Directions in Development - Infrastructure

Can low-cost carriers take off in developing countries? This timely publication identifies the premises and prerequisites of the LCC model and assesses whether this business model could be successful in other less-developed countries, particularly in Sub-Saharan Africa. The authors discuss how these airlines successfully transformed inefficient and stagnant markets in developed countries and examine which industries benefited from the increased affordability of air travel. They find that the tourism sector, in particular, has experienced a strong impact, a sector that has great potential for further growth, especially in emerging countries. This book outlines the role that international development agencies such as the World Bank Group can play in facilitating the development of LCCs in its client countries. It is a must-read for all those who are interested in the development of air service, the challenges and opportunities air carriers are experiencing in emerging markets, and the particularities of the low-cost airline industry.

The development aid community has placed a great deal of emphasis on the need for rural mobility in Sub-Saharan Africa (SSA). Thus far, most development partners and governments in SSA have relied on two overarching assumptions when dispensing transport aid-that most households in rural areas in Africa are not connected to markets and therefore need a road passable for a truck, and that roads with high levels of service are crucial in order to achieve high economic impact. Based on data collection from various sources in three SSA countries, 'Rural Road Investment Efficiency' demonstrates that from a cost-benefit perspective, the additional cost of extending an all-weather road two more kilometers to the farmer's door outweigh the benefits in most cases. 'Rural Road Investment Efficiency' seeks to enhance the effectiveness of aid allocated for rural transport in SSA and calls into question the need for full implementation of all benchmarks set forth in the Rural Access Index (RAI) in SSA. This book will be an essential reference for government supervisory authorities and infrastructure experts throughout the region.

Latin America and the Caribbean does not have the infrastructure it needs, or deserves, given its income. Many argue that the solution is to spend more; by contrast, this report has one main message: Latin America can dramatically narrow its infrastructure service gap by spending efficiently on the right things.

Unlocking Investment in Water and Sanitation for the Poor. This report analyzes the potential for domestic private sector involvement in providing safe water and improved sanitation in developing countries. It focuses on Bangladesh, Benin, Cambodia, Indonesia, Peru, and Tanzania, examining market opportunities and constraints. The study identifies key challenges, including inefficient business models and policy constraints, that prevent local enterprises from tapping into the large market for serving poor and nonpoor households. It offers recommendations for stimulating demand, improving business viability, and creating a more supportive investment climate. - Understand market potential in developing economies - Identify key challenges to private sector involvement - Discover policy recommendations for improving access This report is for governments, development partners, NGOs, and private investors seeking sustainable solutions to water and sanitation challenges. Jemima Sy, Robert Warner, and Jane Jamieson offer insights for harnessing entrepreneurial capabilities and addressing critical development needs.

The natural endowment of the Democrat Republic of Congo, in the form of land, minerals, and forests, is unparalleled. The right mix of policies has the potential to unleash incentives that could transform the economy. However, transport infrastructure in the DRC is amongst the sparsest and most dilapidated in the world, and this lack of infrastructure is likely a significant constraint to growth. This work considerably advances the information that is available to infrastructure planners, and provides methodologies that could be used to make more informed decisions to identify trade-offs between economic growth and environmental endangerment. The approach draws from the state-of the art across a variety of disciplines – spatial (GIS) analysis, spatial econometrics, economic theory, and conservation biology – to create an approach that can guide the location and level of investments by estimating benefits and environmental costs at a highly disaggregated spatial scale. The analysis proceeds in four related phases that combine economic assessments with geospatial analysis. First transport costs are estimated using GIS techniques. A variety of econometric procedures are then used to determine the economic effects of changing transport costs. Second, highly disaggregated spatial data is used to estimate the effects of roads on forest cover, and the resulting biodiversity that would be at risk from local deforestation. Next the two spatial estimates are combined to simulate the effects of different policies. Finally this provides a series of maps that identify regions where there are large trade-offs between economic and ecological goals. Overall the results suggests that the siting of infrastructure needs to consider impacts at the very outset of the planning process. This report presents both new data and new techniques that can be used to identify areas of opportunity, risk, and potential for REDD+ financing. Such upstream planning has been rendered both feasible and cost effective with the availability of geo-referenced information on forest cover and economic data. This report provides the data and easily comprehensible maps for such an exercise.