EU-Financed Peripheral Large-Scale Infrastructure Projects and the White Elephant Syndrome: The Example of Rail Baltica

Viljar Veebel (), Raul Markus () and Illimar Ploom ()
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Raul Markus: Department of Logistics, Tallinn University of Technology, Tallinn, Estonia
Illimar Ploom: Department of Economy, Ragnar Nurkse School of Innovation and Governance, Tallinn University of Technology, Tallinn, Estonia

Acta Oeconomica, 2019, vol. 69, issue 1, 17-39

Abstract: The present study revolves around the question of the appropriateness of “the White Elephant syndrome” to characterise the nature of the planned trans-Baltic railway project Rail Baltica (RB) in terms of its initial financing, long-term profitability and symbolic importance. Whereas, in general, the expected outcome of the project goes well together with the EU Cohesion Policy goals, in its concrete application RB could serve as an example of the tendency of politicians and public servants to institutionally lock themselves into certain irrational choices about publicly financed megaprojects. This is what “the White Elephant syndrome” metaphor illustrates. Methodologically, this paper aims to analyse whether RB meets the common criteria of “the White Elephant syndrome” of public investments or if it can be seen as a sustainable and profitable long-term project after the initial investment.

Keywords: “White Elephant syndrome”; European Union; structural funds; public policy (search for similar items in EconPapers)
JEL-codes: E61 O21 R13 R41 R42 (search for similar items in EconPapers)
Date: 2019
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