Transport

Every policy intervention has an impact on both equity and efficiency. Good transport policy should contribute to poverty reduction by enhancing both. But many governments create transport programs that intervene in only one of these aspects. They may take action for efficiency reasons, introducing major infrastructure investments or service deregulation, or they may act largely for equity reasons, imposing fare controls or subsidizing unprofitable services. The consequences will not necessarily be positive for poor people. While equity in general is good for efficiency, some equity-oriented transport interventions, such as deficit financing arrangements, can have adverse consequences on efficiency—and inefficiency is, in the long run, usually harmful to the poor. Transport policy must therefore explicitly address the distributional effects of efficiency interventions and the efficiency effects of equity interventions.

Transport policies and strategies need to pursue a combination of interventions to meet national poverty-reduction goals. For example, facilitating bicycle transport in urban areas is a pro-poor, cost-effective, and environmentally sound intervention. Improving the management of road agencies and putting maintenance financing on a sustainable basis is also sound business, and holds enormous benefits for poor people both in terms of improved access and of employment opportunities. Reforming loss-making transport agencies to make them profitable and providing more reliable services benefit those who rely on public transport while freeing up huge amounts of public resources.

The first section of this chapter outlines the chapter’s objectives and stresses the importance of addressing both infrastructure and services in transport policies.

Section 22.2 emphasizes the need to understand the impact of transport on three core dimensions of poverty—economic opportunities, empowerment, and security —and the need to understand the way transport intertwines with other sectors. It stresses the importance of public accountability for poverty outcomes, and highlights four strategic principles of a pro-poor policy framework:

• Transport policy should explicitly recognize the transport needs of poor people and poor areas.
• All transport interventions should address both efficiency and equity concerns. Projects that are primarily oriented toward efficiency should also address equity issues, and projects that are targeted at poor people should be implemented efficiently (that is, be guided by the principle of
  least-cost).
• Poor people should be fully compensated for any adverse effects of transport programs.
• All stakeholders should participate fully in transport interventions, including women, the poor and other vulnerable groups.

Section 22.3 asks how policy advisers and planners may examine transport policies, programs and their impact on poverty reduction. It proposes a set of key questions and diagnostic tools.

Section 22.4 addresses policy and strategy options. It suggests three vital approaches that may be taken to reduce poverty through transport: by reforming transport institutions to make them more efficient and effective; by implementing a rural transport policy and strategy; and, similarly, by implementing an urban transport policy and strategy. These areas, we must emphasize, are complementary, sharing many poverty-fighting objectives such as a concern for employment generation, traffic safety, non-motorized transport, gender equality, the special needs of the disabled poor, the HIV/AIDS transport linkage, and the environment.

Section 22.5 focuses on issues of monitoring and evaluation specific to the transport sector, and includes a table of proposed indicators. The guidelines set forth in this chapter build on current knowledge about the links between transport interventions and poverty reduction. They do need testing and refining. But when defining the transport policies and strategies that may reduce poverty, these guidelines serve as a good starting point.

This chapter highlights how integral transport is to any effective poverty-reducing strategy. Its objective is to help decision makers integrate transport interventions into poverty reduction programs. The chapter addresses two key questions: first, how can the transport sector contribute more effectively to poverty reduction: and second, what roles do various actors play in this effort? Our knowledge of the relationship between transport and poverty reduction is still evolving. This chapter seeks to reflect what we know now.

Because transport pervades a country’s economy and its social fabric, answering these questions is a major challenge. Developing the transport sector can open up opportunities for regional social interaction and trade. It also can catalyze broader socioeconomic development. Transport affects poor people as consumers, producers, and workers in transport operations. The poor are also disproportionately affected by the adverse effects of transport—for instance, they may be subject to involuntary resettlement during highway expansion; or they may suffer a higher incidence of traffic accidents, either as passengers or pedestrians. While the potential benefits infuse many aspects of a society, however, their very prevalence makes it difficult to trace and measure the ultimate impacts of transport interventions on the welfare of poor households.

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