Developing countries can save billions by privatizing public transport
The paper looks at how public monopolies in road maintenance, highway construction, rail transport, and urban bus transport often don't perform well because they focus more on their own interests than on consumers' needs. As a result, they require increasing subsidies to keep running. The study shows that private sector involvement can better meet social and economic goals while being financially sustainable. It suggests that by structuring private supply arrangements and designing effective incentives, it's possible to achieve both efficient service and desired societal outcomes when transitioning public transport infrastructure to the private sector.