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Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia

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  • FELIPE BARRERA-OSORIO
  • MAURICIO OLIVERA
  • CARLOS OSPINO

Abstract

This paper evaluates the impact of water sector privatization in Colombia on access, price and water quality, as well as health outcomes using differences-in-differences methodology. The main findings of the impact of water privatization are: (i) an improvement in the quality of water and an increase in the frequency of the service in privatized urban municipalities for the lower quintiles; (ii) a positive effect on health outcomes in both urban and rural areas; (iii) a negative effect on payment for the lower quintiles; and (iv) strong negative effects on access to water in rural areas. Some of these effects appear in municipalities with better technical capacity. Copyright (c) The London School of Economics and Political Science 2008.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 76 (2009)
Issue (Month): 304 (October)
Pages: 649-674

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Handle: RePEc:bla:econom:v:76:y:2009:i:304:p:649-674

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  1. Alberto Chong & Florencio Lopez-de-Silanes, 2004. "Privatización en México," Research Department Publications 4374, Inter-American Development Bank, Research Department.
  2. Carlos Pombo & Manuel Ramírez, 2003. "Privatization in Colombia: A Plant Performance Analysis," Research Department Publications 3151, Inter-American Development Bank, Research Department.
  3. Marcela Meléndez & Andrés Gómez-Lobo Echeñique, 2007. "Social Policy, Regulation and Private Sector water supply: the case of Colombia," Working Papers wp252, University of Chile, Department of Economics.
  4. Albert Chong & Florencio López-de-Silanes, 2004. "Privatization in Latin America: What Does the Evidence Say?," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  5. Fabio Sánchez Torres & Michael Smart & Juan Gonzalo Zapata Giraldo, 2002. "Intergovernmental transfers and municipal finance in Colombia," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 002915, FEDESARROLLO.
  6. Eduardo Lora & Ugo Panizza, 2002. "Structural Reforms in Latin America under Scrutiny," Research Department Publications 4301, Inter-American Development Bank, Research Department.
  7. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2002. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Working Papers 54, Universidad de San Andres, Departamento de Economia, revised Sep 2005.
  8. Blank, Rebecca M, 2000. "When Can Public Policy Makers Rely on Private Markets? The Effective Provision of Social Services," Economic Journal, Royal Economic Society, vol. 110(462), pages C34-49, March.
  9. Fiszbein, Ariel, 1997. "The Emergence of local capacity: Lessons from Colombia," World Development, Elsevier, vol. 25(7), pages 1029-1043, July.
  10. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  11. Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, vol. 30(6), pages 899-912, June.
  12. Héctor Ochoa Díaz & Jaime Andrés Collazos Rodríguez, 2004. "La evaluación del desempeño de las empresas privatizadas en Colombia: ¿Coincide con la experiencia internacional?," ESTUDIOS GERENCIALES, UNIVERSIDAD ICESI.
  13. Rama,Martin G., 1997. "Efficient public sector downsizing," Policy Research Working Paper Series 1840, The World Bank.
  14. George R.G. Clarke & Katrina Kosec & Scott Wallsten, 2009. "Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 327-361.
  15. AndrÈs GÛmez-Lobo & Dante Contreras, 2003. "Water Subsidy Policies: A Comparison of the Chilean and Colombian Schemes," World Bank Economic Review, World Bank Group, vol. 17(3), pages 391-407, December.
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Cited by:
  1. Kosec, Katrina, 2013. "The child health implications of privatizing Africa’s urban water supply:," IFPRI discussion papers 1269, International Food Policy Research Institute (IFPRI).
  2. Borraz, Fernando & Pampillon, Nicolas Gonzalez & Olarreaga, Marcelo, 2013. "Water nationalization and service quality," Policy Research Working Paper Series 6318, The World Bank.
  3. Calzada, Joan & Iranzo Sancho, Susana, 2012. "Neither Private nor Public: The Effects of Communal Provision of Water on Child Health in Peru," Working Papers 2072/196649, Universitat Rovira i Virgili, Department of Economics.
  4. Fernando Borraz & Nicolás Gonzalez Pampillón & Marcelo Olarreaga, 2011. "Water nationalization: network access, quality, and health outcomes," Documentos de Trabajo (working papers) 1811, Department of Economics - dECON.

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