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Meeting the Demand for Cross-Country

Infrastructure Databases

The World Bank

INFRASTRUCTURE VICE PRESIDENCY

Conference on Improving Statistics for Measuring Development Outcomes;

June 4-5 2003

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Overview

Context The Monitoring Needs Infrastructure and the

MDGs Emerging Policy Issues The Infrastructure Database Current Status Next Steps Food for Thoughts

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Context

A.The return of infrastructure on the development agenda

B. … and perception that 50 years without records is enough…– Demand for more accountability of the sector from the

Board, Countries, Donors and Watchdogs

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Context

Response: “Policy” component of the

Infrastructure Action Plan – Commitment to improve quantitative and hence

measurable knowledge of the sector– Cross country and cross-sectoral standardization

of information on infrastructure as the first step towards better results and accountability

– Commitment to standardized policy diagnostics– Commitment to investment needs assessments

(to be financed by either public or private)

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The Monitoring Needs

1. Need for MLT & BLT to improve internal management Facilitates decision-making Clarifies accountability (who is responsible for what?)

2.Need to have improved global monitoring tool Initially driven by concern for MDGs ..but eventually will allow linkages between project monitoring,

sector/country outcomes, and global targets

3. General need to better monitor policy work in sector Requires cross country databases on infrastructure along

multiple dimensions– Will also allow sharper analytical work=>data needs

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Infrastructure and the MDGs: Explicit Goals, Targets and Indicators

Goal 7: Ensure Environmental Sustainability Target 9: Integrate the principles of sustainable development into country

policies Infrastructure Indicator: GDP per unit of energy use (as proxy of energy efficiency)

Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water Infrastructure Indicator: Proportion of population with sustainable access to an

improved water source Target 11: By 2020, to have achieve a significant improvement in the lives of at

least 100 million slum dwellers Infrastructure Indicator: Proportion of people with access to improved sanitation Infrastructure Indicator: Proportion of People with access to secure tenure

Goal 18: Develop a Global Partnership for Development Target 18: In cooperation with the private sector, make available the benefits of

new technologies, especially information and communications Infrastructure Indicator: Telephone lines per 1000 people Infrastructure Indicator: Personal computer per 1000 people

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Infrastructure and the MDGs: …Can’t Forget Indirect Effects Towards Other Development Goals

Infrastructure contributes to determine:HealthEducationGrowthPoverty reduction…and Income distribution

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E.g. transport matters to the education MDG:

– In Peru, 56% of children w/in 1 hour travel time to school attend, 42% w/in 1-2 hours, 29% w/in 2-4 hours, 25% above 4 hours)

– Existence of a passable road increases enrollment 4% to 9% (Africa) and girls’ attendance more than doubles with the presence of a paved road in the community (Morocco.)

– Lead exposure from gasoline results in inner city kids suffering from as much as a 4 point IQ loss.

Infrastructure and the MDGs: Indirect Effects Towards Other Development Goals

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Infrastructure and the MDGs: Explicit Targets for WSS Access: the numbers (or their lack)

MDG & WSSD targets:“Reducing by 1/2 the proportion of population without sustainable access to safe drinking water & sanitation”

Reality check:~ Less than 1 in 5 countries on track for WSS~ Less than 1 in 10 low income countries on track~ Proxy indicators – proximity to “hardware”

0

100,000

200,000

300,000

400,000

91-00 01-15*

water supplysanitation

*needed for MDG

# of new people with access to WSS per day -50%

0%

50%

100%

Primaryschool

completion

Childmortality

HIV/AIDSprevalence

Access towater

Access toSanitation

Very Unlikely Unlikely Possible Very Likely No Data

% of countries “on track” to reach MDGs

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Emerging Policy Issues: Monitoring Access is NOT ENOUGH

Access should not be the only policy area to monitor!!! We also need to mainstream other policy areas in the sector:

–Affordability –Quality–Economic efficiency–Financial autonomy of providers –Fiscal dependence of the sector–Institutional development/governance/policy

We need specific indicators to measure these policy areas

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The Cross-Country Infrastructure Database:Examples of Indicators within each Policy Dimension

Water and Sanitation Energy

Access Access to Improved Water Sources (Urban and Rural)

Share of Households using as a main cooking fuel (Modern Fuels and Solid Fuels)

Affordability Average Water Tariff

Construction Costs of Sanitation Facilities

Average Electricity End-User Prices

Quality of Service Water Supply Time Commercial Perception of Electricity Service

Efficiency

Technical Unaccounted for Water

Wastewater Treated to at least Primary

Energy Consumption per unit of GDP

Economic Total Factor Productivity Total Factor Productivity

Financial Autonomy Return on Equity Net Revenues

Fiscal Costs Taxes and Subsidies Capital and Recurrent

Institutions/Governance Decentralized Management (y/n) Market Structure (vertical separation?)

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The Cross-Country Infrastructure Database:Examples of Indicators within each Policy Dimension

Transport Services ICT

Access Access to All-Season Road Telephone Subscribers per 1000 people

Affordability Average Pump Price for Diesel Cost of 3-minute Local Call

Quality of Service Rate-Injury Accidents Faults per 100 mainlinesUnmet Demand

Technical Aspects Transportation to Work – Modal Structure

Mobile CompetitionLong-distance Competition

Efficiency

Technical Paved Roads

Economic Total Factor Productivity Total Factor Productivity

Financial Autonomy ??? Net revenue

Fiscal Costs ??? ???

Institutions/Governance ??? Private Investment as share of Total

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Current Status: Plenty of Anecdotes, Little systematic Data Collection

Only data available is on access & some aspects of quality for utilities and some scarce statistics on transport

– Quality of data is not equal across sectors (ICT is exception)– Little known on affordability, efficiency, financial viability, fiscal

costs or governance of the infrastructure services

Why?

=>…usual public good problem….all want it, no-one wants to pay for it!

No pressure from interested private parties (external debt data)

No major multinational political commitment (HIV, education,…) Evidenced in little concern or interest for development of local capacity to generate

policy relevant data

Residual financing claims by any single institution is unrealistic

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Next Steps

A. Come up with full diagnostics of data sources, availability, reliability, and policy relevance (per-sector)…see ANNEX for a first cut

B. Identify comparative advantages among institutions to collect the much needed data

a) Internal: INF, Sector Anchors, DEC, PREM, Global Programs, Regions

b) External: IEA, WHO-JMP, USAID, UN-Habitat, Platts UDI,…

C. Coordinate the “joint-production” effort

D. Follow up with statistical Capacity Building in Client-Countries

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Food for Thoughts

… a possible allocation of responsibility across the partners interested in improving the accountability of the sector

…to launch the discussion

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Food for ThoughtsInstitutional Comparatives Advantages by Policy Dimension

Water and Sanitation Energy

Access WHO/UNICEF/World Bank (JMP)World Bank (LSMS)USAID (DHS)

IEAWorld Bank (LSMS)USAID (DHS)

Affordability World Bank (Benchmarking WSS)Providers (Utilities)World Bank (LSMS)

IEA/OLADEWorld BankWorld Bank (LSMS)

Quality of Service World Economic ForumWorld Bank (ICA)WHO/UNICEF/World Bank (JMP)

World Economic ForumWorld Bank (ICA)Pllats UDI (Utility Data Institute)

Technical Aspects WHO/UNICEF/World Bank (JMP)World Bank (Anchors)

IEAWorld Bank (Anchors)Platts UDI (Utility Data Institute)

Efficiency

Technical World Bank (Benchmarking WSS)Providers (Utilities) )/? (Non utilities)

Providers (Utilities)/? (Non utilities)

Economic World Bank (DEC/REDIs) World Bank (DEC/REDIs)

Financial Autonomy World Bank (REDIs)Providers (Utilities) )/? (Non utilities)

World Bank (REDIs)Providers (Utilities) )/? (Non utilities)

Fiscal Costs World Bank (REDI)IMF

World Bank (REDI)IMF

Institutions/Governance World Bank (REDI) World Bank (REDI)

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Food for ThoughtsInstitutional Comparatives Advantages by Policy Dimension

Transport Services ICT

Access World Bank (Sub Saharan Transport PP)World Bank (LSMS)USAID (DHS)UNESCAP

ITUUPU

Affordability World Bank (Railways Database)World Bank (LSMS)

ITUWorld Bank (LSMS)

Quality of Service World Bank (WBES) World Bank (ICA)UN-HabitatIRF Roads/Global Road Safety Partnership

ITUUPUWorld Bank (WBES) World Bank (ICA)

Technical Aspects UN-Habitat/World Bank World Bank (Anchors)/ITU

Efficiency

Technical World BankProviders

ITUUPU

Economic World Bank (DEC/REDIs) World Bank (DEC/REDIs)

Financial Autonomy World Bank (Anchors-REDIs)Providers (Utilities)

World Bank (REDIs)Providers (Utilities)

Fiscal Costs World Bank (Anchors-REDI)IMF

World Bank (REDI)IMF

Institutions/Governance World Bank (Anchors-REDI) World Bank (REDI)

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Food for Thoughts

…to launch the discussion on :

Who does it?

How is it done (add-on vs. new efforts)?

How frequently (every 2-5 years)?

And … Who pays for it?

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ANNEX

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The Infrastructure DatabaseEnergy at a Glance

"Readily Available" Performance Indicators for Energy

ACCESSAccess to Electricity Network (% of population)

RuralUrban

Households Using as Main Cooking Fuel: Modern Fuels (%total households)

UrbanRural

Solid Fuels (%total households)UrbanRural

AFFORDABILITYAverage Electricity End-User Prices (US$/kWh)

ResidentialNon-residential

Spending on Electricity (%Household Expenditure)Spending on Alternative Sources of Energy (%Household Expenditure)

QUALITYElectricity Supply Quality (Index)

TECHNICAL DIMENSIONSNet Production by Fuel Type (Hydro, Thermal, Biomass, etc.) (% Total Production)Main Energy Source for Households (piped gas, gas in containers, coal, electricity) (%hsehlds per energy source)Energy Consumption per unit of GDP (Kg of Oil Equivalent/1,000 PPP GDP)Electricity Transmission and Distribution Losses (%Total Output)

DRAFT

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The Infrastructure DatabaseEnergy at a Glance

Non-Readily Available Performance Indicators for Energy

AFFORDABILITYTheoretical Expenditure on Subsistence Level on Modern Sources of Energy (%Household Income)Tariff Structure

ResidentialNon-residential

QUALITYElectricity Supply Time (hours/day)

EFFICIENCYTechnical Efficiency Index

FISCAL COSTCapitalRecurrent

FINANCIAL AUTONOMYReturn on Equity

INSTITUTIONAL DEVELOPMENTMarket Structure (Vertical Unbundling/Horizontal Unbundling)Decentralized Management (yes/no)

DRAFT

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The Infrastructure DatabaseWater and Sanitation at a Glance

"Readily Available" Performance Indicators for Water and Sanitation

ACCESSAccess to Improved Water Sources (% of population)

RuralUrban

Urban Access to Improved Sanitation (% of population)Sewerage %of population)On-site Sanitation (% of population)

Rural Access to Improved Sanitation (% of population)AFFORDABILITY

Water Average Tariff (US$/m3/year)Spending on Water Services (%Household Expenditure)

QUALITYCommercial Perception of Water Service (index based on quality perception)Water Supply Time (hours/day)Time spent in water collection (time to water source)

TECHNICAL DIMENSIONSUnaccounted for Water (%)

DRAFT

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The Infrastructure DatabaseWater and Sanitation at a Glance

Non-Readily Available Performance Indicators for Water and Sanitation

AFFORDABILITYAverage Connection Charge for WaterAverage Connection Charge for SanitationAverage Construction Cost of Sanitation FacilitiesTheoretical Expenditure on Subsistence Level (%Household Income)

QUALITYUrban Water Effectively Disinfected (% Water Production)Urban Wastewater Treated to at least Primary Level (% Wastewater)

TECHNICAL DIMENSIONSRural Water Supplies that are Functioning (% total supplies?)

EFFICIENCYTechnical Efficiency Index

FISCAL COSTCapitalRecurrent

FINANCIAL AUTONOMYReturn on Equity

INSTITUTIONAL DEVELOPMENTMarket Structure (Vertical Unbundling/Horizontal Unbundling)Decentralized Management (yes/no)

DRAFT

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The Infrastructure DatabaseTransport at a Glance

"Readily Available" Performance Indicators for Transport

ACCESSAccess to 'All-Season' Road Network (% of population)Vehicle 'Ownership' (%households)

Motorized VehiclesNon-Motorized Vehicles

AFFORDABILITYAverage Pump price for Super Gasoline (US$/liter)Average Pump price for Diesel Fuel (US$/liter)Spending on Transport (%Household Expenditure)Average Rail Tariff

Freight (US$/ton-Km)Passenger (US$/Passenger-km)

Ports Handling Costs (US$)QUALITY

Travel Time (minutes/one-way work trip)Paved Roads (in fair/good conditions) (%of total roads)Rate-Injury Accidents (per 100M vehicle-km)Transport Supply Quality (index based on quality perception)Port Facilities Quality (index based on quality perception)Railroads Quality (index based on quality perception)Air Transport Quality (index based on quality perception)

TECHNICAL DIMENSIONSTransport Modes - Modal Structure (%work trips per mode)

DRAFT

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The Infrastructure DatabaseTransport at a Glance

Non-Readily Available Performance Indicators for Transport

ACCESSAccess to 'Formal' Service (% of population)Access to 'Informal' Service (% of population)

AFFORDABILITYAverage Passenger Tariff (US$passenger-Km) ???

Inter-cityIntra-cityRural

Average Freight Tariff (US$/ton-Km) ????Inter-cityIntra-cityRural

Theoretical Expenditure on Subsistence Level (%Household Income)QUALITY

Total Time Travelling (minutes/day/household)TECHNICAL DIMENSIONS

Information on Seaport TrafficEFFICIENCY

Technical Efficiency IndexFISCAL COST

CapitalRecurrent

FINANCIAL AUTONOMYReturn on Equity

INSTITUTIONAL DEVELOPMENTDecentralized Management (yes/no)

DRAFT

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The Infrastructure DatabaseICT at a Glance

"Readily Available" Performance Indicators for ICT

ACCESSTelephone subscribers per 100 inhabitants

Main telephone lines per 100 inhabitantsCellular subscribers per 100 inhabitants

Mainlines per 100 inhabitants outside largest cityInternational Voice Traffic (mins)Internet Users per 100 inhabitantsPersonal computers per 1000 inhabitantsInternet Hosts per 100 inhabitantsNumber of Internet Service ProvidersNumber of letter-post items posted per inhabitantTotal postal savings account deposits (US$) as % of GDPRadios per 1000 inhabitants

AFFORDABILITYCost of local phone call (US$ per 3 mins)Cost of phone call to US (US$ per 3 mins)Cost of cellular local call (US$ per 3 off-peak minutes)Internet Service Provider access charges ($ per 30 off-peak hours)

QUALITYPhone faults per 100 mainlinesUnmet Demand: Waiting list for fixed phone line as % of fixed subscribers

DRAFT

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The Infrastructure DatabaseICT at a Glance

Non-Readily Available Performance Indicators for ICT

EFFICIENCYTechnical Efficiency Index

FISCAL COSTCapitalRecurrent

FINANCIAL AUTONOMYTelecom: RevenuePostal: Net revenueReturn on Equity

INSTITUTIONAL DEVELOPMENTTelecom: Independence of regulator (Y/N)Telecom: Percentage ownership of the incumbent operatorTelecom: Local PSTN Service competition (Full, Partial, Monopoly)Telecom: Mobile competition (Full, Partial, Monopoly)Telecom: International Long Distance competition (Full, Partial Monopoly)Telecom: Leased Lines Competition (Full, Partial, Monopoly)IT: ISP Competition (Full, Partial, Monopoly)Postal: Monopoly threshold of item to be mailed (grams)Postal: Number of other operators in the letter-post sector

DRAFT