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Infrastructure bottlenecks, private provision, and industrial productivity: a study of Indonesian and Thai cities

Alex Anas (), Kyu Sik Lee and Michael Murray

No 1603, Policy Research Working Paper Series from The World Bank

Abstract: This research project followed an earlier similar project on Nigeria, applying the same methods. A sample of manufacturers was surveyed to document their responses to infrastructure deficiencies in electricity, water, transport, telecommunications, and waste disposal. They found the manufacturers undertook significant expenditures to offset deficiencies in publicly provided infrastructure services, and that changing public policy toward privately supplied infrastructure and changing the pricing of public infrastructure could yield significant savings in social costs. Thailand and Indonesia have made significant strides in following the policies for private sector participation in infrastructure provision. Nigeria, where public infrastructure monopolies still dominate, lags behind, yet stands to benefit most from such policy reform. Government policy toward the industrial organization and pricing of infrastructure sectors can significantly help a developing economy realize the benefits of private sector participation in the provision of infrastructure services.

Keywords: Banks&Banking Reform; Decentralization; Public Sector Economics&Finance; Environmental Economics&Policies; Municipal Financial Management; Banks&Banking Reform; Municipal Financial Management; Urban Services to the Poor; Urban Services to the Poor; Public Sector Economics&Finance (search for similar items in EconPapers)
Date: 1996-05-31
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