[sustran] Re: world bank urban transport strategy

[Negron Poblete Paula]

Concerning Walter Hook's request about if transport services can deteriorate
even if fares are not regulated, I think of Santiago's case. In Santiago, buses
have been totaly deregulated since the 80's. The authorities don't control
fares at all, they're supposed to be let in "market's hands". But even if fares
are not controlled, service is bad, as a consequence of the competition between
buses' operators themselves. Since there's no control at all, vehicles are not
in good conditions, in part because operators want to spend the minimum in order
to offer the service.

___________________________
Paula NEGRON POBLETE
Faculte de l'Amenagement
Universite de Montreal

On Wed, 15 Nov 2000, ITDP wrote:

> I've sent some comments to the  author of the World
> Bank's new Urban Transport Strategy, generally favorable, but with a few
> 
> areas of disagreement.  I'm wondering if anyone has any empirical
> evidence regarding the issues below...
> 
> I expressed the view that the current Strategy's heavy focus blaming
> public transit fare price controls for the deterioration of public
> transit in developing countries (and hence destroying services for the
> poor) was a bit one-sided.  He notes that in many developing countries
> controlling public transit fares led to the deterioration of these
> systems and their replacement eventually with often more expensive
> paratransit systems, particularly in lower income neighborhoods.
> 
> My contention is that the takeover of public transit systems by private
> paratransit systems was not entirely due to transit fare controls, and
> that there are no doubt cases where
> 
> a) transit services did not deteriorate despite the continuation of
> transit fare controls, and
> b) transit services deteriorated anyway even though there were no
> transit fare controls and prices were allowed to increase.
> 
> Does anyone know of documented empirical cases for these two?   I would
> guess that transit fares in Curitiba are regulated and the services are
> not deteriorating, (operators are paid per km at a rate determined by
> the state).  Does anyone have any concrete examples other than Curitiba?
> 
> I would also guess that in Indonesia during the economic crisis bus
> fares increased recently (due to fuel price increases) yet the vehicles
> are still deteriorating (incomes for the system are still lower due to
> falling ridership because of the economic crisis).  I also believe in
> much of Central Europe public transit systems have increased their
> prices closer to commericial cost recovery ratios, yet the systems
> continue to deteriorate.  Whether they would have deteriorated more or
> less if fares had not increased is of course difficult to say, but a
> case could be made that they would have deteriorated 'about the same.'
> 
> Any opinions or data on this?  I promised to get back to Ken on this.
> 
> Thanks
> Walter Hook
> ITDP
> 
> 
> 
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