IDEAS home Printed from https://ideas.repec.org/a/ist/iujecs/v652022651p129-160.html
   My bibliography  Save this article

Transformation of Water Services: Lessons Learned from Water Privatization in Multiple Countries

Author

Listed:
  • Mikail Pehlivan

    (Trakya University, Faculty of Economics and Administrative Sciences, Department of Finance, Edirne, Turkiye)

  • Nazan Susam

    (Istanbul University, Faculty of Economics, Department of Finance, Istanbul, Turkey)

Abstract

The transformation of water services is among the issues that have entered the world agenda in the last 30 years. Although recommendations from international organizations affect water policies of individual countries, water privatization realized as public–private cooperation has been spurred by the idea of establishing new markets for global water companies. This transition is rooted in the neoliberal policies of such international organizations. This study, which follows the literature review method, aims to examine the reasons underlying the privatization of water services as well as the privatization practices implemented in different countries. The results reveal that excluding the countries where privatization is offered as a credit requirement by international organizations (India, Argentina, Bolivia, and Turkey), in developed countries (France and England) where privatization is conducted without coercion, water services management has not been successful and cannot be used as an example for other countries. In contrast, many cities in developed and developing countries have recently implemented remunicipalization, returning the control of water services to public authorities. Finally, countries that have implemented privatization have failed in terms of financing, investment, and efficiency, and the privatization process has imposed additional financial burdens. Water privatization, therefore, cannot be considered as a solution to water management.

Suggested Citation

  • Mikail Pehlivan & Nazan Susam, 2022. "Transformation of Water Services: Lessons Learned from Water Privatization in Multiple Countries," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 65(65), pages 129-160, June.
    • Handle: RePEc:ist:iujecs:v:65:2022:65:1:p:129-160
    DOI: 10.26650/JECS2021-943895
    as

    Download full text from publisher

    File URL: https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/99FD962943F740EE9AA343A8EFF9426B
    Download Restriction: no
    File URL: https://iupress.istanbul.edu.tr/en/journal/jecs/article/su-hizmetlerinde-yasanan-donusum-suyun-ozellestirilmesi-ve-ulke-uygulamalari-ile-kazanilan-deneyimler
    Download Restriction: no
    File URL: https://libkey.io/10.26650/JECS2021-943895?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Antonio Estache & MartÌn A. Rossi, 2002. "How Different Is the Efficiency of Public and Private Water Companies in Asia?," The World Bank Economic Review, World Bank, vol. 16(1), pages 139-148, June.
    2. Werner Baer & Gabriel Montes-Rojas, 2008. "From Privatization to Re-nationalization: What went Wrong with Privatizations in Argentina?," Oxford Development Studies, Taylor & Francis Journals, vol. 36(3), pages 323-337.
    3. Jihad Elnaboulsi, 2001. "Organization, Management and Delegation in the French Water Industry," Post-Print hal-00447923, HAL.
    4. Jihad C. Elnaboulsi, 2001. "Organization, Management and Delegation in the French Water Industry," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(4), pages 507-547, December.
    5. David Saal & David Parker & Tom Weyman-Jones, 2007. "Determining the contribution of technical change, efficiency change and scale change to productivity growth in the privatized English and Welsh water and sewerage industry: 1985–2000," Journal of Productivity Analysis, Springer, vol. 28(1), pages 127-139, October.
    6. Frederico Neto, 1998. "Water privatization and regulation in England and France: a tale of two models," Natural Resources Forum, Blackwell Publishing, vol. 22(2), pages 107-117, May.
    7. Philippe Marin, 2009. "Public-Private Partnerships for Urban Water Utilities : A Review of Experiences in Developing Countries," World Bank Publications - Books, The World Bank Group, number 2703, December.
    8. Manuel Schiffler, 2015. "Water, Politics and Money," Springer Books, Springer, edition 127, number 978-3-319-16691-9, November.
    9. Estache, Antonio & Perelman, Sergio & Trujillo, Lourdes, 2005. "Infrastructure performance and reform in developing and transition economies: evidence from a survey of productivity measures," Policy Research Working Paper Series 3514, The World Bank.
    10. Lobina, Emanuele & Hall, David, 2007. "Experience with private sector participation in Grenoble, France, and lessons on strengthening public water operations," Utilities Policy, Elsevier, vol. 15(2), pages 93-109, June.
    11. Casarin, Ariel A. & Delfino, Jose A. & Delfino, Maria Eugenia, 2007. "Failures in water reform: Lessons from the Buenos Aires's concession," Utilities Policy, Elsevier, vol. 15(4), pages 234-247, December.
    12. Dore, Mohammed H. I. & Kushner, Joseph & Zumer, Klemen, 2004. "Privatization of water in the UK and France--What can we learn?," Utilities Policy, Elsevier, vol. 12(1), pages 41-50, March.
    13. 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.
    14. Rijsberman, Frank R., 2006. "Water scarcity: Fact or fiction?," Agricultural Water Management, Elsevier, vol. 80(1-3), pages 5-22, February.
    15. Johnstone, Nick & Wood, Libby & Hearne, Robert R., 1999. "The Regulation of Private Sector Participation in Urban Water Supply and Sanitation: Realising Social and Environmental Objectives in Developing Countries," Discussion Papers 24142, International Institute for Environment and Development, Environmental Economics Programme.
    16. Ruiz-Villaverde, Alberto & González-Gómez, Francisco & J. Picazo- Tadeo, Andrés, 2015. "The privatisation of urban water services: theory and empirical evidence in the case of Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 31, pages 157-174.
    17. Hall, David & Lobina, Emanuele, 2007. "International actors and multinational water company strategies in Europe, 1990-2003," Utilities Policy, Elsevier, vol. 15(2), pages 64-77, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massarutto, Antonio & Ermano, Paolo, 2013. "Drowned in an inch of water," Utilities Policy, Elsevier, vol. 24(C), pages 20-31.
    2. Marta Suárez-Varela & María los Ángeles García-Valiñas & Francisco González-Gómez & Andrés J Picazo-Tadeo, 2017. "Ownership and Performance in Water Services Revisited: Does Private Management Really Outperform Public?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2355-2373, June.
    3. Lin, Chen, 2005. "Service quality and prospects for benchmarking: Evidence from the Peru water sector," Utilities Policy, Elsevier, vol. 13(3), pages 230-239, September.
    4. Roberto Martínez-Espiñeira & Maria A. García-Valiñas & Francisco González-Gómez, 2009. "Does Private Management of Water Supply Services Really Increase Prices? An Empirical Analysis in Spain," Urban Studies, Urban Studies Journal Limited, vol. 46(4), pages 923-945, April.
    5. de Souza Pereira, Mariana & Magalhães Filho, Fernando Jorge Corrêa & de Morais Lima, Priscila & Tabak, Benjamin Miranda & Constantino, Michel, 2022. "Sanitation and water services: Who is the most efficient provider public or private? Evidences for Brazil," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    6. Bel, Germà, 2020. "Public versus private water delivery, remunicipalization and water tariffs," Utilities Policy, Elsevier, vol. 62(C).
    7. Walter, Matthias & Cullmann, Astrid & von Hirschhausen, Christian & Wand, Robert & Zschille, Michael, 2009. "Quo vadis efficiency analysis of water distribution? A comparative literature review," Utilities Policy, Elsevier, vol. 17(3-4), pages 225-232, September.
    8. Jinjin Zhao, 2020. "Productivity change in the privatized water sector in China (1999–2006)," Journal of Productivity Analysis, Springer, vol. 53(2), pages 227-241, April.
    9. Miguel A. García-Rubio & Francisco González-Gómez & Jorge Guardiola, 2009. "Performance and ownership in the governance of urban water," FEG Working Paper Series 09/03, Faculty of Economics and Business (University of Granada).
    10. Devkar, Ganesh A. & Mahalingam, Ashwin & Deep, Akash & Thillairajan, A., 2013. "Impact of Private Sector Participation on access and quality in provision of electricity, telecom and water services in developing countries: A systematic review," Utilities Policy, Elsevier, vol. 27(C), pages 65-81.
    11. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, vol. 17(3-4), pages 233-244, September.
    12. Hulya Dagdeviren, 2011. "Political Economy Of Contractual Disputes In Private Water And Sanitation:Lessons From Argentina," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(1), pages 25-44, March.
    13. Romano, Giulia & Molinos-Senante, María & Guerrini, Andrea, 2017. "Water utility efficiency assessment in Italy by accounting for service quality: An empirical investigation," Utilities Policy, Elsevier, vol. 45(C), pages 97-108.
    14. Nuno Ferreira da Cruz & Pedro Simões & Rui Cunha Marques, 2013. "The Hurdles of Local Governments with Ppp Contracts in the Waste Sector," Environment and Planning C, , vol. 31(2), pages 292-307, April.
    15. Estrin, Saul & Pelletier, Adeline, 2016. "Privatisation in Developing Countries: What Are the Lessons of Recent Experience?," IZA Discussion Papers 10297, Institute of Labor Economics (IZA).
    16. Francisco González-Gómez & Miguel García‐Rubio & Francisco Alcalá-Olid & M. Ortega-Díaz, 2013. "Outsourcing and Efficiency in the Management of Rural Water Services," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(3), pages 731-747, February.
    17. Ouda, Omar K.M. & Al-Waked, Rafat F. & Alshehri, Abdulrahman A., 2014. "Privatization of water-supply services in Saudi Arabia: A unique experience," Utilities Policy, Elsevier, vol. 31(C), pages 107-113.
    18. Dethier, Jean-Jacques & Moore, Alexander, 2012. "Infrastructure in developing countries: An overview of some economic issues," Discussion Papers 123305, University of Bonn, Center for Development Research (ZEF).
    19. Kosec, Katrina, 2013. "The child health implications of privatizing Africa’s urban water supply:," IFPRI discussion papers 1269, International Food Policy Research Institute (IFPRI).
    20. Scheele, Ulrich, 2007. "Privatisierung, Liberalisierung und Deregulierung in netzgebundenen Infrastruktursektoren," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Gust, Dieter (ed.), Wandel der Stromversorgung und räumliche Politik, volume 127, pages 35-67, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ist:iujecs:v:65:2022:65:1:p:129-160. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ertugrul YASAR (email available below). General contact details of provider: https://edirc.repec.org/data/ifisttr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.