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A Responsible Approach
to Transport Investments


José Viegas
Secretary General

VTI Transportforum
Linköping, 9 January 2013
2




    International Transport Forum at the OECD



► An inter-governmental organisation with 54 member
  countries, focussing on transport policy



► A think tank for global transport policy issues



► An annual summit of Ministers
3




               What an organization like ITF provides

• Comparable and reliable statistics

• Management of the Multilateral Road Freight Quota

• Evidence based knowledge

• Cooperative research      (Round Tables, Research Workgroups)


• Annual   Summit, with Ministerial meetings, presentations,      panel
 discussions


• And hopefully soon, Policy studies by request of members
 (aligned with the new Strategic Guidelines, “Value for Members”)
4




       Transport Policy is a difficult challenge (I)


• Transport systems have a direct impact on the life of every
  person and every organization


• Whatever policy intervention some people will feel they are
  losing


• And quite some people will adapt their behaviour, to make
  the most of the new circumstances
5




      Transport Policy is a difficult challenge (II)

• In whatever transport policy decision there are always
 questions of
   – Effectiveness
   – Efficiency
   – Sustainability
   – Equity / Fairness




• Quite often, not all these questions are properly addressed,
  and especially rebound effects are ignored
6



                               The long-term impacts
                      and the short-term deliverables


• In political decisions, balance between long-term
  impacts and visible results within mandate
  (performance assessment)



• Projects which have a long lead time to delivery of
  visible results get lower priority
   – Configure projects so that some positive deliverables “arrive on
    time”
7




                                 Priotities and perceptions


• Preferences and priorities of people strongly depend on
   – How well-off you feel now
   – What other relevant people already have
   – Self-assessment of main position in society (beneficiary vs taxpayer)




• Different social groups have different access requirements
   – Aggregate measures of welfare not enough, distributional effects
     must be considered
8



               The instruments of Transport Policy
                        design and implementation
• Four different types of instruments are available
   – Supply-side, Technologies (the engineer toolbox)
   – Laws and regulation (the lawyer toolbox),
   – Pricing, Taxes and subsidies (the economist toolbox)
   – Information and narratives (the tool box of comms
     specialists, psychologists and sociologists)


• Utilization of these instruments will depend
   – on the nature of the problems
   – on the perspective (cultural bias) of the decision makers and
     their advisors (which group dominates the advisors circle)
9




              A (stereotyped) historical perspective
• Different decades have had different dominant “advisor
  groups”, with significant degradation of results
   – When the engineers dominated, little concern for efficiency or equity

   – When the economists or lawyers dominated, little concern for efectiveness
     (poor maintenance, no upgrade of physical systems) or equity

   – Sociologists have not (yet) come to a position of dominance, but increasing
     presence of psychologists to help understand behavioral adaptations




• Since the 80’s there has also been a strong presence of
  environmentalists
   – but they tend to act more on defense of sustainability, with no strong
     engagement in the other objectives
10




                                    Multi-instrumentality

• No matter what policy intervention, people will adapt
  their behaviour
   – High concentration of only one type of instrument will also
     reduce the range of policy objectives actively considered
     and concentrate the group of losers (negatively affected),
     who will protest, resist, possibly cheat or boycott




• A coordinated mix of the various types of instruments
  (multy-instrumentality) reduces risks of failure and
 provides a fairer distribution of gains and of losses
   – An easier “social digestion”
11



                                 Who benefits, who pays

• A critical issue for public acceptance

• Quite often, costs seem certain and short-term, and
  benefits uncertain / fuzzy and mid- to long term

• On the cost side, this often translates into split of
  financial contributions from direct and indirect beneficiaries, and
 taxpayers at various levels

• Also with implications on the funding question
    – Who puts up the money upfront, under what risks and with what
      expected payback
12




              Complexity and Knowledge sharing

• Tackling these complex issues requires holistic
  approaches combined with technical
  expertise in the various areas involved




• No two situations are the same, but careful
  transfer of knowledge based on experiences
  is possible
   – No country is more advanced in all fronts, we can all learn with
     one another
Funding Transport
22-24 May 2013,
Leipzig, Germany
14




                2013 SUMMIT TOPICS
 Innovative Transport Funding
 Making Better Choices: Assessing Transport Investments
 Investing for Growth
 Taking Stock of Public-Private Partnerships (PPPs)
 Aviation’s quest for financial sustainability
 Bringing Communities and Transport Users on Board
 Attracting Private Finance and Ensuring Predictable Funding
 Defining Spending Priorities: What’s First?
 Linking Networks: Funding Cross-Border Transport
 Funding Long-term Transport Infrastructure
 Urban and Regional Mobility: Who Pays?
Thank you
José Viegas
T +33 (0)1 45 24 97 10
jose.viegas@oecd.org

Postal address
2 rue Andre Pascal
75775 Paris Cedex 16

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Opening session José Viegas

  • 1. A Responsible Approach to Transport Investments José Viegas Secretary General VTI Transportforum Linköping, 9 January 2013
  • 2. 2 International Transport Forum at the OECD ► An inter-governmental organisation with 54 member countries, focussing on transport policy ► A think tank for global transport policy issues ► An annual summit of Ministers
  • 3. 3 What an organization like ITF provides • Comparable and reliable statistics • Management of the Multilateral Road Freight Quota • Evidence based knowledge • Cooperative research (Round Tables, Research Workgroups) • Annual Summit, with Ministerial meetings, presentations, panel discussions • And hopefully soon, Policy studies by request of members (aligned with the new Strategic Guidelines, “Value for Members”)
  • 4. 4 Transport Policy is a difficult challenge (I) • Transport systems have a direct impact on the life of every person and every organization • Whatever policy intervention some people will feel they are losing • And quite some people will adapt their behaviour, to make the most of the new circumstances
  • 5. 5 Transport Policy is a difficult challenge (II) • In whatever transport policy decision there are always questions of – Effectiveness – Efficiency – Sustainability – Equity / Fairness • Quite often, not all these questions are properly addressed, and especially rebound effects are ignored
  • 6. 6 The long-term impacts and the short-term deliverables • In political decisions, balance between long-term impacts and visible results within mandate (performance assessment) • Projects which have a long lead time to delivery of visible results get lower priority – Configure projects so that some positive deliverables “arrive on time”
  • 7. 7 Priotities and perceptions • Preferences and priorities of people strongly depend on – How well-off you feel now – What other relevant people already have – Self-assessment of main position in society (beneficiary vs taxpayer) • Different social groups have different access requirements – Aggregate measures of welfare not enough, distributional effects must be considered
  • 8. 8 The instruments of Transport Policy design and implementation • Four different types of instruments are available – Supply-side, Technologies (the engineer toolbox) – Laws and regulation (the lawyer toolbox), – Pricing, Taxes and subsidies (the economist toolbox) – Information and narratives (the tool box of comms specialists, psychologists and sociologists) • Utilization of these instruments will depend – on the nature of the problems – on the perspective (cultural bias) of the decision makers and their advisors (which group dominates the advisors circle)
  • 9. 9 A (stereotyped) historical perspective • Different decades have had different dominant “advisor groups”, with significant degradation of results – When the engineers dominated, little concern for efficiency or equity – When the economists or lawyers dominated, little concern for efectiveness (poor maintenance, no upgrade of physical systems) or equity – Sociologists have not (yet) come to a position of dominance, but increasing presence of psychologists to help understand behavioral adaptations • Since the 80’s there has also been a strong presence of environmentalists – but they tend to act more on defense of sustainability, with no strong engagement in the other objectives
  • 10. 10 Multi-instrumentality • No matter what policy intervention, people will adapt their behaviour – High concentration of only one type of instrument will also reduce the range of policy objectives actively considered and concentrate the group of losers (negatively affected), who will protest, resist, possibly cheat or boycott • A coordinated mix of the various types of instruments (multy-instrumentality) reduces risks of failure and provides a fairer distribution of gains and of losses – An easier “social digestion”
  • 11. 11 Who benefits, who pays • A critical issue for public acceptance • Quite often, costs seem certain and short-term, and benefits uncertain / fuzzy and mid- to long term • On the cost side, this often translates into split of financial contributions from direct and indirect beneficiaries, and taxpayers at various levels • Also with implications on the funding question – Who puts up the money upfront, under what risks and with what expected payback
  • 12. 12 Complexity and Knowledge sharing • Tackling these complex issues requires holistic approaches combined with technical expertise in the various areas involved • No two situations are the same, but careful transfer of knowledge based on experiences is possible – No country is more advanced in all fronts, we can all learn with one another
  • 13. Funding Transport 22-24 May 2013, Leipzig, Germany
  • 14. 14 2013 SUMMIT TOPICS  Innovative Transport Funding  Making Better Choices: Assessing Transport Investments  Investing for Growth  Taking Stock of Public-Private Partnerships (PPPs)  Aviation’s quest for financial sustainability  Bringing Communities and Transport Users on Board  Attracting Private Finance and Ensuring Predictable Funding  Defining Spending Priorities: What’s First?  Linking Networks: Funding Cross-Border Transport  Funding Long-term Transport Infrastructure  Urban and Regional Mobility: Who Pays?
  • 15. Thank you José Viegas T +33 (0)1 45 24 97 10 jose.viegas@oecd.org Postal address 2 rue Andre Pascal 75775 Paris Cedex 16