Enhancing Connectivity through Transport Infrastructure
The Role of Official Development Finance and Private Investment
Transport infrastructure is crucial to connect developing countries and help them to boost trade, growth and regional integration. This is because cross-border or long-distance roads and railways as well as international ports and airports are needed to move products and people around in a globalised world.
What can bilateral and multilateral development partners do to help connect developing countries through transport infrastructure? This report takes stock of continental and regional transport plans in Africa, Asia, Latin America and parts of Europe to place development co-operation in context. It then examines the strategies and activities of development partners for transport connectivity. It also takes a hard look at the allocation of official development finance for transport connectivity, particularly in relation to the distribution of private investment for the same types of infrastructure.
How large is the financing gap for transport connectivity to meet the Sustainable Development Goals? What can development partners do to fill this gap? How can they create an environment that can help mobilise more private resources? The report provides a comprehensive picture of the current state of play as well as food for thought on what can be done to move forward. It also features 16 profiles of development partners and their activities for improving transport connectivity.
Overview: Supporting transport connectivity in developing countries
Improving transport connectivity in developing countries is crucial to reduce trade costs, boost economic growth, and promote regional integration. Therefore, to address various deficiencies in transport connectivity, numerous regional or sub-regional plans have been established. These are supported and financed by many development partners, particularly to fill the large financing gap. At the same time, due to the wide geographical coverage, there are specific issues in transport connectivity that need to be addressed, such as environmental and social concerns, co‑ordination and harmonisation, debt sustainability, trade and investment policies, and technological innovation. Development partners - including those beyond the Development Assistance Committee - could further enhance co-ordination at the partner country level as well as through collective mechanisms. They could also address ways to help improve the enabling environment in order mobilise private investment for transport connectivity, particularly for the poorer countries.