1 PRO-POOR GROWTH GROWTH Linkages to transport infrastructure Development Co-operation Directorate Mikael Söderbäck Development Co-operation Directorate

2 TRANSPORT AS A BARRIER TO GROWTH AND POVERTY REDUCTION 1994

TRANSPORT: THE PATTERN OF GROWTH Good roads, canals and navigable rivers the greatest of all improvements” " Good roads, canals and navigable rivers the greatest of all improvements” Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776

4 OECD/DAC POVERTY REDUCTION NETWORK (POVNET) Focus on the economic dimension of poverty ECONOMIC Consumption Income Assets

5 WHAT IS PRO-POOR GROWTH? A pace and a pattern of growth that enhances the ability of poor people to participate in, contribute to and benefit from growth. “Promoting Pro-Poor Growth”, March 2006

6 Annual GDP per cap. growth (%) Annual change in poverty headcount (%) WHAT IS PRO-POOR GROWTH? Data from OPPG country case studies early (1990s to early 20000s) On average 1% GDP growth reduced income poverty by about 1,7%

7 Annual GDP per cap. growth (%) Annual change in poverty headcount (%) WHAT IS PRO-POOR GROWTH? 1% GDP growth resulted in between 0.7% and 2.4% reduction in poverty Data from OPPG country case studies early (1990s to early 20000s)

8 The Four Guiding Principles: TASK TEAM ON INFRASTRUCTURE 1.Use partner-led frameworks as a basis for coordinated donor support 2.Enhance infrastructure’s impact on poor people 3.Improve management of infrastructure investment to achieve sustainable outcomes 4.Increase infrastructure financing and use all financial resources efficiently

9 The curse of remotenessThe curse of remoteness Infrastructure and inequalityInfrastructure and inequality Market accessMarket access Risk and vulnerabilityRisk and vulnerability TRANSPORT: THE PATTERN OF GROWTH

10 CHALLENGES TO TRANSPORT How to make existing transport service markets work better for the poor?

11 CHALLENGES TO TRANSPORT How to improve efficiency of existing transport utilities? Klein et. al “Back to the future”

12 CHALLENGES TO TRANSPORT Infrastructure back on the development agenda: how to avoid the old mistakes?

13 Thank you! THE END OF THE BEGINNING...