Harinder S. Kohli - Choices for efficient private provision of infrastructure in East Asia, Page 961
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Choices for efficient private provision of infrastructure in East Asia, Page 961
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Choices for Efficient Private Provision of Infrastructure in East Asia
Edited by Harinder Kohli, Ashoka Mody, and Michael Walton
The World Bank Washington, D.C.
Page ii
Copyright 1997 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A.
All rights reserved Manufactured in the United States of America First printing August 1997
The opinions expressed in this report do not necessarily represent the views of the World Bank or its member governments. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
ISBN: 0-8213-4053-0
At the World Bank, Harinder Kohli is senior operations officer in the vice president's office of the East Asia and Pacific Regional Office, Ashoka Mody is principal financial economist in the Project Finance and Guarantees Department, and Michael Walton is director, Poverty Reduction, Poverty Reduction and Economic Management Network.
Page iii
Contents
Foreword
v
1 Making the Next Big Leap: Systemic Reform for Private Infrastructure in East Asia
Harinder Kohli, Ashoka Mody, and Michael Walton
1
2 Organizing the Government for Efficient Private Participation in Infrastructure: Lessons from Australia
Don Russell
21
3 Contracting for Private Provision of Infrastructure: The Malaysian Experience
Yahya Yaacob and G. Naidu
43
4 Regulating Private Involvement in Infrastructure: The Chilean Experience
Alejandro Jadresic
54
5 Managing Environmental and Resettlement Risks and Opportunities in Infrastructure
Bradford S. Gentry
69
6 Financing Private Infrastructure: Lessons from India
Montek S. Ahluwalia
85
Page v
Foreword
East Asian economies face important structural challenges that must be addressed if they are to maintain their rapid economic growth, improve living standards, and continue the momentum toward a greater role in the global economy. Two of the challenges broadly confronting the region are meeting the massive demand for infrastructure and adapting the role of the state to the changing economic environment. Unless these challenges are metand met soonthe region's strong growth cannot be sustained for long.
To promote growth, East Asian economies have traditionally paid greater attention to infrastructure than other developing countriesand their public delivery mechanisms have generally been more efficient. But the continued growth in demand for services, along with changing technology and regulatory approaches, requires a shift from the public to the private sector in infrastructure ownership and service delivery. In infrastructure and elsewhere, East Asian economies are beginning to see a transformation in the role of government and in the regulatory framework for private business. A more hands-off approach is gradually being adopted as increasingly sophisticated economies make strong government intervention both ineffective and unnecessary.
The chapters in this book draw on country experiencesin East Asia and in other regions to reflect on the options and choices that East Asian policymakers face in infrastructure. They address issues relating to the design of a strategic approach to private involvement, regulatory choices (including the greater play of competition), different methods of contracting private suppliers, management of environmental and resettlement problems when the private sector takes the lead, and new ways of financing private infrastructure.
Earlier Versions of the chapters were presented at a high-level conference on private involvement in infrastructure held in Jakarta, Indonesia, in September 1996. Sponsored by the World Bank and the government of Indonesia, this conference brought together East Asian government ministers and senior private sector representatives to identify and discuss major stumbling blocks to broader and more effective private participation in infrastructure.
This book is intended to bring the deliberations of the Jakarta meeting to a wider audience. A second book, Infrastructure Strategies in East Asia: The Untold Story, edited by Ashoka Mody, is being simultaneously published by the World Bank's Economic Development Institute. This historical overview of East Asian infrastructure focuses on the traditional public role in planning and delivery. Together, these two books should provide policymakers and the private sector with a more thorough understanding of the often difficult tradeoffs faced when making choices relating to the delivery of infrastructure.
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