Deunden NIKOMBORIRAK
Thailand Development Research Institute, Thailand

Road Transport, Driving Peace and Prosperity –
An Economic and Social Imperative

“Harnessing the Drive of Globalization”

As globalization gradually melts away national borders, it has delivered a global economy and society where states are intrinsically mutually dependent. It is thus most useful to exploit this deepening inter-state dependence to solicit greater cooperation and coordination in building a more efficient transportation system that could help promote peace and prosperity. The more affordable it is for people from different states, cultures and religions to get to know one another, and for businesses form different states to trade with each other, the greater the chance for peace and prosperity.

There are 6 key policy challenges facing a transport policy maker in the age of globalization. The first one is which roads should be built? Here, transport policy makers need to focus on how to secure access to or help improve neighboring countries’ transport infrastructure.

The second policy challenge concerns the source of financing. Here, again, increased importance of inter-state trade implies that your neighbor’s economy is likely to be more or less dependent on the state of your transport infrastructure and rules, and vice versa. Multi-party financial packages to assist in the construction of road infrastructure in less developed nations should not be too difficult to secure.

Third, policymakers need to decide on the role of the state in the transport sector. Are there any rationales for the state to be engaged in transport services? At the same time, policy makers will have to deal with the tough decision of opening up the market to foreign competitors. Liberalization can be delayed but not avoided. This leads to the fourth policy challenge of how to prepare local service providers for eventual global competition.

The fifth policy challenge is how to ensure a seamless delivery of services across borders. Here, policy makers need to deal with an array of rules and regulations governing cross border trade and transport. It is imperative that domestic rules and regulations that are inconsistent with global standards be reviewed.

The final policy challenge concerns environmental issues. The policy challenge is how to maintain high environmental standards without increasing costs? This policy is particularly crucial for developing states that need to nurture economic growth. Here, there are policies that can help reduce emission and reduce the cost of transport at the same time. For example, fuel tax revenues can be earmarked to build mass transit system. As more vehicles can be removed from the road, congestion and emission can be both reduced.

To conclude, the prospect of developing an efficient regional road transport network and services is certainly bright, if we know how to make use of globalization.

Watch the powerpoint presentation

[ top ]