Sector Strategy

Regional Transport Sector Strategy

Transport can have a major impact on poverty reduction. Studies showed that investing 1 percent of provincial GDP in transport infrastructure could reduce poverty by 0.5 to 1.0 percent. In one country, an investment of US$50 million in transport in the 15 poorest provinces was estimated to reduce poverty by 6 - 7 percent. 

Most of the infrastructure takes place in urbanized areas, therefore the poor migrate to the cities in a rapid scale. This case is taking place throughout all East Asia. While the percentage of people living in urban areas is still low relative to some regions of the world, the rate of change is such that there will be some 500 million people moving to urban areas over the next 20 years.

To address these issues, the East Asia and Pacific Region has developed a business strategy for the sector which tries to address the specific circumstances of the individual countries as follows:

• In savings-rich, fast-growing countries, introduce best practice, or scale up and support existing policies and programs (Vietnam; China; Thailand)
• In countries faced with fiscal constraints, focus on leveraging private sector finance (Philippines, Indonesia)
• In IDA countries, sustainable infrastructure with high impact on the Millennium Development Goals (Laos, Cambodia, Mongolia, Pacific Islands)

The key focus areas are:

1. Access sustainability
2. Trade facilitation at sub-regional and country levels
3. Urban mobility, efficiency & management
4. Private sector deliveries & financing
5. Capacity Building
6. Externality management: safety, environment and social dimensions

To implement this strategy, the region has identified five platforms of engagement at the global, regional, national/sovereign, sub sovereign and community levels. The corresponding activities are highlighted on the sides:

The key to East Asia’s continuing development is trade-led growth. There is a strong relationship between the openness of a country to trade, and its accessibility. Those countries with the greatest economic performance are those which have the most open economies and have invested in their infrastructure.

A results-oriented planning process at both the national and provincial levels helps align sector and national goals towards the desired outcomes. Under such a framework, responsible agencies would define measurable outcomes reflecting sector goals and ultimately resulting in specific projects and reforms to achieve these goals.

Of critical importance in assisting client countries is to create an appropriate policy environment. One of the strategies is to summarize the results of effectiveness on transport policies, legislation, regulations and their implementation.

In this chart, we use the example of Vietnam. As we look at the basic policies and policy implementation in this country, the efficiency varies for each sector.

The strategy for the region can therefore be summarized as providing investments in infrastructure while assisting our clients to create the appropriate policies so as to facilitate poverty reduction through trade-led growth.

World Bank Transport Sector Strategy

The mission of the transport group in the Bank is to assist clients to reduce poverty by improving the efficiency and equity of transport policy and interventions. The Bank will work with the public and private sectors and communities to enhance the capacity of transport institutions to provide sustainable infrastructure and services.

 Cities on the Move: A World Bank Urban Transport Strategy Review (pdf)
The objectives of the strategy review are (a) to develop a better understanding of urban transport problems in developing and transitional economies, (b) to articulate an urban transport strategy framework for national and city governments, and (c) to identify the role of the World Bank in supporting governments.

 Sustainable Transport: Priorities for Policy Reform (pdf)
In 1996 the Bank undertook a review of the transport sector as a whole, the previous transport sector review having been published in 1972. Sustainable Transport: Priorities for Policy Reform was published to distill the lessons of Bank experience and relate them to the emerging problems of developing and transitional economies. Although there is a wide diversity of problems and experience and no simple solution fits all countries, there are some generally applicable principles and best practices which can be identified as the basis of a policy for more sustainable transport.

More information:
  World Bank Transport Homepage

Back to top