Private Sector Development

Updated 19 September 2007

Infrastructure shortages, partly reflecting the difficulty of attracting private investment in infrastructure, are becoming serious in ADB DMCs. ADBI has made preliminary assessments of the obstacles to private sector investment. In 2007, a new study is being launched to assess obstacles to private sector investment, particularly FDI, in infrastructure. Country case studies will be undertaken in collaboration with ADB departments. Issues to be addressed include tariff setting, financing arrangements, risk sharing, and corporate governance. Our ongoing research projects on the theme of private sector development are listed below. See the online catalog for ADBI’s private sector development publications.

1. Infrastructure’s Role in Reducing Trade Costs
ADBI is conducting research on the role of infrastructure in reducing trade costs. The study includes country case studies from the PRC, India, Indonesia, the Krygyz Republic and Malaysia which focus on different aspects of developing trade-related infrastructure. Results will be published in a forthcoming publication on Infrastructure and Trade Costs.

Researchers: Douglas Brooks, David Hummels
Project coordinator: Douglas Brooks

a. Trends in Trade and Costs in Asia 1995-2005
This study focuses on trade growth within Asia and the rest of the world, the importance of PRC trade, and how trade is changing. Results will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researchers: Douglas Brooks, David Hummels
Project coordinator: Douglas Brooks

b. Port Infrastructure and Port Costs
This project researches the influence of infrastructure developments on trade costs, particularly at seaports. The research includes port efficiency measurement. Results of the study will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher: Jon Haveman
Project coordinator: Douglas Brooks

c. Trade costs and Trade Flows in Asia
This study focuses on implications of trade costs, the drivers of Asian trade, barriers to trade, the importance of ocean freight for Asia, and the impact of trade costs on trade flows. Results of the study will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher: Prabir De
Project coordinator: Douglas Brooks

d. Infrastructure and Trade Costs in PRC
This case study focuses on the role of infrastructure in facilitating trade and lowering trade costs in the PRC. Results of the study will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researchers: Ma Liqiang, Zhang Jinkiang
Project coordinator: Douglas Brooks

e. Infrastructure and Trade Costs in India
This case study focuses on different aspects of the context for developing trade-related infrastructure in India. The research focuses on barriers affecting trade in South Asia and intra-South Asia trade, trade transport composition and factors influencing trade flows in South Asia. Results of the study will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher : Prabir De
Project coordinator: Douglas Brooks

f. Port Competitiveness: A Case Study of Indonesia
This case study focuses on different aspects of the context for developing trade-related infrastructure in Indonesia. The research includes port logistics costs in Indonesia, causes of port delays, and import and port clearance activities. It will also analyze inter-port competition between Surabaya and Semarang ports. Results of the study will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher: Arianto Patunru
Project coordinator: Douglas Brooks

g. Infrastructure and Trade Costs in Kyrgyz Republic: Challenges of a Small Landlocked Economy
Results will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher: Roman Mogilevsky
Project Coordinator : Douglas Brooks

h. Infrastructure and Trade costs in Malaysia
This study examines the development of transport infrastructure and its contribution towards reducing trade costs through its impact on foreign direct investments and trade in Malaysia. Results will be incorporated in a forthcoming publication on Infrastructure and Trade Costs.

Researcher : Tham Siew Yean
Project coordinator: Douglas Brooks

2. Corporate Social Responsibility in Food Sector and Poverty Reduction
Corporate Social Responsibility (CSR) is becoming common practice in many industries as more and more consumers are choosing to purchase from businesses that are guided by principles that go beyond maximizing profits. In the food sector, CSR initiatives create opportunities for developing countries whose economies depend on agricultural trading. With the growing global market for food that is produced in a socially and environmentally responsible way, promoting CSR in the food sector could potentially benefit smallholder producers in developing countries. ADBI’s research examines the implications of CSR on developing country producers, illustrating through case studies how initiatives such as Organic Certification and Fair Trade Certification can achieve the multiple bottom lines of increased profits, poverty reduction, environmental sustainability, and improved global partnership in development.

Researcher/Project Coordinator: Sununtar Setboonsarng