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8/10/2019 Six Strategic Decisions for Transportation in Mega Cities -- Gakenheimer(1994)
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Urban Economics & Finance
Six strategic decisions for
transportation in mega-cities
(by Gakenheimer, 1994)
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8/10/2019 Six Strategic Decisions for Transportation in Mega Cities -- Gakenheimer(1994)
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A stable set of basic objectives concerning
urban economy, living and environment
Productivity
Poverty Alleviation
Environment
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Policy framework and strategy redefining the
urban challenge in LDCsFirst: should move towards a broader view of urbanissues, a view that moves beyond housing and residentialinfrastructure, and that emphasizes the urban
productivity of the urban economy and the need toalleviate the constraints on productivities
Second: the productivity of the urban poor should beenhanced by increasing demand for labor and improving
their access to infrastructure and social servicesThird:More attention should be devoted to reversing thedeterioration of the urban environment
(Source: World Bank (1991). Urban Policy and Economic Development: An agenda for the1990s, Washington D.C.: World Bank, P.3)
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General strategic objectives
Guide physical development
Enhance productive economic other infrastructures,
poverty alleviation, relationships
Program and price infrastructure Structure metropolitan governance
Each of these general strategic objectives includes
transportation facilities and services as one of its keyelements
Complementation by supporting decisions for housing
and land development4
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Six strategic issues in urban transportation
How to price and finance transportation
How to choose modes
How to improve the mobility of the people
How to control automobile usage
How to protect the environmentHow to create sustainable institutions
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On environment and transportation policy
Two principal impacts of transportation on the
environment are:
Air pollution
Land consumption
Technology side
Limiting automobile use Enforcement
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Pricing & financing urban transportation
In most cities public transportation is under
priced
Option 1: Raise P towards MC of service
In general, city should not operate a service that
it cannot self-finance
Everyone benefits from improved access; say,through a new transit
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Pricing & financing urban transportation
Subsidy: In principle Yes, but How to levy charges on secondary beneficiaries
Tax on employers to finance on urban transportation, baseon the size of the company payroll (as done in France)
Land valorization Benefit levies simplified forms of betterment charges in the
form of special assessment districts
Privatization: An alternative Rationale: Public agency transit services tend to become
inefficient, decline in quality, absorb increasing governmentsubsidies
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Informal sector transportation Informal
sector transportationDifficult to regulate
Politically aggressive
Public authority can bargain for enforcement of
regulations (service-rendering regulations?)
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Central issue on the mobility of the poor
Premise: Our blunt tool of analysis that uses
simply aggregate time saved in travel as a basis
for justifying transportation investment is of verylimited value
The effort here meshes our concern for
productivity with the effort to alleviate poverty
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Central issue on the mobility of the poor
(contd)Two key questions are:
Where does endowment of transportation service
improve employment possibilities, improveeducation, or lower consumer prices?
What current travel behaviors of the poor show theywould benefit from better transit?
The potential pay-off from incorporating the poorin the public transportation system is very high insocial, political and economic terms for everyone
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The strategic pattern for urban policy and
planningBasic objectivesProductivity Poverty alleviation Environment
General strategic objectives
Guide physical Enhance Programme and Structuredevelopment productive price metropolitan
economic infrastructure governance
relationship
Transportation strategiesHow to price and finance transportation How to control automobile usage
How to choose modes How to protect the environment
How to improve the mobility of the poor How to create sustainable institutions
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