Public transportation provided by small private operators has attracted much attention, particularly in the developing world. In general, private services have been found to be both effective and profitable in contrast to those provided by large public systems. In many countries, public and private transportation services run side by side, which makes planning complex. An example from Seoul, South Korea, is discussed that features an exclusively private bus system and a publicly operated subway network. The two systems display quite different characteristics: the bus services were established long ago and are run by 90 predominantly small operators who are financially independent. Most of the subway is new, capital-intensive, and operated by a large public corporation that is heavily subsidised. Because the subway network was greatly expanded in 1985, the government planned to integrate the two disparate systems. The task proved so complex, however, that the government chose to do nothing. The obstacles to the integration plan are examined, and the bus companies' spontaneous adjustment to the subway expansion is reviewed. The discussion reveals how a viable strategy for planned change can be designed.
Abstract