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Transportation and world development
176
Future Transport Policy.
Book
J.
Future Transport Policy provides an historical review of the evolution of transport policy since the end of World War II. Chapter 3 looks in more detail at urban transport policy, including attempts to “restrain” the use of private transport and to regulate the provision of public transport. Chapter 4 discusses the regulation and control of transport, and brings out the multiple and often conflicting objectives of government in this area. Its treatment of the successful deregulation of air and rail transport in the United States is inadequate, and its reference to “ultrafree competition” suggests a concern that competition should be prevented by government from going too far. Chapter 5 deals with international regulation and coordination, and shows how governments use transport policies to violate the principles of laissez-faire. Chapter 6 deals with transport and development, and discusses whether, for example, government should provide infrastructure in congested or in uncongested areas. The private provision of infrastructure is, inexplicably, hardly discussed.~ Chapter 7 deals with the social aspects of transport-policy and how governments, in their desire to please everyone, must meet conflicting requirements. The authors do not explain how these conflicts can be resolved, but seem to believe that attempts at resolution can do
Reviews more good than harm. The eighth and final chapter discusses the effect on transport policy of technological change, which the authors accept as unpredictable. The authors deliberately omitted a final chapter in which conclusions are summarized, on the grounds that a summary of each chapter is presented, and that the results are so diverse that a general summary would serve no useful purpose. Wilfred Owen, in contrast, does offer a concluding chapter which summarizes the findings and recommendations arising from the six earlier ones. Chapter One, “A Global Overview,” sketches the development of the global economy following the invention of the wheel in about 5000 B.C. in what is now Iraq. It contrasts transport development in rich and poor countries and points out that.some problems, like urban traffic congestion, are common in all societies. Chapter Two, ‘*Mobility and World Food Supplies,” describes the international food transportation network and points out that lack of mobility is a critical factor in the low agricultural productivity in the Third World. Chapter Three,“Supporting Industrial Development,” discusses the roles of different modes in freight movement, with special reference to India, China and Japan. Chapter Four deals with urban transport, and emphasizes the relationships between transport and urban design. In the dicsussion of urban transit modes, however, it is disappointing that underground transit is assumed to be necessarily rail transport-a strange omission from an author who lives in the vicinity of the successful Shirley Highway busway in suburban Washington, D.C. Chapter Five, “Personal Mobility and Opportunity,” stresses the opportunities in employment, education, and leisure that are enhanced by personal mobility. While looking at the future of telecommunications, the author avoids the assumption that proliferation of telephones will lead to less travel; mobility is higher in New York than in London, notwithstanding the superior telephone service in the United States. And mobility is higher in London than in Lagos, which has an atrocious telephone service. Chapter Six, “IMarshalling the Necessary Resources,” discusses how funds might be raised to close the gap between financial needs and available revenues, especially in Third World countries. The possibilities of private and public financing are examined, and the author’s proposals even include a world tax on energy, travel, trade, or other transactions, dedicated to a world transportation fund. Another innovative proposal is for an international transportation center that would collect worldwide transportation information, identify priority needs, and design effective international assistance programs. Despite the clear merits of these volumes, both might be faulted for their underlying assumption that governmental involvement in the planning and provision of transport is not only essential but beneficial. Maybe it is, but that is something that should be explained, mode by mode, not assumed.
Book Reviews Button and Gillingwater give their game away on the first page, where they declare that “Transport
. . requires the existence of a large bureaucracy and administration to ensure its efficient running.” Their bias against private markets is shown in the curious statement that “for competitive markets to operate in their pure form [whatever that may mean] a further assumption has to be met-that perfect information is freely available” (Button and Gillingwater, p. 89). This is clearly nonsense: it is precisely because “perfect information” (whatever that may mean) is not available that competitive markets are useful. There probably is a role for government in transport-it is helpful for road users to have uniform traffic signs and to know on which side of the road to expect opposing traffic-but a book on transport policy would be strengthened by an explanation of appropriate private and public roles in different circumstances. Certainly, the authors should not have accepted at face value the platitudinous jumble of transport objectives attributed to a county council in England:
“to strike a balance between the needs of the economy, the environment, the pedestrian. the public transport passenger. the commercial vehicle operator and the private car user, to obtain the maximum freedom of movement for people and goods in such a way that achieves a prosperous economy and a civilized way of life.” (Button & Gillingwater, p. 201)
Button and Gillingwater mention the implication that public transport is far too important to be left to the market, and maybe it is in some circumstances. But travellers in London-where the public sector is the monopoly supplier of both road space and public transport-might be excused for feeling that public transport is too important to be left to government! This point must be made, because Button and Gillingwater underestimate the importance of paratransit (shared taxis and minibuses) which, they state, offers “supplementary capacity” in “many Third World countries” (Button and Gillingwater, p. 73). In fact, such vehicles are reported to have carried all passenger transport in pre-Communist Saigon, and today they bear the major transit load in many cities, including those as large as Manila and Buenos Aires. Yet, due to transport policy in Britain, the private sector was not allowed to run them in Britain for most of the period covered by Future Transport Policy and is still [ 19881 not allowed to run them in London. It is hoped that the authors of Future Transport Policy will consider including a final chapter in the next edition of their book which will review the roles
177
of government in transport policy and indicate those that have been beneficial and those that have not. Wilfred Owen identifies a transport policy role that has proved damaging in the extreme to many countries, namely “the preservation of uneconomic rail services and . . . the prevention of the growth of road transport by truck” (p. 51). One cannot help wondering how many of the countries which protect existing modes in the twentieth century would have had any railways at all had they followed similar policies in the early nineteenth century when canals were the prime mover of long-distance traffic. Owen’s recommendations are worthy of serious consideration, and the establishment of an international transportation center could certainly fulfill many useful informational purposes. For example, comprehensive urban transport statistics do not appear to be collected anywhere-not even by the international financing agencies. To the extent that the future can be more easily predicted on the basis of the past, selected data, collected on a consistent basis, could do much to improve the quality of transport forecasting and planning. His recommendation for a worldwide transport tax to finance transport facilities in Third World countries is more difficult to support. Who would get the funds? If they were allotted to governments, they would stand a good chance of being wasted, for the reasons indicated by Button and Gillingwater. And such funds would generally not be required by private investors, who could raise money privately for profitable schemes as they did in the nineteenth century (when conditions were much more difficult than they are today) for massive investment in North, Central, and South America. And if it is assumed that roads cannot be financed privately (a point not deeply explored in both volumes), a dedicated fuel tax can raise large sums, as pointed out by Owen in his discussion of the U.S. Interstate Highway system, possibly the greatest public works enterprise ever built, and mostly funded by a fuel tax of four cents to the gallon! Is it not condescending, and insulting to the peoples and governments of the Third World, to assume that their economic development must depend on hand-outs from others? These volumes are written in nontechnical language and offer those in the front-line, such as officials concerned with transportation, excellent overviews of their subject matter. Indeed, they are essential reading for anyone interested in a worldwide view of transport development and policy. GABRIEL ROTH The Services Group 1815 North Lynn Street, Suite 200 Arlington, VA 22209, U.S.A.
Future Transport Policy.
Book
J.
Future Transport Policy provides an historical review of the evolution of transport policy since the end of World War II. Chapter 3 looks in more detail at urban transport policy, including attempts to “restrain” the use of private transport and to regulate the provision of public transport. Chapter 4 discusses the regulation and control of transport, and brings out the multiple and often conflicting objectives of government in this area. Its treatment of the successful deregulation of air and rail transport in the United States is inadequate, and its reference to “ultrafree competition” suggests a concern that competition should be prevented by government from going too far. Chapter 5 deals with international regulation and coordination, and shows how governments use transport policies to violate the principles of laissez-faire. Chapter 6 deals with transport and development, and discusses whether, for example, government should provide infrastructure in congested or in uncongested areas. The private provision of infrastructure is, inexplicably, hardly discussed.~ Chapter 7 deals with the social aspects of transport-policy and how governments, in their desire to please everyone, must meet conflicting requirements. The authors do not explain how these conflicts can be resolved, but seem to believe that attempts at resolution can do
Reviews more good than harm. The eighth and final chapter discusses the effect on transport policy of technological change, which the authors accept as unpredictable. The authors deliberately omitted a final chapter in which conclusions are summarized, on the grounds that a summary of each chapter is presented, and that the results are so diverse that a general summary would serve no useful purpose. Wilfred Owen, in contrast, does offer a concluding chapter which summarizes the findings and recommendations arising from the six earlier ones. Chapter One, “A Global Overview,” sketches the development of the global economy following the invention of the wheel in about 5000 B.C. in what is now Iraq. It contrasts transport development in rich and poor countries and points out that.some problems, like urban traffic congestion, are common in all societies. Chapter Two, ‘*Mobility and World Food Supplies,” describes the international food transportation network and points out that lack of mobility is a critical factor in the low agricultural productivity in the Third World. Chapter Three,“Supporting Industrial Development,” discusses the roles of different modes in freight movement, with special reference to India, China and Japan. Chapter Four deals with urban transport, and emphasizes the relationships between transport and urban design. In the dicsussion of urban transit modes, however, it is disappointing that underground transit is assumed to be necessarily rail transport-a strange omission from an author who lives in the vicinity of the successful Shirley Highway busway in suburban Washington, D.C. Chapter Five, “Personal Mobility and Opportunity,” stresses the opportunities in employment, education, and leisure that are enhanced by personal mobility. While looking at the future of telecommunications, the author avoids the assumption that proliferation of telephones will lead to less travel; mobility is higher in New York than in London, notwithstanding the superior telephone service in the United States. And mobility is higher in London than in Lagos, which has an atrocious telephone service. Chapter Six, “IMarshalling the Necessary Resources,” discusses how funds might be raised to close the gap between financial needs and available revenues, especially in Third World countries. The possibilities of private and public financing are examined, and the author’s proposals even include a world tax on energy, travel, trade, or other transactions, dedicated to a world transportation fund. Another innovative proposal is for an international transportation center that would collect worldwide transportation information, identify priority needs, and design effective international assistance programs. Despite the clear merits of these volumes, both might be faulted for their underlying assumption that governmental involvement in the planning and provision of transport is not only essential but beneficial. Maybe it is, but that is something that should be explained, mode by mode, not assumed.
Book Reviews Button and Gillingwater give their game away on the first page, where they declare that “Transport
. . requires the existence of a large bureaucracy and administration to ensure its efficient running.” Their bias against private markets is shown in the curious statement that “for competitive markets to operate in their pure form [whatever that may mean] a further assumption has to be met-that perfect information is freely available” (Button and Gillingwater, p. 89). This is clearly nonsense: it is precisely because “perfect information” (whatever that may mean) is not available that competitive markets are useful. There probably is a role for government in transport-it is helpful for road users to have uniform traffic signs and to know on which side of the road to expect opposing traffic-but a book on transport policy would be strengthened by an explanation of appropriate private and public roles in different circumstances. Certainly, the authors should not have accepted at face value the platitudinous jumble of transport objectives attributed to a county council in England:
“to strike a balance between the needs of the economy, the environment, the pedestrian. the public transport passenger. the commercial vehicle operator and the private car user, to obtain the maximum freedom of movement for people and goods in such a way that achieves a prosperous economy and a civilized way of life.” (Button & Gillingwater, p. 201)
Button and Gillingwater mention the implication that public transport is far too important to be left to the market, and maybe it is in some circumstances. But travellers in London-where the public sector is the monopoly supplier of both road space and public transport-might be excused for feeling that public transport is too important to be left to government! This point must be made, because Button and Gillingwater underestimate the importance of paratransit (shared taxis and minibuses) which, they state, offers “supplementary capacity” in “many Third World countries” (Button and Gillingwater, p. 73). In fact, such vehicles are reported to have carried all passenger transport in pre-Communist Saigon, and today they bear the major transit load in many cities, including those as large as Manila and Buenos Aires. Yet, due to transport policy in Britain, the private sector was not allowed to run them in Britain for most of the period covered by Future Transport Policy and is still [ 19881 not allowed to run them in London. It is hoped that the authors of Future Transport Policy will consider including a final chapter in the next edition of their book which will review the roles
177
of government in transport policy and indicate those that have been beneficial and those that have not. Wilfred Owen identifies a transport policy role that has proved damaging in the extreme to many countries, namely “the preservation of uneconomic rail services and . . . the prevention of the growth of road transport by truck” (p. 51). One cannot help wondering how many of the countries which protect existing modes in the twentieth century would have had any railways at all had they followed similar policies in the early nineteenth century when canals were the prime mover of long-distance traffic. Owen’s recommendations are worthy of serious consideration, and the establishment of an international transportation center could certainly fulfill many useful informational purposes. For example, comprehensive urban transport statistics do not appear to be collected anywhere-not even by the international financing agencies. To the extent that the future can be more easily predicted on the basis of the past, selected data, collected on a consistent basis, could do much to improve the quality of transport forecasting and planning. His recommendation for a worldwide transport tax to finance transport facilities in Third World countries is more difficult to support. Who would get the funds? If they were allotted to governments, they would stand a good chance of being wasted, for the reasons indicated by Button and Gillingwater. And such funds would generally not be required by private investors, who could raise money privately for profitable schemes as they did in the nineteenth century (when conditions were much more difficult than they are today) for massive investment in North, Central, and South America. And if it is assumed that roads cannot be financed privately (a point not deeply explored in both volumes), a dedicated fuel tax can raise large sums, as pointed out by Owen in his discussion of the U.S. Interstate Highway system, possibly the greatest public works enterprise ever built, and mostly funded by a fuel tax of four cents to the gallon! Is it not condescending, and insulting to the peoples and governments of the Third World, to assume that their economic development must depend on hand-outs from others? These volumes are written in nontechnical language and offer those in the front-line, such as officials concerned with transportation, excellent overviews of their subject matter. Indeed, they are essential reading for anyone interested in a worldwide view of transport development and policy. GABRIEL ROTH The Services Group 1815 North Lynn Street, Suite 200 Arlington, VA 22209, U.S.A.