Economic Development and Indicators of Infrastructure Provision Regional Workshop on Public-Private Partnership in Transport Cesar Queiroz Roads and Infrastructure Consultant World Bank Transport and Telecommunication Institute Riga, Latvia, March 6-8, 2007

Presentation Outline Developing and developed countries Some measures of infrastructure provision Infrastructure indicators and economic development How private financing can help Some policy implications

Developing and Developed Countries Developing countries include low- and middle-income economies Developed (advanced, industrial, rich) countries denote high- income economies

Classification of Economies EconomiesGNI per capita Low-income $825 or less Middle-Income$826 to $10,065 Lower$826 to $3,255 Upper$3,256 to $10,065 High-income$10,066 or more Source:

Gross National Income (US$ per Capita) Source:

GNI in the Baltic States EconomiesGNI per capita Upper Middle-Income$3,256 to $10,065 Estonia$7,080 Latvia$6,760 Lithuania$7,050 Source:

Extent and condition of road infrastructure in developed and developing countries

Some Measures of Infrastructure Paved road density (PRD), in km per million persons Electricity-generating capacity (ELE), in thousands of kilowatts per million persons Number of telephone connections per million population (TEL) Railroad tracks (RWY), in km per million population

Average Measures of Infrastructure EconomiesPRDELETEL RWY (km/mil pop) (1,000’s of (# of connec. (km/mil kw/mil pop) /mil pop) pop) Low-income , Lower-middle , Income Upper-middle1, , Income High-income10,1502,070673,

Economic Development and Infrastructure GNI ($/pop) Source: Queiroz and Gautam logGNI = 1.39 logPRD R squared: countries

Where and How Can PPP help? In While PPPs are not a panacea, experience in a number of countries, both in the developing and developed worlds, have shown that well structured PPPs can help a country expand its transport infrastructure without overburdening its budget

Some Policy Implications Transport infrastructure is essential for economic development, …then sufficient resources should be made available to maintain and expand a country’s transport infrastructure. Despite relative slowdown, PPPs remain an attractive option for many governments

Thank you!

Cesar Queiroz Road and Transport Infrastructure Consultant Tel Cel