Unit costs for low-volume road construction and maintenance are low compared with those for higher-level roads. The problem is that in many countries this network is vast, and the total cost requirements to ensure minimum access are enormous. This problem is a particular challenge in developing countries where more than two-thirds of the poor reside in rural areas. The option of private ownership and financing of low-volume roads is proposed. It is argued that the Swedish model for low-volume road management and financing is simple and efficient and can easily be adapted to a variety of circumstances in both rich and poor countries. In Sweden, private road associations manage two-thirds of the road network at less than half the cost and with better results than do the government road agencies. This model is based on a well-structured institutional framework for private ownership of low-volume roads that includes a law on private roads and financial and technical incentives. The government provides legal and financial incentives for local property owners to associate and assume responsibility for their roads. The result is a private-public partnership in which government subsidizes road costs with grants from the budget. Increasing efficiency and effectiveness of public expenditures and working in partnership with the private sector are highly relevant goals in both developed and developing countries. This paper is also available on CD-ROM (see C 30152 CD-ROM).
Abstract