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For many in the BOP lack of transportation—or the high cost
of what is available—is a constant obstacle to looking for work,
getting goods to or from markets, or obtaining health care. All
too often public transit systems in developing countries are
run-down or nonexistent, and the costs of owning a private
vehicle prohibitive.That leaves few options: walking, bicycling,
animal-drawn carts, minibuses or other informal services.
Under these circumstances people cannot easily fulfill their economic
potential. And sometimes, especially in rural areas, they put off seeking
medical care or sending children to school because of the high cost or 9FGjg\e[`e^fekiXejgfikXk`fe
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long hours in getting to the hospital or the school. In urban areas gridlock
and pollution levy an additional toll. Deliberate transportation planning
that involves multiple stakeholders is one promising route toward creat-

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ing better urban transportation options (case study 5.1).
Distribution and delivery systems for merchandise operate under
different constraints than public transportation systems, yet these too
contribute to the economic barriers facing the BOP. The focus here is on
personal transportation spending. But more efficient distribution chan-
nels for services, products, and information—from health care to con-
sumer products to better agricultural techniques and equipment—would
also help empower rural communities and reduce the need for people to

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gfcclk`feXi\^\e\iXk`e^Y`^^\iXe[Y`^^\iZfjkjÇ]l\cZfjkj#
cXYfi_flijcfjk`ekiX]]`Z#_\Xck_ZXi\Zfjkj[l\kfi\jg`iXkfip
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travel to obtain such essentials. Indeed, trans-
]fi[XYc\Xe[\em`ifed\ekXccpjljkX`eXYc\i\hl`i\j`emfcm`e^
portation impacts every sector covered in this
dlck`gc\jkXb\_fc[\ij%
report.
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9ljIXg`[KiXej`kjpjk\d#\jkXYc`j_\[YpXglYc`Z$gi`mXk\
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gXike\ij_`gY\kn\\ek_\Z`kp^fm\ied\ek#gi`mXk\Yljfne\ij#
The measured BOP market for transporta-
Xe[k_\<D98IHgif^iXdf]k_\Nfic[I\jfliZ\j@ejk`klk\%
@e)''-#X]k\iXp\Xi`efg\iXk`fe#k_\kiXej`kjpjk\dZXii`\[ tion for Africa (12 countries), Asia (9), Eastern
dfi\k_Xe(''d`cc`fegXjj\e^\ij#_X[i\[lZ\[Zfddlk\ Europe (6), and Latin America and the
k`d\jXcfe^`kjiflk\YpXYflk,'#Xe[gi\m\ek\[Xifle[ Caribbean (9) is $105 billion. This represents
*-#'''kfejf]ZXiYfe[`fo`[\\d`jj`fej`ekfD\o`Zf:`kpËj the annual household transportation spending
X`i%I`[\jZfjkXifle[LJ'%*'\XZ_=cfi\j$8i`Xj)''- % of 2.2 billion people in the 36 low- and middle-
8efk_\igifa\Zk#`ek_\G_`c`gg`e\Z`kpf]M`^Xe#Clqfe#`j income countries for which standardized data
i\kif]`kk`e^dfkfiY`b\jÇk_\dfjkZfddfekiXejgfikXk`fe exist. The total BOP transportation market in
m\_`Zc\`e8j`XÇn`k_c\jjgfcclk`e^Xe[dfi\\]]`Z`\ek]l\c these four regions, comprising 3.9 billion peo-
`ea\Zk`fejpjk\dj%K_\gifa\Zk#n_`Z_gcXejkfi\kif]`kk_fl$ ple, is estimated to be $179 billion (see box 1.5 in
jXe[jÇgfk\ek`Xccpj\m\iXck\ejf]k_fljXe[jÇf]dfkfi$ki`$ chapter 1 for the estimation method).
ZpZc\kXo`j#`jY\`e^le[\ikXb\eYpk_\efegif]`kfi^Xe`qXk`fe The largest measured regional BOP trans-
<em`if]`k#nfib`e^n`k_Z`kpf]]`Z`Xcj#dfkfiY`b\fne\ij#cfZXc portation market is the $49.6 billion Asian
d\Z_Xe`Zj#Xe[dXel]XZkli\ij%:`kpf]]`Z`Xcj_Xm\Zfdd`kk\[ market (1.5 billion people), followed by those
  %  j  E = @ : 2  @ 3 A = C @ 1 3 A  7 < A B 7 B C B 3

kfgXjj`e^c\^`jcXk`fek_Xkn`cci\hl`i\ki`ZpZc\[i`m\ijkfi\$ in Latin America ($38.4 billion and 276 mil-

gcXZ\fii\kif]`kk_\`im\_`Zc\j%<em`if]`k`jkiX`e`e^cfZXcdXel$ lion people), Africa ($11.0 billion and 253 mil-
]XZkli\ijXe[d\Z_Xe`Zj`ek_\gif[lZk`feXe[`ejkXccXk`fef] lion people), and Eastern Europe ($6.0 billion
`kj]l\c`ea\Zk`fejpjk\dj#Yl`c[`e^ZXgXZ`kp]fiXkiXejgfikX$ and 148 million people). Total BOP house-
k`fe`e[ljkipYXj\[fe\em`ifed\ekXccp]i`\e[cpk\Z_efcf^p% hold transportation spending is estimated to
9fk_f]k_\j\\oXdgc\j`ccljkiXk\k_\mXcl\f]k_\jkiXk\^p be $98.3 billion in Asia, $45.9 billion in Latin
f]leZfem\ek`feXcgXike\i`e^%
America, $24.5 billion in Africa, and $10.7 bil-
lion in Eastern Europe.
Spending by the BOP accountsfor 63% of the
total Asian transportation market, 41% of the
Eastern European market, 39% of the African market, and 28% of the
Latin American market.
In national transportation markets the BOP consistently accounts for
a large share of the total in Asia. BOP spending represents more than 60%
of the total market in every measured Asian country but Cambodia (42%)

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and Thailand (30%). In Bangladesh, Indonesia,
Pakistan, and Tajikistan the BOP share is more
than 90%.
The BOP share of transportation spending
is also consistently high in Africa. It exceeds
50% in all but three measured countries. South
Africa, where the BOP market share is just 14%,
is the most prominent exception. BOP mar-
ket shares are largest in Côte d’Ivoire (74%),
Djibouti (94%), and Nigeria (98%).
In Eastern Europe the BOP share of the mar-
ket ranges from 23% in FYR Macedonia to 77%
in Kazakhstan. In Russia the BOP transporta-
tion market, Eastern Europe’s largest, accounts
for 43% of the total.
Spending by mid-market and high-income
segments dominates the transportation mar-
ket in most countries of Latin America and
the Caribbean. The BOP share of the national
market is less than 35% in every country but
Jamaica (81%) and Peru (51%). The smallest
BOP shares are in Colombia (17%) and Paraguay
(19%).
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In most of the measured African and Asian
countries BOP transportation markets are bot-
tom heavy. BOP transportation spending is con-
centrated in the BOP1000 and BOP1500 groups,
as exemplified by Bangladesh and Burkina Faso.
Important exceptions to this pattern include
South Africa and Thailand, where BOP trans-
portation spending is significantly top heavy,
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and India, where it is marginally top heavy. BOP transportation spending
9lib`eX=Xjf in Eastern Europe and Latin America is distinctly top heavy and concen-
KFK8CKI8EJGFIK8K@FEJG<E;@E>9P@E:FD<J<>D<EK trated in the BOP2500 and BOP3000 groups. This top-heavy pattern is
9FG*''' exemplified by Brazil, which has one of the largest BOP transportation
9FG),'' markets (case study 5.2).
9FG)'''
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9FG(''' Average annual transportation spending per BOP household varies widely
9FG,''
within and between regions. In Africa and Asia, however, the median for
K_X`cXe[ this figure among measured countries is remarkably close: in Africa, $211
KFK8CKI8EJGFIK8K@FEJG<E;@E>9P@E:FD<J<>D<EK (Burkina Faso) and $275 (Uganda); and in Asia, $211 (Tajikistan). In con-
9FG*''' trast, the recorded average spending in Africa ranges from $25 a year in
9FG),'' Burundi to $157 in Nigeria, $333 in South Africa, and $517 in Gabon. In
9FG)''' Asia the range is from $101 a year in Nepal to $136 in India and $601 in
9FG(,'' Thailand. Differences in the survey questions asked and data captured
9FG(''' may account for some of the variation.
9FG,'' The median among measured countries in Eastern Europe is $141 a
year (Ukraine), and in Latin America, $521 a year (Paraguay). Average
transportation spending per BOP household in Eastern Europe is gener-
  %  j  E = @ : 2  @ 3 A = C @ 1 3 A  7 < A B 7 B C B 3

ally less than in Africa and Asia, probably reflecting that region’s heavily
urban character and its well-developed public transit systems. Russia
also reflects the Eastern European median, recording an average of $141
in transportation spending per BOP household.

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In contrast, in Latin America BOP transportation spending is dis- _flj\_fc[jg\e[`e^
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tinctly higher than in Africa and Asia: in every measured country but ).,
Peru BOP households spend more than $270 a year on average for trans-
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$613 in Brazil, and $809 in Mexico. Gif]`c\f]kfkXckiXejgfikXk`fejg\e[`e^
Within the BOP, transportation spending increases steeply—and
often disproportionately—as income rises. While the income ratio
between the BOP3000 and BOP500 groups is 6:1, the transportation ?FLJ<?FC;JG<E;@E>9P@E:FD<J<>D<EK 
spending ratio is at least 10:1 in 29 of the 36 measured countries. The 9FG*''' (#',(
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Transportation spending in the mid-market segment is higher than in

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the BOP but not dramatically so. Ratios of average mid-market to aver-
age BOP per household spending for some major countries range from
less than 2:1 in Russia and 3:1 in Mexico to 5:1 in India, 8:1 in Pakistan and
South Africa, and 12:1 in Nigeria. Transportation, as a share of total per @e[`X
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