Strategy Planning for Transportation and Economic Development

An effective transportation system is a prerequisite for extensive economic growth. Since transportation receives such a high proportion of public investment, the developing countries are under pressure to plan transportation improvements so that they will maximize the objectives they are intended to serve with the lowest possible capital and operating cost. A strategy for transportation should consider transportation from a functional point of view, rather than from a facility point of view. The transportation system must be planned on a cost-minimizing principle to conserve capital. Minimization of cost can also be achieved through dealing with transportation from a functional vantage point. It may be possible to reduce the demand for transportation through land use planning, through substitution or through organization. It may also be possible to minimize transportation cost through rationalizing the transportation system. Many of the technical assistance programs are striving to rationalize and mechanize transportation, with considerable success.