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Case Studies / Developing Countries / Guide / The influence of industrial structure
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The influence of industrial structure
This table examines the relationship between the industrial structure in the different cities and the types of problems arising.

Characteristics to Note
A number of general observations can be made on these tabulations.

  • In most cases where fares are strictly controlled there is some combination of poor service quality and poor vehicle quality.
  • In most cases where there is a states owned enterprise, the budget burden of that enterprise is considered to be a major problem issue
  • The existence of a state owned enterprise is no guarantee that socially desired services will be maintained
  • Self regulation by small formal or informal sector operators usually results in “tour-de-role” despatching which causes low vehicle utilization and long access walking time for passengers
  • Excessively small formal private operations usually lead to on-the-road competition and passenger safety concerns
  • Moves to service contracting and competitively tendered franchising is seen as a solution of several different types of problem (low efficiency, low vehicle utilization, bad operator behavior, loss of social services)
  • The introduction of segregated busway systems is seen not only as a solution to congestion problems but also as a catalyst for several other reforms (vehicle standards, operator behavior controls, competitively tendered franchising, structural concentration)
   

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