In recent decades many OECD countries have become more decentralised. ECMT member transition countries are following this example or have been advised to do so. The effects of transport policy decentralisation are explored. The costs of decentralisation depend on the mode of transport because of different economies of scale and of networks. Whether decentralisation works for transport depends on the type of decentralisation. In particular, it depends on the transfer of responsibilities being combined with a transfer of financing obligations and powers of taxation. The success of decentralisation is considered dependent on the representation of transport users in policy decision-making. Decentralisation increases the chance of greater accountability but creates the risk of excessive influence being exerted by small interest groups at a local level. This publication contains four introductory reports and a summary of discussions.
Abstract