Abstract:Recent years have seen a region‐wide movement throughout Latin America and the Caribbean toward wider private participation in the provision of infrastructure, as well as in other public services. This paper discusses the possible benefits from the privatization of water services and illustrates the range of alternatives available for private participation in their provision. These alternatives are analyzed and their possible application in Latin America and the Caribbean is assessed on the basis of examples f… Show more
“…The backdrop to this shift in policy can also be attributed to pressures faced by many countries in the South in general, and in South Africa in particular, to develop partnerships with the private sector due to central government responses to externally imposed structural adjustment programs (Lee, 1996) and to the dominance of neoliberal development strategies (Peet, 2001). A scarcity of government resources used to provide public services, combined with donor pressures for fiscal reform, have had a significant impact on the move to private sector involvement in the delivery of public services.…”
Section: Water-supply Managementmentioning
confidence: 98%
“…Since 1994, the government has begun developing partnerships with the private sector with the aim of managing public services more efficiently. A vigorous debate in the development literature as to the strengths and weaknesses of moving in this policy direction has been under way for more than a decade (Batley 996;Lee 1996;Marvin and Laurie 1999). The literature is mute, however, on whether public/ private partnerships in the provision of water lead in fact to greater equity in access to water.…”
“…The backdrop to this shift in policy can also be attributed to pressures faced by many countries in the South in general, and in South Africa in particular, to develop partnerships with the private sector due to central government responses to externally imposed structural adjustment programs (Lee, 1996) and to the dominance of neoliberal development strategies (Peet, 2001). A scarcity of government resources used to provide public services, combined with donor pressures for fiscal reform, have had a significant impact on the move to private sector involvement in the delivery of public services.…”
Section: Water-supply Managementmentioning
confidence: 98%
“…Since 1994, the government has begun developing partnerships with the private sector with the aim of managing public services more efficiently. A vigorous debate in the development literature as to the strengths and weaknesses of moving in this policy direction has been under way for more than a decade (Batley 996;Lee 1996;Marvin and Laurie 1999). The literature is mute, however, on whether public/ private partnerships in the provision of water lead in fact to greater equity in access to water.…”
“… For references on ‘developing’ countries, see, for example, Batley (1996), Blokland et al . (1999), Cook and Kirkpatrick (1998), Franceys (1997 2000), Johnstone and Wood (2001), Lee (1995 1996), Nickson (1997), Rivera 1996, Roger (1999), Rondinelli and Cheema (1988), and Shirley and Walsh (2001). …”
This paper examines the interrelationship between urbanization and water supply privatization in cities in the global South. The purpose of the paper is not to evaluate the impacts of privatization; rather, the paper analyses the differences in pathways and modes of water supply privatization, focusing on urban and contrasting with rural areas. A distinction is drawn between privatization (organizational change) and commercialization (institutional change) of water supply. Emphasis is placed upon the interrelationship between regulatory change (a shift from public to private management of water supply systems), human use of and access to water, and urban waterscapes. In contrast to metaphors of 'networks' so often applied in analyses of water management, the 'archipelago' is posited as a metaphor which better captures the complex overlapping strategies of water supply provision in urban areas in the South. Building on this metaphor, and in response to the 'public-private' dualism often invoked in studies of privatization, the paper outlines an alternative typology of water management in urban areas in the South. This typology foregrounds the concepts of the territorialization of corporate power as a means of understanding the articulation between privatization and urbanization processes in the South.
“…This has not been helped by the limited experience that most governments have had with privatization. The staging of the process, with initial service contracts, followed by more complex processes of lease contracts and later concessions, has helped countries such as Mexico to develop the necessary skills (Lee 1996).This has also allowed governments time to make a more informed decision regarding asset value. A reliance on competitive bidding to provide an accurate assessment has been found to be problematic in such a specialized industry, where bidding is usually limited to a few investors and open to collusion (Lee 1995b).…”
The privatization of utilities has grown in developing countries in recent years. Privatization transactions for the utilities sector have accounted for over a third of all sales in developing countries since 1988. The introduction of privatization has not necessarily meant more competition. Consequently, utility privatization has led in many cases to the creation of regulatory structures that aim to protect consumers from monopoly abuse and to provide incentives to firms to maintain efficiency. Case studies drawing on examples from the telecommunications, electricity and water sectors indicate that creating effective regulation and a competitive environment is a difficult and slow process. The cases have shown that regulation rather than privatization achieved the largest gains. Similarly, although the variety of regulatory measures that have been introduced have made a difference, the most tangible benefits, particularly to consumers, result from the establishment of competition. The case studies have shown that privatization has preceded the development of effective regulation and competition. The development of regulatory structures is constrained by the capacity of governments to enforce regulatory rules and monitor contracts. Fostering conditions that encourage competition and lessen anti‐competitive behaviour by incumbents is a beneficial but slow process.
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