Session I: Road Transport, Driving Peace and Prosperity – An economic and Social Imperative

1. Session I: Road Transport, DrivingPeace and Prosperity – An economic and Social Imperative 31st IRU World Congress, Istanbul, 15-16 May 2008 “Harnessing the Drive of Globalization” Deunden Nikomborirak Thailand Development Research Institute

2. Peace, Prosperity and Transport • Globalization = Social and Economic Interdependence of States Transport of passengers Transport of Goods PEACE PROSPERITY

3. Policy Challenges • Which roads to build? • How to finance the roads ? • Who should operate road transport ? • How to ensure efficiency and competitiveness of operators ? • How to ensure seamless cross-border delivery ? • How to address environmental concerns ?

4. 1. Which roads to be built ? • In a globalized world, roads should be built to serve “regional” rather than “domestic” transport of goods and passengers. • Ministries of Transport needs to “think global” and look “beyond” national borders. • Regional planners (such as UNECE and UNESCAP) and financiers (such as the ADB) will play key roles in the development of regional road transport infrastructure.

5. 2. How to finance the roads ? • The rising importance of bilateral and regional creditors/donors due to globalization. • More developed neighbours need to adopt an “offensive” transport development assistance policy to enhance own economic interests. • Businesses will “drive” overseas financial assistance policy directions.

6. 3. Who should operate road transport ? • State vs private • Local entrepreneurs versus foreign operators. • The role of state operators should be strictly confined to well-defined “social services delivery”. • Global players should not and cannot be kept at bay forever.Liberalisation policy should be gradual but definite to allow and ensure adjustment of local providers.

7. 4. How to ensure efficiency and competitiveness ? • How to promote greater efficiency among local service providers ? • How might smalllocal operators co-exist in the market with large global players ? • Gradual exposure to competitive pressures – i.e., domestic then foreign competition. • Promotion of ICT investment by using fiscal incentives and government-sponsored training courses. • Effective implementation of competition law to ensure fair competition across large and small and integrated and non-integrated players.

8. 5. How to ensure seamless delivery of services cross-border ? • Unilateral action: Adoption of “international regulatory standards” • CMR Convention • Convention on Road Traffic 1968 • TIR Convention • Multi-modal transport • Etc. • Bilateral/regional action: Agreements to facilitate interstate and transit transportation of goods and passengers

9. 6. How to address environmental concern ? • How to maintain high environmental standards without increasing costs? • Fiscal incentives can foster both higher environmental standard, vibrant road transport industry and even attract investment– i.e. petrol tax, investment incentives for fuel-efficient and environmental friendly cars, etc. • petrol tax revenues may be earmarked for the construction of mass transportation that will free up road space and lessen emission or to subsidize public transportation (MRT).

10. 7. Conclusion • Globalization implies mutual dependence across individual states in developing a prosperous and peaceful global community. • Both the government and the private sector face the challenge of how to harness global resources and garner greater coordination and cooperation across borders in building an efficient road transport sector.

11. Thank You Teşekkür ederim