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

  • FELIPE BARRERA-OSORIO
  • MAURICIO OLIVERA
  • CARLOS OSPINO

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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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. Rama,Martin G., 1997. "Efficient public sector downsizing," Policy Research Working Paper Series 1840, The World Bank.
  2. 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.
  3. 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.
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