EU-financed peripheral large-scale infrastructure projects and the White Elephant syndrome: The example of Rail Baltica

Veebel, Viljar and Markus, Raul and Ploom, Illimar (2019) EU-financed peripheral large-scale infrastructure projects and the White Elephant syndrome: The example of Rail Baltica. Acta Oeconomica, 69 (1). pp. 17-39. ISSN 0001-6373

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Abstract

The present study revolves around the question of the appropriateness of “the White Elephant syndrome” to characterise the nature of the planned trans-Baltic railway project Rail Baltica (RB) in terms of its initial financing, long-term profitability and symbolic importance. Whereas, in general, the expected outcome of the project goes well together with the EU Cohesion Policy goals, in its concrete application RB could serve as an example of the tendency of politicians and public servants to institutionally lock themselves into certain irrational choices about publicly financed mega-projects. This is what “the White Elephant syndrome” metaphor illustrates. Methodologically, this paper aims to analyse whether RB meets the common criteria of “the White Elephant syndrome” of public investments or if it can be seen as a sustainable and profitable long-term project after the initial investment.

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