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Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America

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Author Info
George R.G. Clarke (Eastern Europe and Central Asia-Private Sector Department at the World Bank, Washington DC, USA)
Katrina Kosec (Stanford Graduate School of Business, Stanford University, Stanford, USA)
Scott Wallsten (Progress & Freedom Foundation, Washington DC, USA)

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Abstract

Introducing private sector participation (PSP) into the water and sewerage sectors is difficult and controversial. Empirical studies on its effects are scant and generally inconclusive. Case studies tend to find improvements following privatisation, but they suffer from selection bias and it is difficult to generalise their results. To explore empirically the effects of private sector participation on coverage, we assemble a new dataset of connections to water and sewerage services at the city and province level based on household surveys in Argentina, Bolivia and Brazil. The household surveys, conducted over a number of years, allow us to compile data before and after the introduction of private sector participation as well as from similar (control) regions did not privatise. Our analysis reveals that, in general, the share of households connected to piped water and sewerage improved following the introduction of private sector participation, consistent with the case study literature. We also find, however, that the share of households connected similarly improved in the control regions, suggesting that private sector participation, per se, may not have been responsible for those improvements. Results are similar when looking only at the poorest households. The share of poor households connected to piped water and sewerage increased similarly in areas both with and without private sector participation, suggesting that-in terms of connections at least-private sector participation did not harm the poor. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1458
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 21 (2009)
Issue (Month): 3 ()
Pages: 327-361
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Handle: RePEc:wly:jintdv:v:21:y:2009:i:3:p:327-361

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Shirley, Mary M. & Tusubira, F.F. & Gebreab, Frew & Haggarty, Luke, 2002. "Telecommunications reform in Uganda," Policy Research Working Paper Series 2864, The World Bank. [Downloadable!]
  2. Dilip Mookherjee & David McKenzie, 2001. "The Distributive Impact of Privatization in Latin America: Evidence from Four Countries," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-128, Boston University - Department of Economics, revised 2002. [Downloadable!]
  3. Clarke, George R. G. & Gebreab, Frew A. & Mgombelo, Henry R., 2003. "Telecommunications reform in Malawi," Policy Research Working Paper Series 3036, The World Bank. [Downloadable!]
  4. Komives, Kristin & Whittington, Dale & Wu, Xun, 2001. "Infrastructure coverage and the poor : the global perspective," Policy Research Working Paper Series 2551, The World Bank. [Downloadable!]
  5. Peter T. Robbins, 2003. "Transnational corporations and the discourse of water privatization," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 1073-1082. [Downloadable!]
  6. Anwandter, Lars & Ozuna, Teofilo Jr., 2002. "Can public sector reforms improve the efficiency of public water utilities?," Environment and Development Economics, Cambridge University Press, vol. 7(04), pages 687-700, October. [Downloadable!]
  7. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
  8. William L. Megginson & Jeffry M. Netter, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June. [Downloadable!] (restricted)
  9. Azam, Jean-Paul & Dia, Magueye & N'Guessan, Tchetche, 2002. "Telecommunications sector reforms in Senegal," Policy Research Working Paper Series 2894, The World Bank. [Downloadable!]
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  1. Paul Carrillo & Orazio Bellettini & Elizabeth Coombs, 2007. "Mantenerse público o privatizar? Análisis comparativo del servicio de agua entre Quito y Guayaquil," RES Working Papers 3237, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Sebastian Galiani & Martín González Rozada & Ernesto Schargrodsky, 2007. "Expansiones de Agua en las Barriadas: Salud y Ahorros," RES Working Papers 3235, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Parker, David & Kirkpatrick, Colin & Figueira-Theodorakopoulou, Catarina, 2005. "Infrastructure Regulation and Poverty Reduction in Developing Countries: A Review of the Evidence and a Research Agenda," Centre on Regulation and Competition (CRC) Working papers 30608, University of Manchester, Institute for Development Policy and Management (IDPM). [Downloadable!]
    Other versions:
  4. Mauricio Olivera & Felipe Barrera, 2007. "Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia," RES Working Papers 3230, Inter-American Development Bank, Research Department. [Downloadable!]
    Other versions:
  5. Mauricio Olivera & Felipe Barrera, 2007. "La sociedad gana o pierde como resultado de la privatizacion? El caso de Colombia," RES Working Papers 3231, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Estache, Antonio & Goicoechea, Ana & Trujillo, Lourdes, 2006. "Utilities reforms and corruption in developing countries," Policy Research Working Paper Series 4081, The World Bank. [Downloadable!]
    Other versions:
  7. Paul Carrillo & Orazio Bellettini & Elizabeth Coombs, 2007. "Stay Public or Go Private?: A Comparative Analysis of Water Services between Quito and Guayaquil," RES Working Papers 3236, Inter-American Development Bank, Research Department. [Downloadable!]
  8. Sebastian Galiani & Martín González Rozada & Ernesto Schargrodsky, 2007. "Water Expansions in Shantytowns: Health and Savings," RES Working Papers 3234, Inter-American Development Bank, Research Department. [Downloadable!]
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