The lack of roads and poor road maintenance impede development

A country’s economic development and the efficiency of its traffic system go hand in hand. The poorer a country is, the less it can afford to develop and maintain its traffic infrastructure. But, the lower the capabilities of the road transport sector, the more economic development is obstructed or even prevented. If economic development slows down or is brought to a standstill, this also endangers the progress of poverty reduction, hampers environmental policy and, in some cases, it endangers the political stability of a country.

The causes of poor road infrastructure: the wrong priorities and overuse

The main causes for poor road conditions are inadequate funding from public budgets and inefficient management by the public road administrations. Poor maintenance and excessive utilization of the roads, often by overloaded vehicles, lead to their rapid deterioration. 

Road infrastructure is one of the state’s most important fixed assets.

Roads are generally a state’s greatest investment: in 2002 the German federal government spent roughly 5 percent of its total budget on traffic infrastructure. The Russian federation government invests 45 percent. Yet, in developing countries with centralized budgets (i.e. taking school and hospital construction into consideration) investments in roads usually make up 20 percent - 25 percent of all government spending. The existing (replacement) value of roads in Germany is 22 percent of the Gross National Product (GNP). This percentage is usually twice as high in developing countries. Therefore, maintenance and care of these fixed assets is indispensable.