India and China plan to pour billions of dollars into trunk road capacity and rural accessibility improvement projects over the next 15 years. However, there is concern about possible shortfalls in funding, largely because of competition from other sectors and numerous weaknesses in regulatory and control mechanisms in the road sector. Even if sufficient funds are available, inefficiencies in transport services and asset management are likely to return lower marginal rates on future investment. On the basis of a review of literature from the past 5 years, a case is outlined for further policy and strategy changes to maximize the benefits of investment in road assets. It is suggested that donors and governments should broaden support for the road sector to encompass transport services and traffic operations, with the aim of increasing productivity and decreasing negative externalities such as traffic accidents and vehicle emissions.
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