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Capitalization, Regulation and the Poor: Access to Basic Services in Bolivia

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  • Barja, Gover
  • Urquiola, Miguel

Abstract

This paper analyses the privatization of utilities in Bolivia, detailing the particularities of the capitalization mechanism which was used for this purpose. The analysis suggests that capitalization and regulation, and the liberalization of the utilities sector more generally, succeeded in attracting foreign investment, thus fulfilling one of the central goals of the reforms of this sector. Foreign investment made possible the increase in access to basic services in urban areas, although access in rural areas still remains very low. In terms of connection, service expansion in the urban areas did not bypass the poor. On the contrary, in some cases, access improvements appear to have been particularly beneficial to low-income households. Some reform-related price increases did have adverse welfare effects. Nevertheless, the findings in this area are affected by data limitations, and in any case do not seem to outweigh the benefits brought about by greater access.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/dp2001/dp2001-34.pdf
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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper DP2001/34.

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Length: 38 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:unu:wpaper:dp2001-34

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Related research

Keywords: Privatization; Regulation; Utilities; Poverty;

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References

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  1. Barja, Gover, 1999. "Inversión y productividad en la industria boliviana de la electricidad
    [Investment and productivity in the bolivian electricity industry]
    ," MPRA Paper 23461, University Library of Munich, Germany.
  2. Barja, Gover, 1999. "Inversión y productividad en la industria boliviana de telecomunicaciones
    [Investment and productivity in the bolivian telecommunications industry]
    ," MPRA Paper 23464, University Library of Munich, Germany.
  3. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2000. "Utility privatization and the needs of the poor in Latin America - Have we learned enough to get it right?," Policy Research Working Paper Series 2407, The World Bank.
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Citations

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Cited by:
  1. John Nellis, 2003. "Privatization in Latin America," Working Papers 31, Center for Global Development.
  2. Degol Hailu & Rafael Guerreiro Osorio & Raquel Tsukada, 2009. "Privatisation and Renationalisation: What Went Wrong in Bolivia?s Water Sector?," Working Papers 58, International Policy Centre for Inclusive Growth.
  3. Barja, Gover & Monterrey, Javier & Villarroel, Sergio, 2004. "Bolivia: Impact of shocks and poverty policy on household welfare," MPRA Paper 22937, University Library of Munich, Germany.
  4. Patricia Clarke Annez & George E. Peterson, 2007. "Financing Cities : Fiscal Responsibility and Urban Infrastructure in Brazil, China, India, Poland and South Africa," World Bank Publications, The World Bank, number 6735, July.
  5. Vivien Foster & Osvaldo Irusta, 2003. "Does infrastructure reform work for the poor? A case study on the cities of La Paz and El Alto in Bolivia," Policy Research Working Paper Series 3177, The World Bank.
  6. Ugaz, Cecilia, 2002. "Consumer Participation and Pro-Poor Regulation in Latin America," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Bojanic, Antonio & Krakowski, Michael, 2003. "Regulation of the electricity industry in Bolivia : its impact on access to the poor, prices and quality," HWWA Discussion Papers 250, Hamburg Institute of International Economics (HWWA).
  8. Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, vol. 90(1), pages 69-84, September.
  9. Mauricio Garrón B. & Carlos Gustavo Machicado & Katherina Capra, 2003. "Privatization in Bolivia: The Impact on Firm Performance," Research Department Publications 3154, Inter-American Development Bank, Research Department.
  10. Checchi, Daniele & Florio, Massimo & Carrera, Jorge, 2005. "Privatization Discontent and Its Determinants: Evidence from Latin America," IZA Discussion Papers 1587, Institute for the Study of Labor (IZA).
  11. Ugaz, Cecilia, 2001. "A Public Goods Approach to Regulation of Utilities," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. Andrew MOLD, 2004. "Fdi And Poverty Reduction: A Critical Reappraisal Of The Arguments," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 20, pages 91-122.
  13. Birdsall, Nancy & Nellis, John, 2003. "Winners and Losers: Assessing the Distributional Impact of Privatization," World Development, Elsevier, vol. 31(10), pages 1617-1633, October.
  14. Clive Harris, 2003. "Private Participation in Infrastructure in Developing Countries : Trends, Impacts, and Policy Lessons," World Bank Publications, The World Bank, number 15124, July.

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