THE PUBLIC-FINANCE OF INFRASTRUCTURE - ISSUES AND OPTIONS

This paper analyzes the role of government as the provider of infrastr ucture and looks at its provision in developing countries. Using econo mic principles it provides a framework for financing infrastructure se rvices where consumption-related user charges can be effectively levie d. In light of the suggested framework it examines the experience of d eveloping countries in financing the publicly provided infrastructure services in transport (road), water, telecommunications, and power sec tors. The paper draws lessons on where the ''optimal'' financing rules need to be modified in light of this experience.