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How to repair city boulevards
submited on 07.04.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
submited on 07.04.2008 in category Political stability | Fiscal affairs | Monetary policy | Regulated markets | Privatisation | Macroeconomic developments
The quality of streets and boulevards is always among the major problems in the biggest cities. Municipalities have to satisfy all voters with the scarce public resources. How they can solve with the limited resources the difficult puzzle of consumer preferences?
A good example comes from the private sector. It also only has limited resources and entrepreneurs have to solve the puzzle of millions of consumer preferences. Nevertheless, private industries cope with that considerably better than the municipality, when talking about services such as safety, construction, cleaning, etc. Stimuli have their deciding role in effective allocation of resources. When resources are public, stimuli do not exist.
And despite the current status quo, no one so far has doubted the mechanism of financing and maintaining city streets and boulevards. This is to a certain extent surprising in time when many “traditionally public” services are successfully privatized with decreasing costs for consumers and increasing the quality of the service. New technologies allowed for controlling the access to the “public” service.
The concession of boulevards is not utopia. The attempt would not be expensive; the results could be considerably favorable both to the municipal budget and the citizens. The boulevards are main arteries, which connect a certain borough with the city center. In most big cities there are alternative routes for reaching the city center. The concession would not expose to risk the access of citizens to urban infrastructure. The revenues of maintaining a boulevard could be different as source. The expenses could be limited to the so called current maintenance.
Is there business in maintaining the boulevard will be decided by the private sector? In order to be done, the private sector needs a chance. Municipalities could try with pilot concessions of relatively lighter-traffic, due to bad conditions for example, boulevards. They could try with main arteries as well, allowing the concessionary to collect fees for passing through in the peak hours.
A good example comes from the private sector. It also only has limited resources and entrepreneurs have to solve the puzzle of millions of consumer preferences. Nevertheless, private industries cope with that considerably better than the municipality, when talking about services such as safety, construction, cleaning, etc. Stimuli have their deciding role in effective allocation of resources. When resources are public, stimuli do not exist.
And despite the current status quo, no one so far has doubted the mechanism of financing and maintaining city streets and boulevards. This is to a certain extent surprising in time when many “traditionally public” services are successfully privatized with decreasing costs for consumers and increasing the quality of the service. New technologies allowed for controlling the access to the “public” service.
The concession of boulevards is not utopia. The attempt would not be expensive; the results could be considerably favorable both to the municipal budget and the citizens. The boulevards are main arteries, which connect a certain borough with the city center. In most big cities there are alternative routes for reaching the city center. The concession would not expose to risk the access of citizens to urban infrastructure. The revenues of maintaining a boulevard could be different as source. The expenses could be limited to the so called current maintenance.
Is there business in maintaining the boulevard will be decided by the private sector? In order to be done, the private sector needs a chance. Municipalities could try with pilot concessions of relatively lighter-traffic, due to bad conditions for example, boulevards. They could try with main arteries as well, allowing the concessionary to collect fees for passing through in the peak hours.
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