Assessing the Impact of Mali's Water Privatization across Stakeholders
AbstractThis paper offers a quantitative evaluation of the distribution of the welfare of a water privatization experience in Mali among the key economic agents. The assessment is based on an index number inspired by Bennet (1920). The main results are as follows. First, taxpayers are the main losers as residual subsidies are much higher than expected at the time of privatization. Second and contrary to what is often claimed, users benefited through lower real water prices. Third, labor, intermediate suppliers and investors have also benefited. Fourth, foreign actors benefited. However, they did so much more than the domestic actors and this is probably what explains best the unhappiness of the Malians. Ultimately, it is the regulator’s decision to improve the relative distribution of gains that explains the departure of the private operator and the widespread sense of the failure of an experience that has generated welfare gains for users and workers, at least in the short run.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number ECARES 2011-031.
Length: 41 p.
Date of creation: Oct 2011
Date of revision:
Publication status: Published by:
privatization; regulation; efficiency; equity; distributional effects;
Other versions of this item:
- Estache, Antonio & Grifell-Tatjé, Emili, 2011. "Assessing the impact of Mali’s water privatization across stakeholders," CEPR Discussion Papers 8717, C.E.P.R. Discussion Papers.
- Antonio Estache & Emili Grifell-Tatjé, 2010. "Assessing the impact of Mali's water privatization across stakeholders," Working Papers ECARES ECARES 2010-037, ULB -- Universite Libre de Bruxelles.
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-10-22 (Africa)
- NEP-ALL-2011-10-22 (All new papers)
- NEP-CIS-2011-10-22 (Confederation of Independent States)
- NEP-REG-2011-10-22 (Regulation)
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.:
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Springer, vol. 37(3), pages 219-242, June.
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