Thirst for Reform? Private Sector Participation in Providing Mexico City's Water Supply
The case in Mexico City offered an opportunity to observe the advantages, and disadvantages of gradualist reform. Unfortunately, the authors find that the long-term nature of an incremental approach does not match well with the generally shorter-te...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2001/08/1561469/thirst-reform-private-sector-participation-providing-mexico-citys-water-supply http://hdl.handle.net/10986/19569 |
| Summary: | The case in Mexico City offered an
opportunity to observe the advantages, and disadvantages of
gradualist reform. Unfortunately, the authors find that the
long-term nature of an incremental approach does not match
well with the generally shorter-term horizons of elected
politicians. Difficult decisions in implementation are left
to later years, which pushes potentially unpopular actions
onto the shoulders of future administrations, while allowing
the current government to claim credit for instituting
reform. The reform planned - and implemented - was not
designed to tackle the city's most serious water
problems, including over-consumption, and waste. And reform
did little to change residential consumers' incentives
to conserve water. Over-exploitation of the aquifer has been
a problem since at least the 1930s. Mexico City is built on
a series of drained lakebeds, and the land is soft, and
prone to settling, or subsiding, as the aquifer is depleted.
Several areas of the city center have sunk by over two
meters in the past decade alone. And by virtue of its
location, and elevation, the city's alternative water
sources are expensive. The need for change is stark, but the
power to undertake reform to tackle broad problems of
resource management in the city, and surrounding areas, lies
outside the jurisdiction of the Federal District, with the
federal government. Such external funding of major supply
projects, weakens the incentives for conservation. Reform
reduced the increasing rate of over-exploitation of the
aquifer, but partly by simply failing to meet demand. Reform
to provide more equitable, and sustainable water delivery,
must focus on improving the efficiency of operations, on
substantially reforming the way water resources are priced,
and allocated, and, on the design, management, and pricing
of wastewater services. Federal subsidies for new production
must be reduced, prices for system operators, and consumers
must rise, and more must be invested in the treatment, and
storage of wastewater - all of which requires strong
political leadership. |
|---|