Improving Transnational Transport Corridors
In the OIC Member Countries: Concepts and Cases
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2.7.3. Poverty
Setboonsarng (2005) identifies the problem of poverty in relation to corridors. He provides a
range of policy, regulatory, and institutional measures that could help strengthen the impact of
transport infrastructure on poverty reduction. In developing countries investment in transport
infrastructure is a priority area of attention.
Empirical studies confirm that transport infrastructure does contribute to economic growth.
However, studies reveal that while improved transport infrastructure may be a necessary
condition for poverty reduction, it is by no means a sufficient one. Many transport investments
have failed to provide benefits for the poor, despite aggregate gains in productivity and
income, or even worse, have exacerbated existing inequities as well as given rise to a number
of negative externalities. Setboonsarng concludes that there is considerable room for making
transport infrastructure more pro-poor.
In the case of cross-border transport activities the domestic provision of public goods, in order
to secure social benefits, like poverty reduction measures, may become less effective, due to
international effects. According to (Fujimura, 2004) increasing globalization, liberalization,
and changing patterns in trade, providing regional public goods such as cross-border
infrastructure, has become more critical in bringing benefits that may not materialize through
domestic provision alone.
For small land locked countries that are making a transition to a market economy investing in
cross-border transport infrastructure is most compelling. Their distance from markets is for
these countries a strong motivation to cooperate.
The success of cross-border transport projects depends on the extent to which they are able to
meet three overriding challenges, as identified by (Wescott, 2005):
 countries have to agree on a common framework;
 collecting information on benefits to different countries under various stages of
development;
 coordinating allocation of responsibility regarding financing regional projects among
the countries as well as participating donor agencies, as too often cross-border
transport projects are underfunded.
In view of the described challenges, (Markovich and Lucas, 2011) summarizes what is known
about social impacts and equity of transport, transport disadvantage as it pertains to different
social groups, and the wider interactions between transport poverty and social exclusion; and
come with a research agenda on the distributional impact of transport.
2.7.4. Congestion
Congestion along corridors is a challenge. It leads to economic and social costs. According to
Minnesota Department of Transportation (2012) Integrated Corridor Management (ICM) is
believed to be an effective way to reduce social costs, like congestion, and to enhance safety. In