• Tosustainitseconomicandsocialdevelopment,Bangladeshrequiresasoundholisticdevelopmentapproachtodrivesustainableandinclusivegrowthacrossregions.

• Thedevelopmentofeconomiccorridorsisaneffectivepolicyinstrumentintegratingindustry,infrastructure,urbanservices,andinstitutionalandregulatoryframework.

• TheenvisagedSouthwestBangladeshEconomicCorridor(SWBEC)isalignedwiththegovernment’sSeventhFive-YearPlanandisexpectedtobringhugeeconomicgains.

• TheSWBECwillinvolveprojectsacrossmultiplesectorsaimedatprovidingarobustinfrastructureframework.

• Asoundinstitutionalframeworkwillprovideinter-agencycoordinationinplanning,prioritizing,anddevelopingeconomiccorridorprojects.

• Inadoptingeconomiccorridorsasadevelopmentstrategy,itisvitalthatthegovernmentshowstrongpoliticalwilltoensurethetimelyimplementationofcorridorprojects.

ADBBRIEFSNO. 104

DECEMBER 2018

KEY POINTS Realizing the Potential of Bangladesh through Economic Corridor Development

ISBN978-92-9261-422-5(print)ISBN978-92-9261-423-2(electronic)ISSN2071-7202(print)ISSN2218-2675(electronic)PublicationStockNo.BRF189712-2DOI:http://dx.doi.org/10.22617/BRF189712-2

ECONOmIC CORRIDOR DEvElOPmENT: A POlICY FOR INTEGRATED GROWTH Havingsurpassedthelowermiddle-incomethresholdinJuly2015,Bangladeshseekstobuildontheeconomicgainsithasreapedoverthepastdecadestoachievesustainablegrowthandattainuppermiddle-incomestatus.Therefore,itispertinentforBangladeshtofocusoninfrastructure,logistics,researchanddevelopment,andindustrialdiversificationtoremaincompetitiveinachangingeconomiclandscape.Thecountryneedstoimplementpolicyreformstoimprovethebusinessenvironment,reducethecostofdoingbusiness,anddiversifyitsindustrialbase.Exploitingthefullpotentialofthecountry’svariousregionsandfindingnewsourcesofgrowthwillbecriticalforBangladeshtoembarkonandsustainahighergrowthtrajectory.

Thus,Bangladeshneedsaholisticdevelopmentstrategysuchaseconomiccorridordevelopmenttodrivestructuraltransformationandregionallybalanceddevelopment.Economiccorridordevelopmentisanappropriateintegrativestrategyforthecountryasitisproventobeaneffectivetooltoenableindustrialproliferation,createjobs,upgradeinfrastructure,aligninfrastructuredevelopmentwithurbanandsocialagglomerations,unifydomesticmarkets,andlinkproductioncenterswithglobalvaluechains.EconomiccorridorswoulddecentralizedevelopmentawayfromDhakaandChattogram,createjobs,andcreatemarketsinregionslaggingbehind.

Thedevelopmentagendaunderlyingthecurrentdevelopmentplans,includingtheSeventhFive-YearPlanandPerspectivePlan,isconsistentwiththeeconomiccorridordevelopmentapproach—rapideconomicgrowthandpovertyreduction,employmentgeneration,broad-basedstrategyofinclusivenessandasustainabledevelopmentpathwaywithappropriatemeasuresforprotectionoftheenvironment.

Soon Chan HongSeniorEconomistSouthAsiaDepartmentAsianDevelopmentBank

ADBBRIEFSNO.104

2

INDuSTRIAlIzING THE SOuTHWEST REGION THROuGH ECONOmIC CORRIDOR DEvElOPmENT

TheeffectsofeconomicdevelopmentneedtoencompasstheentirelengthandbreadthofBangladesh.ThesouthwestregionofBangladesh,forexample,lagsbehindthecountry’sotherregions,buthasmuchpotentialfordevelopment.Khulna,thethird-largestcityinBangladesh,aswellasseveraltradegatewaysarelocatedinthesouthwestregion.Khulnaholdsgreatpotentialforattractinginvestmentsandtheregionisseenasanewgrowthcenter.Economiczoneswereestablishedintheregionandseveralmoreareplannedtoattractnewinvestmentsandrevitalizetheindustries.

Withadequateinvestmentininfrastructureandhumancapital,andsupportivepoliciesandinstitutions,thesouthwestregionwillnotonlycatchupwiththerestofthecountry,butcanalsocontributesignificantlytothecountry’soveralldevelopment.Torealizetheregion’spotential,ananalyticworkforthedevelopmentofSouthwestBangladeshEconomicCorridor(SWBEC)wasundertaken,asthefirstphaseofBangladeshEconomicCorridordevelopment.TheSWBECisenvisagedfromJashoreinthesouthwestregiontothecapitalcityofDhaka,andwillextendtoseveralkeygateways.

Theenvisagedeconomiccorridorcanhelpdiversifytheexportbasketbyfacilitatingparticipationinexistingandprospectiveindustries’valuechains.Thesuccessofready-madegarments(RMG)nowneedstobeexpandedtootherindustries.TheSWBECComprehensiveDevelopmentPlan(CDP)recommends14majorindustriesforpromotion:foodprocessing(fishandcrustaceans),foodprocessing(agro-based),RMG,bicycles,automobiles,shipbuilding,pharmaceuticals,footwear,leather-basedproducts,furniture,ceramics,glass,plasticproducts,andtireindustries.Gradually,toincreasetheoverallvaluegenerationwithinthecountry,Bangladeshwillhavetolooktowardincreasingtheshareofdomesticvalueaddition,byexpandingalongthevaluechainofthese14industriestowardthemorelucrativepartsofthevaluechain,i.e.,designingandmarketing,throughbackwardandforwardintegration.

HOW WIll BANGlADESH BENEFIT FROm ECONOmIC CORRIDOR DEvElOPmENT?

TheCDPhighlightsthatwithawell-coordinatedimplementationoftheproposedcorridorunderthebusiness-inducedscenario,totaloutputforthesouthwestregionby2050isestimatedtoreach$148 billion(Figure1).Thisis3.3timeshigherthantheestimateunderthebusiness-as-usualscenario.Employmentintheregionisseentoincreaseto35millionby2050,orthreetimestheestimateunderthebusiness-as-usualscenario(Figure2).Ofthis,around25millionofadditionalemploymentisprojectedtobegeneratedfromcorridor-inducedactivities.Theboosttohumancapital,technologicallevels,infrastructure,andbackwardlinkageswillenablethecountrytodiversifyintohigher-valueproductsandretainitsoverallcompetitivenessinthecurrentexportbasket.

Figure 1: Corridor Industrial Output, Business-As-usual vs. Business-Induced Scenarios

160140120100

80604020

-

$ bi

llion

2017 2022 2025 2030 2040 2050

BAU BIS

BAU=business-as-usual,BIS=business-inducedscenario.

Note:Theoutputpresentedonlyrepresentsoutputofthe14primaryindustriesselectedforpromotionintheeconomiccorridor.Thestudyemphasizesthatnon-inclusionofotherpotentialsectorsintheshortlistdoesnotinanywayreflectableakfuturefortheminBangladesh.Thepurposebehindtheshortlistingistofocusandconcentratethelimitedresourcesavailableonfewersectors.

Source:ADB. Southwest Bangladesh Economic Corridor Comprehensive Development Plan.Unpublished.

Figure 2: Total Employment Generation from the Corridor Region, Business-As-usual vs.

Business-Induced Scenarios

40353025201510

50

mill

ion

peop

le

2017 2022

3 3 6 6 7 8 811

21

11

35

9

2025 2030 2040 2050

BAU BIS

BAU=business-as-usual,BIS=business-inducedscenario.

Source:ADB.Southwest Bangladesh Economic Corridor Comprehensive Development Plan.Unpublished.

RealizingthePotentialofBangladeshthroughEconomicCorridorDevelopment

3

SOuTHWEST BANGlADESH ECONOmIC CORRIDOR’S ROlE IN ADvANCING REGIONAl INTEGRATION

Economiccorridorsareviewedasmajordeterminantsofeconomicintegration.TheeconomiccorridorwillnotonlyimprovetransportgatewaysandconnectivitywithinBangladesh,butalsohasthepotentialtoenhancethecountry’sroleaslandbridgebetweenSouthAsiaviaIndiaandSoutheastAsiaviaMyanmar.Themaintransporttrunk,withextensionstokeygatewayssuchasMonglaPort,PayraPort,andBenapoleLandPort,willformagridnetworkthatwilldrivedevelopmentinthesouthwestsectionofBangladeshandinfluenceneighboringregions.PayraPortcanserveastheregionalgatewaytoMyanmar,whileMonglaPortcanserveasthegatewayforthelandlockedstatesofBhutanandNepal,andeasternstatesofIndia.

ThiswillensureintegrationwithinternationalcorridorsastheSWBECisco-alignedwithinternationaltransportcorridorprojectsundertheSouthAsiaSubregionalEconomicCooperation,theBayofBengalInitiativeforMulti-SectoralTechnicalandEconomicCooperation,andtheSouthAsianAssociationforRegionalCooperation.

Therefore,theSWBECisseentoserveasablueprintforenhancedconnectivityandincreasedcompetitivenessinSouthAsia.Itwillnotonlyincreaseintraregionaltradeandinvestment,butalsoplayapivotalroleinintegratingeconomiesacrosstheregion.

ECONOmIC CORRIDOR DEvElOPmENT AND INTEGRATED INFRASTRuCTuRE DEvElOPmENT STRATEGY

Torealizesuchexpansion,thedevelopmentofindustrialagglomerationneedstobesupportedbyanintegratedstrategytodeveloprobustinfrastructure,whichwillbenefitnotonlythesouthwestregion,butalsotheentirecountry.Thefinalobjectiveistohavewell-functioningindustrialclusterssupportedbyurbanagglomerationswithadequatesocialandphysicalinfrastructure,whichinturnwillbeconnectedtohighlyefficienttradegatewaysandmarketsbymeansofanefficientmultimodaltransportnetwork.

TheCDPrecommendsawidevarietyofprojectsspreadacrossvarioussectors(Figure3)andaimstoaddresstheneedsoftheeconomiccorridorcomponents—theindustrialsector,urbanagglomeration,andtradeandtransportcorridor.Anefficienttransportandlogisticsinfrastructure,consideredasabackboneforsupportingindustrialagglomeration,hastobedevelopedinthecorridorregiontoattractcentersofproductionandconsumption,andfacilitategreateraccesstomarkets.TheCDPestimatesthatinvestmentsintransformationalinfrastructurecoveringthesevarioussectorsamountingtoapproximately$140billioninthenext30yearshavetoberealized.

Figure 3: Sectors with Economic Corridor Projects

Source:ADB.Southwest Bangladesh Economic Corridor Comprehensive Development Plan.Unpublished.

Airports landports Power sector

Water supply

Solid waste management

Education infrastructure

Technical institutions

Healthcare infrastructureDrainage

Roads

Railways

Waterways (sea and inland)

ADBBRIEFSNO.104

4

INSTITuTIONAl mECHANISm FOR SuCCESSFul ECONOmIC CORRIDOR DEvElOPmENT

Thedevelopmentofeconomiccorridorsandrelatedinfrastructurewillinvolverigorouspolicycoordinationamongvariousministriesandmeticulousimplementationofvariousprojectsatthecentralandlocaladministrativelevels.Thus,asoundinstitutionalandgovernanceframeworkisnecessarytoensureintegratedplanning,development,andmanagementoftheeconomiccorridorwith(i)physicalandindustrialinfrastructure,(ii)urbanandsocialamenitiesforattractingaskilledworkforce,and(iii)aninvestmentpromotionandfacilitationmechanism.Asavitalaspectofeconomiccorridordevelopment,aninstitutionalandregulatoryframeworkwilladdresskeysoftelementsofaneffectivecorridordevelopment(Figure4).

Typically,multiplegovernmentagenciesdischargethesefunctionsand,intheabsenceofanappropriateinstitutionalmechanismforcoordination,canresultinissuespertainingtoplanning,coordination,prioritization,andfinancing.Forinstance,limitedsynergiesbetweenregionaldevelopmentplansandcorridordevelopmentplanswouldimpactlandacquisitionandconsolidation,aswellasplanningofurbancentersandamenitiesinthevicinityofindustrialhubs.

Thedevelopmentandmanagementofeconomiccorridorsrequiresefficientcoordinationandatime-boundaddressingofoutstandingissues.Globalexperiencesincorridordevelopmentunderscoretheestablishmentofadedicatedinstitutionorinstitutionsatthecorridorand/ornodelevelforplanning,conceptualization,development,andmonitoringofcorridorandnodeprojects.Asidefromestablishingacorridormanagementauthority,integratedplanninganddevelopmentof“industrialtownships”withurban,social,andindustrialamenitiesrequiresamultitierinstitutionalframeworkinvolvingallconcernedgovernmentagencies,withoversightbyahigh-rankingauthorityatthecentralandregionallevels.

lEARNING FROm OTHERS: DEvElOPING ECONOmIC CORRIDORS IN INDIA

Indiaadoptedeconomiccorridordevelopmentasakeystrategytoboostthemanufacturingsector.Higherproductivityanddynamisminthecountry’smanufacturingsectorisexpectedtofast-trackinclusiveandsustainableeconomicgrowth.ThegovernmentlaunchedtheMakeinIndiainitiativeasanintegratedgrowthstrategyanchoredonthecreationofeconomiccorridorsacrossvariousregionsinthecountrythatwillserveasthebackboneofagloballycompetitivemanufacturingsector.Thesecorridorsincludethe(i)Delhi–MumbaiIndustrialCorridor,(ii)Bengaluru–MumbaiEconomicCorridor,(iii)Chennai–BengaluruIndustrialCorridor,(iv)EastCoastEconomicCorridor,and(v)Amritsar–KolkataIndustrialCorridor.

InIndia,thedevelopmentoftheindustrialcorridorsfallsundertheaegisoftheNationalIndustrialCorridorDevelopmentandImplementationTrust(NICDIT),anapexbodyundertheadministrativecontroloftheDepartmentofIndustrialPolicyandPromotion. TheNICDITistaskedtocoordinate,monitor,andunifydevelopmentoftheindustrialcorridors.TheformationoftheNICDITisexpectedtoenablethedevelopmentandimplementationofindustrialcorridorprojectsacrossIndiabybringinginaholisticplanninganddevelopmentapproach.

TheNICDIT’sboardoftrusteesischairedbythesecretaryoftheDepartmentofIndustrialPolicyandPromotion.Theboardalsoincludessecretariesofthedepartmentsofexpenditure,economicaffairs,roadtransportandhighways,andshipping,apartfromthechairmanoftheRailwayBoardandthechiefexecutiveoftheNationalInstitutionforTransforming Indiaasmembers.

WhiletheNICDITistaskedwithoversightresponsibilityindevelopingthecountry’sindustrialcorridors,anodalagencyisalsohighlyessentialtocoordinatethemasterplanpreparationandinfrastructuredevelopmentintheindustrialnodes.Inthisregard,theLegislative

Figure 4: Key Functions Associated with Economic Corridor Development

Source:ADB.Southwest Bangladesh Economic Corridor Comprehensive Development Plan.Unpublished.

• Marketing of the corridor to potential investors and processing of registrations or licenses for investors

Developing master plans

Developing trunk infrastructure

Developing urban infrastructure

Developing industrial infrastructure

Acquiring land

Investment Promotion and Facilitation

• Focus on land zoning and specification of land end-use to ensure planned industrial and urban development

• Acquisition or pooling of land to support development of requisite industrial and urban infrastructure

• Development of supporting and connectivity infrastructure outside the identified zones

• Development of urban infrastructure in the urban centers

• Development of industrial infrastructure in the identified zones

RealizingthePotentialofBangladeshthroughEconomicCorridorDevelopment

5

AssemblyofIndiapassedtheAndhraPradeshIndustrialCorridorDevelopmentBill(LABillNo.27of2017)tohelptheDepartmentofIndustriestoexpeditethetransformationoftheindustrialnodes inthestate.

TheAndhraPradeshIndustrialCorridorDevelopmentAuthority(APICDA)shallprovidefortheestablishment,planning,development,operation,maintenance,management,andregulationofallindustrialcorridorsinthestateofAndhraPradesh.OntopoftheAPICDA’sagendaisthepreparationofamasterplanforeachnodeandtheirperipheries,promotionofprivatesectorparticipation,andraisingoffundsfromthemarkets.Othercriticalfunctionsoftheauthorityinclude:

• acquiring,procuring,holding,andallottinglandwithinthenodeandperipheries;

• developingprojectsandcoordinatingwithconcerneddepartmentsforthefasterexecutionofvariousprojects;

• ensuringprovisionofsufficientamenities,infrastructurefacilities,publicandcivicfacilities,andmakingsustainablearrangementsforadequatemaintenancethereofwithinthenode,peripheralareas,andinter-nodeareasandinfrastructurefacilities,whichwillincluderoads,watersupply,power,commonfacilitycenters,andeffluenttreatmentfacilities,andothers;

• providingmunicipalservicesandurbantransportfacilitieswithinthenodes;

• ensuringglobalstandardsofeaseofdoingbusiness;and• marketingtheindustrialcorridorsintheglobalarena.

Theauthorityshallconsistoftheboard,anexecutivecommittee,andthecommissioner.ThechiefministerofAndhraPradeshshallbethechairpersonoftheboard,andthesecretaryoftheIndustriesandCommerceDepartmentshallbemember-secretary.

Theapprovedbillalsospecifiesthefollowing:

• powersofthegovernmentwithregardtothedeclaration,delineation,andjurisdictionofindustrialcorridorsandnodes;

• establishmentoftheauthority,theboard,andtheexecutivecommittee,includingthecomposition,powers,obligations,andfunctionsthereof;

• controlandregulationinindustrialcorridors;• offensesandprosecution(incasesofunauthorizedschemesor

projects);• usercharges,fees,andrecoveryofdues;and• stategovernment’ssupportanddelegationofpowers.

TheestablishmentoftheAPICDAisexpectedtogiveimpetustofast-trackthedevelopmentoftheinfrastructureintheindustrialnodeswithintheVisakhapatnam–ChennaiandChennai–Bengaluruindustrialcorridors.

RECOmmENDATIONS FOR INSTITuTIONAl FRAmEWORK FOR THE BANGlADESH ECONOmIC CORRIDOR

Developingeconomiccorridorsinvolvestheexecutionofconcretestrategiesandactionplans.Prioritizingandcoordinatingimplementationofthenecessaryphysical,urban,andindustrialinfrastructurealongthecorridorrequireintegratedindustrial–urbanagglomerationdevelopment.Asidefrominfrastructuredevelopment,thecoordinationofrelateddevelopmentinitiativesalonganeconomiccorridorbecomesmorediffcultasmoreareasgetinvolved,asthereisawiderangeofinstitutionalfactorstoconsider.

Bangladeshisalreadyrampingupthedevelopmentofeconomiczoneswithintheproposedcorridor.Asacomplementarydevelopmentstrategy,economiccorridordevelopmentwillprovidetheinstitutionalandlegalframeworkforplanning,developing,andmanagingindustrialareas.However,inBangladesh,themandateforfunctionsinvolvingplanninganddevelopmentforurbanandindustrialinfrastructureandfacilitiesrestswithdifferentministriesanddepartments,acommonsituationinmostdevelopingcountries(Figure5).

TheSWBECCDPunderscorestheimportanceofasoundinstitutionalandgovernanceframework,whichisnecessarytofacilitateeffectivepolicycoordinationandprojectimplementationandcreatearegulatoryenvironmentthatwillpromoteeaseofdoingbusiness.Consideringthevariousagenciesinvolvedinawiderangeoffunctionsindevelopingeconomiccorridors,functionalinstitutionalarrangementsandsoundregulatoryprovisionswillempowerappropriateentitiestodevelopintegratedplansforcoordinatedindustrialandurbandevelopmentintheidentifiednodesandforessentialtrunkinfrastructure.AswiththeNICDITandtheAPICDAinIndia,aninstitutionalsetupappropriatefortheconditionsinBangladeshwouldhavetobeestablishedforthedevelopmentoftheSWBEC.

TheSWBECCDPrecommendsaninstitutionalframeworkthatwillprovidethevitalcoordinationinplanning,prioritizing,anddevelopingcorridorinfrastructureprojectsamonggovernmentministriesandagenciestoensureoptimumdeploymentofavailableresourcesandharmonizationinprojectcommissioning.Acentral-levelagencymustbedulyempoweredandtaskedwiththeoveralldevelopmentandmanagementofthecorridoranditsindustrialnodes.Thiscentralcorridorplanninganddevelopmentagencyischargedwithawiderangeoffunctions,includingmasterplanningoftheentirecorridorinfluencearea(synergizingurbanandindustrialplanningwhiletakingcognizanceofexistingmasterplans);monitoringofallinfrastructuredevelopment;andinvestmentpromotionforthecorridoramongpotentialinvestors,alongwithinvestmentfacilitationthroughoperationalizingeaseofdoingbusinessinitiatives.

ADBBRIEFSNO.104

6

Thisinstitutionalframeworkalsohastobecomplementedbyregulatoryreformsthatwillfosteraconduciveinvestmentclimateensuringtimely,objective,andtransparentapprovals;andconsistencyinpoliciesandimplementation.

STRONG POlITICAl COmmITmENT

Arobustinstitutionalframeworkthatwillfacilitatemultisectoralcoordinationneedstobeunderpinnedbystrongpoliticalcommitmentandownershipoftheeconomiccorridorprogram.Thesuccessorfailureofaneconomiccorridordevelopmentstrategyislargelyinfluencedbypoliticalwillandparticipationoftheprivatesector.AfocusedvisionandsustainedpoliticalwillfromleadersinboththepublicandprivatesectorarekeytoachievingthefullbenefitsoftheSWBEC.

ItisimportantthattheGovernmentofBangladeshdemonstrateitscommitmenttoundertakeeconomiccorridordevelopment.ThedevelopmentofeconomiccorridorsinBangladeshneedstobeidentifiedasadevelopmentstrategyinthegovernment’supcomingnationaldevelopmentplans,i.e.,EighthFive-YearPlan,PerspectivePlan2041,povertyreductionstrategy,urbanandregionaldevelopmentplans,andothers.Thiswillensureproperandtimelyimplementationofplannedandrecommendedprogramsandprojectstoimproveefficiencyandproductivityofthedifferentsectorsoftheeconomy.

Giventhisvisionandpoliticalwill,Bangladeshcanuseeconomiccorridorstoovercomedevelopmentchallengesandtapthehugeopportunities.Theimplementationofeconomiccorridorprojectswillsynergizeanddirectthecollectiveenergiesofthevarioussectorstowardtheattainmentofnationalgoalsofanindustrializedanddiversifiedeconomy,leadingtoinclusiveandsustainablegrowth.

Figure 5: Key Stakeholders for Corridor Development in Bangladesh

Source:ADB.Southwest Bangladesh Economic Corridor Comprehensive Development Plan.Unpublished.

Developing master plans

Developing trunk infrastructure

Developing urban infrastructure

Developing industrial infrastructure

Acquiring land

Private Sector: Infrastructure development and/or management (public–private partnerships, special purpose vehicles, and others)

1. Ministry of Housing and Public Works

2. Ministry of Local Government, Rural Development, and Cooperatives

3. Bangladesh Economic Zone Authority

1. Central Government2. Bangladesh Economic

Zone Authority

1. Ministry of Local Government, Rural Development, and Cooperatives

2. Ministry of Power, Energy, and Mineral Resources

3. Ministry of Rural Transport and Bridges

4. Ministry of Railways5. Ministry of Shipping6. Ministry of Civil

Aviation and Tourism

1. Ministry of Housing and Public Works

2. Ministry of Local Government, Rural Development, and Cooperatives

3. Ministry of Power, Energy, and Mineral Resources

4. Ministry of Road Transport and Bridges

5. Bangladesh Economic Zone Authority, Bangladesh Export Processing Zone Authority, and Bangladesh Investment Development Authority

1. Ministry of Power, Energy, and Mineral Resources

2. Ministry of Road Transport and Bridges

3. Bangladesh Economic Zone Authority, Bangladesh Export Processing Zone Authority, and Bangladesh Investment Development Authority

RealizingthePotentialofBangladeshthroughEconomicCorridorDevelopment

7

REFERENCES:AsianDevelopmentBank.Southwest Bangladesh Economic Corridor

Comprehensive Development Plan.Unpublished.

GovernmentofIndia.2017.LABillNo.27of2017.The Andhra Pradesh GazetteNo.27.21November.

GovernmentofIndia,DepartmentofIndustrialPolicyandPromotion.2016.EstablishmentofNationalIndustrialCorridorDevelopmentandImplementationTrust.F.No.11/1/2016I-C(Order).22December.

S.Mitraetal.2016. Scaling New Heights: Vizag–Chennai Industrial Corridor, India’s First Coastal Corridor.Manila:AsianDevelopmentBank.

R.Vickerman.2002.RestructuringofTransportationNetworks.InG.AtalikandM.M.Fischer,eds.Regional Development Reconsidered.Berlin:Springer.

TheviewsexpressedinthispublicationarethoseoftheauthorsanddonotnecessarilyreflecttheviewsandpoliciesofADBoritsBoardofGovernorsorthegovernmentstheyrepresent.ADBencouragesprintingorcopyinginformationexclusivelyforpersonalandnoncommercialusewithproperacknowledgmentofADB.Usersarerestrictedfromreselling,redistributing,orcreatingderivativeworksforcommercialpurposeswithouttheexpress,writtenconsentofADB.

AsianDevelopmentBank6ADBAvenue,MandaluyongCity1550MetroManila,PhilippinesTel+6326324444Fax+6326362444

www.adb.org/publications/series/adb-briefs

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)©2018ADB.TheCClicensedoesnotapplytonon-ADBcopyrightmaterialsinthispublication.https://www.adb.org/terms-use#openaccesshttp://www.adb.org/publications/corrigenda pubsmarketing@adb.org

About the Asian Development BankADBiscommittedtoachievingaprosperous,inclusive,resilient,andsustainableAsiaandthePacific,whilesustainingitseffortstoeradicateextremepoverty.Establishedin1966,itisownedby67members—48fromtheregion.Itsmaininstrumentsforhelpingitsdevelopingmembercountriesarepolicydialogue,loans,equityinvestments,guarantees,grants,andtechnicalassistance.

ADBBriefsarebasedonpapersornotespreparedbyADBstaffandtheirresourcepersons.Theseriesisdesignedtoprovideconcise,nontechnicalaccountsofpolicyissuesoftopicalinterest,withaviewtofacilitatinginformeddebate.TheDepartmentofCommunicationsadministersthe series.