six strategic decisions for transportation in mega cities -- gakenheimer(1994)

8/10/2019 Six Strategic Decisions for Transportation in Mega Cities -- Gakenheimer(1994)

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Urban Economics & Finance

Six strategic decisions for

transportation in mega-cities

(by Gakenheimer, 1994)

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A stable set of basic objectives concerning

urban economy, living and environment

Productivity

Poverty Alleviation

Environment

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Policy framework and strategy redefining the

urban challenge in LDCsFirst: should move towards a broader view of urbanissues, a view that moves beyond housing and residentialinfrastructure, and that emphasizes the urban

productivity of the urban economy and the need toalleviate the constraints on productivities

Second: the productivity of the urban poor should beenhanced by increasing demand for labor and improving

their access to infrastructure and social servicesThird:More attention should be devoted to reversing thedeterioration of the urban environment

(Source: World Bank (1991). Urban Policy and Economic Development: An agenda for the1990s, Washington D.C.: World Bank, P.3)

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General strategic objectives

Guide physical development

Enhance productive economic other infrastructures,

poverty alleviation, relationships

Program and price infrastructure Structure metropolitan governance

Each of these general strategic objectives includes

transportation facilities and services as one of its keyelements

Complementation by supporting decisions for housing

and land development4


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Six strategic issues in urban transportation

How to price and finance transportation

How to choose modes

How to improve the mobility of the people

How to control automobile usage

How to protect the environmentHow to create sustainable institutions

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On environment and transportation policy

Two principal impacts of transportation on the

environment are:

Air pollution

Land consumption

Technology side

Limiting automobile use Enforcement

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Pricing & financing urban transportation

In most cities public transportation is under

priced

Option 1: Raise P towards MC of service

In general, city should not operate a service that

it cannot self-finance

Everyone benefits from improved access; say,through a new transit

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Pricing & financing urban transportation

Subsidy: In principle Yes, but How to levy charges on secondary beneficiaries

Tax on employers to finance on urban transportation, baseon the size of the company payroll (as done in France)

Land valorization Benefit levies simplified forms of betterment charges in the

form of special assessment districts

Privatization: An alternative Rationale: Public agency transit services tend to become

inefficient, decline in quality, absorb increasing governmentsubsidies

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Informal sector transportation Informal

sector transportationDifficult to regulate

Politically aggressive

Public authority can bargain for enforcement of

regulations (service-rendering regulations?)

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Central issue on the mobility of the poor

Premise: Our blunt tool of analysis that uses

simply aggregate time saved in travel as a basis

for justifying transportation investment is of verylimited value

The effort here meshes our concern for

productivity with the effort to alleviate poverty

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Central issue on the mobility of the poor

(contd)Two key questions are:

Where does endowment of transportation service

improve employment possibilities, improveeducation, or lower consumer prices?

What current travel behaviors of the poor show theywould benefit from better transit?

The potential pay-off from incorporating the poorin the public transportation system is very high insocial, political and economic terms for everyone

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The strategic pattern for urban policy and

planningBasic objectivesProductivity Poverty alleviation Environment

General strategic objectives

Guide physical Enhance Programme and Structuredevelopment productive price metropolitan

economic infrastructure governance

relationship

Transportation strategiesHow to price and finance transportation How to control automobile usage

How to choose modes How to protect the environment

How to improve the mobility of the poor How to create sustainable institutions

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six strategic decisions for transportation in mega cities -- gakenheimer(1994)

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