 This topic deals with the implementation of rural transport infrastructure, with a focus on the development of contractors within a country and the use of appropriate technology, particularly labor-based construction technologies. Information is provided on the benefits of using local firms; difficulties and constraints to local contractor development; appropriate policies, reforms and interventions; and delivery mechanisms for expanding labor-based construction techniques. In the past, the implementation of rural transport infrastructure has been impeded by the ineffectiveness of public works ministries to delivery efficient and timely infrastructure. High costs and the lack of involvement with rural populations have also limited the impact of implementation, especially the ability of local populations to benefit from investments. Implementation of rural infrastructure can many times be greatly improved through the introduction of competitive pressures to road agencies (commercialization) and the use of local labor during construction (labor-based construction).
KEY ISSUES The following list includes the key things you need to know about the implementation of rural transport infrastructure, particularly, with respect to the key issues associated with contractor development and the application of labor-based technologies. - Potential Benefits from the Use of Local Firms
Recent World Bank research indicates that, in general, government road agencies are overstaffed, and their equipment and other resources are under-utilized. By contrast, local consulting and contracting capacity is, generally, under-developed. In addition, for a variety of reasons, a substantial proportion of the work is done by foreign firms. The development of local firms, therefore, can have substantial developmental impacts, including increased efficiency, the enhancement of national capacity, economic growth and employment, and the development of local professional skills and institutions.
- Difficulties and Constraints
It is unlikely that the simple act of transferring road work from ministries to local firms will have a magical effect. The practical problems of implementing a road program through a public enterprise remain the same. As a broad generalization, while local private companies have more simple objectives, sharper and more immediate motivation, and are able to operate much more flexibly, they require the support of a competitive and well-regulated commercial environment. Suggested action plans include: encouraging the creation and management of a stable market, within which enterprise can flourish; sensitive management of the necessary organizational changes, especially the transfer of staff from government agencies, the local enterprises, formulation of effective forms of contract; and support for a programme of training and consultancy, preferably based on local institutions. - Policies, Reforms and Interventions
Against this background, the evidence is that, generally, local firms are not yet sufficiently developed in size, numbers or substance to have a significant effect, and so require an effective programme of assistance. Given that the objective is to foster the development of enterprising, flexible, problem-solving firms, it is axiomatic that any programme of assistance must be directed towards self-development rather than subsidy and protection; that is, the emphasis of the programme should be to reward successful enterprise, while providing a minimum level of protection against risk. - Delivery Mechanisms for Expanding Labor-Based Methods
Initiating projects is important for achieving needed reforms. If properly designed, projects help demonstrate the technical and economic feasibility of labor-based methods, thereby building support for the technology, and enable program designers to refine specific reform strategies through an iterative process. In order to launch a labor-based program, designers must select a delivery mechanism that is suitable for the country. This choice can affect the program’s ability to achieve its defined objectives and expand in the future. - Community Contracting
Increasingly, communities are responsible for service planning, making informed choices, providing financing and other contributions, and ultimately, service management. There is growing interest in approaches that delegate financial management and procurement responsibilities to the communities themselves, giving communities full control over investment resources and project implementation. Read more on this subject at the World Bank Direct Financing, Contracting and Procurement Website.
KEY READINGS Publications on implementation of rural transport infrastructure are available from: Available Through Regular Library Services - Larcher and Petts, 1997, Selective Experience of Training, Contracting and Use of Intermediate Equipment for Labor-Based Road Works, MART Working Paper No. 2, Institute of Development Engineering, Loughborough University, Leicestershire, LE11 3TU, UK.
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