Limits to competition in urban bus services in developing countries

Abstract

During the past three decades, urban public transport policy has gone through several phases. From public ownership and monopoly provision, the 1980s and 1990s were characterized by a strong liberalization of the sector. This experience showed the limits of liberalization of the sector in terms of safety, prices and accountability. The paper discusses the market failures that justify this claim and the regulatory options available in this emerging new role of government. It illustrates how they are being used in practice in some countries.