. They require construction, rehabilitation, maintenance, and administration. Various institutional arrangements affect the degree to which costs can be minimized. Drawing on analyses of experiences with decentralized road provision in eight countries, a longitudinal change analysis of Korea, and vertical and horizontal analysis across states and local governments in Germany, the authors found that the impact of decentralization varies depending on which aspect one is considering: the efficiency of producing road services or the impact on road users. Resources costs are concave, increasing first and decreasing at later stages of decentralization. Preference costs are downward sloping, suggesting that road conditions improve as decentralization advances. In short, decentralization entails initial costs, mostly as losses in economies of scale. But those losses can be outweighed by increases in efficiency when the locus of roadwork is closer to the people. The advantages or limitations of decentralization are function-specific: a) maintenance functions are best provided locally; b) to minimize resource costs, construction should be either completely centralized or completely decentralized; and c) administrative activities are more efficiently provided by local units similar to local maintenance units.
|Date of creation:||30 Sep 1996|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bird, Richard, 1994. "Decentralizing infrastructure : for good or ill?," Policy Research Working Paper Series 1258, The World Bank.
- Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1997.
"Privatization in the United States,"
RAND Journal of Economics,
The RAND Corporation, vol. 28(3), pages 447-471, Autumn.
- Florencio Lopez-deSilanes & Andrei Shleifer & Rober Vishny, 1995. "Privatization in the United States," Harvard Institute of Economic Research Working Papers 1723, Harvard - Institute of Economic Research.
- Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1995. "Privatization in the United States," NBER Working Papers 5113, National Bureau of Economic Research, Inc.
- Antonio Estache, 1995.
"Decentralizing Infrastructure: Advantages and Limitations,"
ULB Institutional Repository
2013/44118, ULB -- Universite Libre de Bruxelles.
- Estache, A., 1995. "Decentralizing Infrastructure. Advantages and Limitations," World Bank - Discussion Papers 290, World Bank.
- Parker, Andrew N., 1995. "Decentralization : the way forward for rural development?," Policy Research Working Paper Series 1475, The World Bank.
- Antonio Estache & Frannie Humplick, 1995.
"Does decentralization improve infrastructure performance?,"
ULB Institutional Repository
2013/44079, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & Sarbajit Sinha, 1995. "Does decentralization improve infrastructure performance?," ULB Institutional Repository 2013/44078, ULB -- Universite Libre de Bruxelles.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1658. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.