From Sustainable to Inclusive Transport

Assessing Poverty, Social and Inclusive Growth Impact of Transport Projects

For inquiries: Dr. Armin Bauer, Principal Economist, Regional and Sustainable Development Department, Asian Development Bank, abauer@adb.org, Tel: 0063-2-6325550

Why analyzing the poverty and inclusive growth impact is important

The transport of the poor What we mostly do

5 key messages
1. 2. 3. 4. 5.

The poor s transport means are different and neglected Environmental and climate change considerations can push aside transport for the poor EIRR analysis is not helpful; we need separate poverty (and social impact) impact analysis There is a major change since 2006 in considering poverty impact. This was not to the better We need to report better at corporate level on ADB s contribution to Inclusive Growth Operationalizing IG recommendation can help Examples on how PIA can change project design
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What are the social dimensions of transport projects

Impact channels

Accessibility Financial affordability Inclusive design (who benefits really); gender dimensions Safety and environmental health impact Costs and opportunity costs, macro considerations Maintenance and use of labor

misperceptions

Overemphasis on resettlement Employment

Road building/maintenance creates jobs: depends on application of technology Job impact of transport means can employ a lot of people (40,000 jeepney drivers and 150,000 tricyle drivers in Manila, street vendors)

Access is not necessarily for everybody Measure accessibility of people, not vehicles 4

The term sustainable transport deviates

Sustainability

social environmental financial

The need to focus on INCLUSIVE transport

Inclusive transport focuses on

the impact on people (especially the low income) Systemic contribution to reduce poverty and make growth more inclusive

all transport types have impact on people; also on poor: we need to analyze; There is a big change since 2006 in our interest on poverty impact and the application of tools in transport (and other) projects
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EIRR and poverty analysis: two different things

EIRR is not sufficient:

EIRR analyze only primary impact on transport users; however social benefits go beyond traditional transport benefits It is not about calculating savings in transport costs: secondary education Not quantifiable, cannot be monetized not included in EIRR EIRR ignores distribution analyzes (reach: how many and whom) EIRR does not make analyzes of depth of impact Is not used as a tool to inform project design

The proposed Sustainability Rating (STAR)

I like the proposal to use rating as a tool, but Is it specific enough and will ADB use it as a decision making tool? 7

Should all projects aim at every outcome? composite index Will it replace EIRR?

Beyond the project: Reporting on what ADB is doing at corporate level

Operationalizing Inclusive Growth in transport projects

Stein Hansen (June 2010): Operationalizing Inclusive Growth in ADB s Transport and Energy projects. 8

Poverty analysis can change project design

Make the analysis: is access really equal for all? More walking and bicycle lanes in urban Public transport friendly infrastructure helps the poor, rather than transport of individual cars Consider impact on people s health (climate change is not a vote catching program for mayors, pollution is)

Inclusive transport - urban

What type of people do get how to work, school, entertainment Transport modes:
the poor walk and cycle, use polluting tricycle and jeepneys (inclusive vs. sustainable/ cc) MRT and BRT is more for the middle class, unless

Spatial Dimensions: where; alignment design (bridges for the cars and not for the people) Transport modes determine poor s health:
The poor breath a different air Congestion is the issue, not accidents city planning, not only traffic planning environmental and poverty goals sometimes conflicts

It is not about resettlement Examples:

Bogota/COL: non motorized transport PHI: Marikina bike lane, e-trike 10

Inclusive transport - rural

Rural roads need to connect to markets that provide jobs and income Link the analysis to economic potential areas, and do not build roads based on missing links Institutional issues: Often in the context of rural development programs Road maintenance, labor based technologies (ILO) Examples:

Philippines Agrarian Reform; pro-poor growth potential areas; 55% roads and storage (10%), 30% irrigation, 10% drinking water, 5% other communal infrastructure CAM road maintenance Chittagong: smaller roads and no roads to mountain preserve indigenous communities from land grabbing Zambia rural road (KfW): women want the traders to come to the village rather 11 than their husbands using bicycle to go to the market (HIV-AIDS, money)

Inclusive transport intercity transport

Catch the poverty/inclusive impact at source and destination area

Shangxi: target economic potential area for link roads; ADB constructs key link roads PRC is doing the rest Guangxi: connect new areas through facilities (terminal; loading station) PRC Guangxi: Traffic count on an expressway apples from VIE to Henan extra road and loading station; additional inter-governmental transfer PRC-Laos-Thailand: plastic from PRC vanishes pottery from poor Lao people

Go beyond simple traffic count analysis

Inter-country regional roads can have negative social impact

Don t always follow the government s road development plan

PHIARC: pro-poor growth potential areas 12 BAN-Chittagong: size of the roads and location determines illegal logging

Inclusive transport other modes

Railway:

Long distance (180 km) Mostly for goods Design features: compartments, railway stations, slow and fast trains, Often have strong social impact But are neglected through investments Is not for the poor But one could use income (e.g. Mongolia radar system) Rural airports connect isolated regions (Bhutan) bring 13 medical facilities etc.

Waterways

Air transport

If we have time:

Role of private sector solutions

Private transport solutions are for the rich, public more for the poor Improve the transport means of the poor

Example: clean engines retrofit; a truly inclusive business raising income of poor drivers by 180% within 3 years through fuel savings plus plus plus Health: Key problem of mother mortality in PAK is access to hospitals and referral system does not need road but transport means arrangements plus ICT/radio, Education: school transport for secondary (not primary) education: CCT, voucher, school bus

Transport in other sectors

Need for Public-Private Partnerships ADB s inclusive business initiative 14

Further reading

ADB / Stein HANSEN (June 2010): ADB s Contribution to Inclusive Growth in Transport and Energy projects.
http://www.adb.org/Documents/Papers/ADB-Working-Paper-Series/ADB-WP13-inclusivegrowth-infrastructure.pdf documents/tars/ind/37143-ind-tar.pdf

ADB (2012): Addressing Social and Health Issues in Transport. www2.adb.org/ ADB : Mitigating Gender and Social Risks in Transport projects.
http://www.scribd.com/doc/96269216/Mitigating-gender-and-social-risks-in-Transport-projects

ADB (June 2012) Analyzing Social & Gender Issues and Informing Designs in ADB Transport Projects. www.scribd.com/doc/96262958/Analyzing-Social-GenderIssues-and-Informing-Designs-in-ADB-Transport-Projects

DAC InfraPoor Guidelines: www.oecd.org/dataoecd/16/46/36301078.pdf DAC InfraPoor Background papers: http://www.oecd.org/dac/povertyreduction/

promotingpro-poorgrowthinfrastructure-chapters.htm

World Bank (2001): A Sourcebook for Poverty Reduction. Vol 2 (Sectors), Chapter 22 (Transport) 15