Does Private Sector Participation Improve Performance in Electricity and Water Distribution?
This study addresses the question with a rigorous econometric approach and distills global results from a multitude of evidence. The data set compiled is unique in its coverage, size, and composition, making it possible to address for the first tim...
| Main Authors: | , , |
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2008/10/9949962/private-sector-participation-improve-performance-electricity-water-distribution http://hdl.handle.net/10986/6605 |
| Summary: | This study addresses the question with a
rigorous econometric approach and distills global results
from a multitude of evidence. The data set compiled is
unique in its coverage, size, and composition, making it
possible to address for the first time methodological
problems that have plagued empirical research and hampered
conclusive results. The findings provide some answers, but
also indicate where the challenges lie going forward.
Privately run water and electricity utilities outperform
comparable state-owned companies in terms of labor
productivity and operational efficiency, but staff
reductions also occur. Policy makers need to be aware of and
acknowledge both the benefits and the costs of reform. Clear
communication between stakeholders plays an important role
in the acceptance and success of private participation, and
a strategy for mitigating labor issues should be an integral
part of reform efforts. The study also makes it clear that
the investment problem is not solved by private
participation alone, and it raises questions about the scope
for increasing residential tariffs in low-income countries
and thus the long-term sustainability of improvements in
service delivery, be it by public or private operators. |
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