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RT&H and R&PW As Percentage Of DECLEARATION I hereby declare that the thesis entitled “Role of Government in Road Transport Development with Special Reference to India and Kenya from 2000 to 2010”, completed and written by me has not previously been formed as the basis for the award of any Degree or other similar title upon me of this or any other Vidyapeeth or examining body. Place: . Date: . Research Student ii CERTIFICATE This is to certify that the thesis entitled, “Role of Government in Road Transport Development with Special Reference to India and Kenya from 2000 to 2010”, which is being submitted herewith for the award of the Degree of Vidyavachaspati (Ph.D) in the Department of Economics of Tilak Maharashtra Vidyapeeth, Pune is the result of original research work completed by Shri/Smt. Maake Albert Onguti under my supervision and guidance. To the best of my knowledge and belief the work incorporated in this thesis has not formed the basis for the award of any Degree or similar title of this or any other University or examining body upon him/her. Place: . Date: . Research Guide iii ACKNOWLEDGEMENT First and foremost, I would like to thank my God the living Father in Heaven for His graciousness and mercies upon my life during my studies and as I undertook this research work. I would like to convey my deepest appreciation to Dr. Madhura Joshi for her tireless and determined efforts to supervise the research exercise as a mentor and a research Guide. I am also deeply indebted to her as the Department Head for Economics, SNDT Pune being my champion at all circumstances. I owe much to Dr. Madhavi S. Kulkani of SNDT Arts and Commerce College, Pune and Dr. Sandeep L. Kachchhap for their selfless advisory assistance in terms of time and expertise in Statistical Analysis requirements for this research exercise. Your input and contribution to this work makes a lot of difference. Thank you. I appreciate the assistance of the library staff of the Kenya National Bureau of Statistics, University of Nairobi, National Libraries in Nairobi County and Nakuru County in Kenya. Further mention is directed to the library staff of Tilak Maharashtra Vidyapeeth, Gokhale Institute of Politics and Economics, Economics Department Library of University of Pune, for their profound support and permission to utilize their library services for the period during the research exercise. My love and gratitude go to my beloved parents Mr. and Mrs. Maake, my brother and sister Mr. and Mrs. Benard Magara, and my Uncle Mang’are Seth Ong’uti and family, Uncle Engr. Moguche John and family for their immense financial support, encouragements, and prayers towards this research. I will not overlook the immense assistance from my friend Miss Ifunanya Isama for her sincere support with respect to this research work. Lastly I adore all my friends; The Chariots Acappella Singers of Spicer Adventist University, Dr. Noble Pilli, Vice Chancellor of Spicer Adventist University, my father and landlord with his loving family Mr. K. Kunjukutty, Musa Mziba, Samingthong Thong Kasem, Dr. Oirere M. Aaron, Dr. Nyaga Nathan Gitonga, and all my other friends who stood by me in achieving this academic milestone. iv ABSTRACT The affluence of the economic development of a country, especially developing nations like India and Kenya would largely be influenced by the development of Road Transport sector. The Road transport sector is considered as the artery of economic development process, and therefore it is of benefit to understand the role of government in this respect at institutional and policy level. Consequently, this study purposed to investigate the role of government in road transport development considering a comparative perspective of India and Kenya as regards to public finance in road sector. The study was based on the secondary data and central to this comparative investigation was the budget allocations for road transport development. Descriptive and statistical analysis gave results that indicated among other things, that the policy makers for road sector in India and Kenya practice defective fundamental budgeting principles that do not promote the effectiveness and efficiency of public expenditure. For instance, incremental and cumulative budgeting; results also showed poor implementation of performance–based budgeting; negligence in considering the impact of variables such as population density and road density index in the decision making process for resource allocation for road transport development. In addition to that, the results also indicated a similarity in trends for budget allocations in Indian and Kenya for road sector in terms of the influence of the bureaucracy and politicians on road sector policy. The study is of benefit to policy makers and bureaucrats who are instrumental in designing of policy that impact the growth and development of road transport sector in India and Kenya. v TABLE OF CONTENTS DECLARATION ................................................................................................ ii CERTIFICATE ...............................................................................................iii ACKNOWLEDGEMENT ........................................................................................ iv ABSTRACT ............................................................................................... v TABLE OF CONTENTS .......................................................................................... vi LIST OF TABLES .............................................................................................. xi LIST OF CHARTS ............................................................................................xiii LIST OF GRAPHS ............................................................................................xiii LIST OF FIGURES ............................................................................................xiii LIST OF ABBREVIATIONS ................................................................................. xiv Chapter 1. ROLE OF GOVERNMENT IN ROAD TRANSPORT DEVELOPMENT WITH RESPECT TO INDIA AND KENYA FROM 2000 TO 2010 Introduction ................................................................................................. 1 Role of Road Transport in Economic Development ..................................... 2 Role of Government in Road Transport in Europe and USA ........................ 6 Economic and Social Problems ....................................................... 6 Technology and R&D ..................................................................... 7 Road Safety ..................................................................................... 8 Conclusion ....................................................................................... 9 Foreign Direct Investment (FDI) in Road Transport Development .............. 10 Budget Allocations for Road Transport Development: Problems and Challenges ....................................................................................... 16 Land Acquisition ........................................................................................... 18 Statement of the Problem .............................................................................. 19 Research Gap ................................................................................................. 21 Objectives of the Study.................................................................................. 22 Limitations of the Study ................................................................................ 22 Significance of Study..................................................................................... 23 Hypothesis ................................................................................................. 24 Methodology ................................................................................................. 24 Research Area ................................................................................. 25 Sources for Data Collection ............................................................ 25 Data Analysis and Interpretation ..................................................... 25 Scope of the Study .......................................................................... 26 Chapter Scheme ............................................................................................. 26 References ................................................................................................. 28 2. REVIEW OF RELATED LITERATURE ........................................................... 31 Transport Problem ......................................................................................... 31 Transport Economics ..................................................................................... 36 vi Impact of Transport Development ................................................................. 40 Externalities of Road Transport ..................................................................... 50 Role of Government in Transport Development ........................................... 57 Resource Allocation for Road Transport Development ................................ 63 Transport Policy Development ...................................................................... 72 References ................................................................................................. 79 3. COUNTRY PROFILE: INDIA ............................................................................ 85 History……..………………………………….. ..........................................
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