This report discusses the issue of institutional capacity building (ICB) within the road sector in developing countries and countries with transitional economies. It raises the question of what ICB is and how it should be understood. It further presents findings from a review of selected road sector projects in developing countries aiming at institutional reforms and capacity building.
The report suggests that ICB should be appropriately defined to include both tangible factors (technical competence and organizational framework) and also an understanding of intangible factors (social arrangements). From the review of projects, it appears that ICB has not worked well because it has not been appropriately tabled on the agenda to include both tangible and intangible factors. Intangible factors are often ignored or underestimated. The report proposes that ICB should be seen as an instrument for creating good governance and integrity as it pursues a complementary objective – being the development of effective and efficient institutional arrangements so as to provide a reliable and safe road transport system.