Highway 407 - Laura - DIRECT EXAMPLE of the MODEL

Highway 407 - Laura - DIRECT EXAMPLE of the MODEL - GOAL:...

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GOAL: To alleviate traffic congestion in GTA and especially on the east-west route cost effectively and in as short a time as possible. INTERVENTION: To establish and privatize a new east-west route (407) to ease the congestion on the main route (401). The new privatized highway is intended to reduce traffic, therefore reducing the amount of time spent commuting, hence encouraging investors and stimulating the economy through productive time gained. ANALYSIS: This is a DIRECT intervention. The government is directly involved at A in supporting the decision to privatize the highway (407) to improve traffic flow and efficiency. At B: (i) the goal of reduce traffic congestion in the GTA is satisfied since another east-west route is introduced to relieve the pressure on the existing one (401). (ii) the intended goal is achieved by the government’s decision to lay the burden of developing, designing, building operating and maintaining of the new highway on the private sector. (iii) a new state of equilibrium is established because the change in government policies that allow for privatization enabled the government to share the financial burden with the private sector, resulting in quicker and more cost efficient building of highway 407. This curbed the traffic congestion problem faster and more efficiently than if the government was the only player. This intervention is COERCIVE because when the government makes a decision, it is very
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Highway 407 - Laura - DIRECT EXAMPLE of the MODEL - GOAL:...

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