Transport investment as a prerequisite for regional growth in developing countries

Abstract

A viable and efficient system of modern transportation is an essential element of infrastructure upon which the expanding economies of the developing countries are based. Analyses of transport problems in such countries have tended to emphasize problems associated with road, rail, sea and air transport and frequently confined discussion either to engineering issues or to the geographic distribution of facilities. Relatively few studies have attempted to view the economic geography of transport as a whole or to examine the relationship between transport development and economic growth. These two aspects of transport geography are of particular significance in developing countries, especially in view of their need to achieve maximum benefits within the development process. Attention is directed to the fact that transport difficulties have often hindered development by retarding the exploration of natural resources, industrialization, expansion of trade and, in some cases, the achievement of national unity. The lack of a comprehensive transport investment plan along with inappropriate road construction technology and inadequate financial resources are found to be the main contributing factors to transport system deficiencies. For this reason various methods of financing transport projects in capital-scarce developing countries are examined and alternative sources identified. Various road construction technologies are discussed. Labor-intensive road construction approaches are recommended as an appropriate technology for capital-scarce developing countries. Finally, alternative transport investment planning processes are analyzed and recommendations for their improvements are made.