Better Economic Regulation
The Role of the Regulator
Efficient provision of transport infrastructure is critical to economic growth. The
long asset lives of much transport infrastructure indicates governance through regulation,
rather than through contract or public ownership. This can ensure predictability in
long-term relationships whilst preserving some flexibility to deal with changes in
The transparency created by a fully independent regulator is invaluable for ensuring
sufficient investment is forthcoming, while maintaining reasonable conditions for
user access. Discussion at the Roundtable focussed on how to achieve effective independent
regulation and how to reconcile independence with the legitimate control of policy
by the executive part of government.
Independent regulation is not seen as a universal default governance arrangement.
Much of the discussion focused on when to regulate and when to rely on competition,
even if imperfect, to drive efficiency. The discussions underscored that there are
opportunities to improve performance significantly in the aviation, rail and road
sectors, by learning from successful experience in improving governance structures
in a range of countries.
Published on May 17, 2011Also available in: French
In series:ITF Round Tablesview more titles