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Making infrastructure reform in Latin America work for the poor

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  • Estache, Antonio
  • Foster, Vivien
  • Wodon, Quentin

Abstract

Ten years of infrastructure reform in Latin America can teach us a lot about how to make privatization work for the poor. There are macroeconomic and microeconomic transmission mechanisms through which such reform may affect those sectors. This paper discusses policy instruments to increase their access to services and make the latter more affordable for them. The advantages and disadvantages of each instrument are evaluated and examples are given. The ways in which policy-makers should go about setting social priorities in infrastructure reform and choosing the most appropriate policy instruments in each case are then considered. Emphasis is placed on the need for simple and rapid empirical diagnostic tools, and finally it is stressed that a pro-poor reform strategy requires a political commitment from the outset of the reform process and an integrated approach between privatization, social and regulatory policy.

Suggested Citation

  • Estache, Antonio & Foster, Vivien & Wodon, Quentin, 2002. "Making infrastructure reform in Latin America work for the poor," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
  • Handle: RePEc:ecr:col070:10910 Note: Includes bibliography
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    File URL: http://repositorio.cepal.org/handle/11362/10910
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    References listed on IDEAS

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    1. Penelope Brook Cowen & Nicola Tynan, 1999. "Reaching the Urban Poor with Private Infrastructure," World Bank Other Operational Studies 11473, The World Bank.
    2. Wodon, Quentin & Yitzhaki, Shlomo, 2002. "Inequality and Social Welfare," MPRA Paper 12298, University Library of Munich, Germany.
    3. Canning, David, 1998. "A database of world infrastructure stocks, 1950-95," Policy Research Working Paper Series 1929, The World Bank.
    4. Foster, Vivien*Gomez-Lobo, Andres*Halpern, Jonat, 2000. "Designing direct subsidies for water and sanitation services - Panama : a case study," Policy Research Working Paper Series 2344, The World Bank.
    5. Ajwad, Mohamed Ishan & Wodon, Quentin, 2002. "Who Benefits from Increased Access to Public Services at the Local Level? A Marginal Benefit Incidence Analysis for Education and Basic Infrastructure," MPRA Paper 12309, University Library of Munich, Germany.
    6. Ferro, Gustavo, 1999. "Evolución del Cuadro Tarifario de Aguas Argentinas: financiamiento de las expansiones en Buenos Aires," UADE Textos de Discusión 11_1999, Instituto de Economía, Universidad Argentina de la Empresa.
    7. Baffes, John & Shah, Anwar, 1998. "Productivity of Public Spending, Sectoral Allocation Choices, and Economic Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 46(2), pages 291-303, January.
    8. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
    9. Chisari, Omar & Estache, Antonio & Romero, Carlos, 1999. "Winners and Losers from the Privatization and Regulation of Utilities: Lessons from a General Equilibrium Model of Argentina," World Bank Economic Review, World Bank Group, vol. 13(2), pages 357-378, May.
    10. Estanislao Gacitua-Mario & Quentin Wodon, 2001. "Measurement and Meaning : Combining Quantitative and Qualitative Methods for the Analysis of Poverty and Social Exclusion in Latin America," World Bank Publications, The World Bank, number 14035.
    11. Nadiri, M Ishaq & Mamuneas, Theofanis P, 1994. "The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 22-37, February.
    12. Rodney Maddock & Elkin Castano, 1991. "The Welfare Impact of Rising Block Pricing: Electricity in Colombia," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 65-78.
    13. Chisari, Omar & Estache, Antonio, 1999. "The Needs of the Poor in Infraestructure Privatization. The Role of Universal Service Obligations. The Case of Argentina," UADE Textos de Discusión 3_1999, Instituto de Economía, Universidad Argentina de la Empresa.
    14. Wodon, Quentin & Velez, Eduardo, 2001. "Poverty and Inequality," MPRA Paper 12307, University Library of Munich, Germany.
    15. Antonio Estache & V. Foster & Q. Wodon, 2002. "Accounting for Poverty in Infrastructure Reform: Learning from Latin America's Experience," ULB Institutional Repository 2013/44108, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Malini Ranganathan, 2014. "Paying for Pipes, Claiming Citizenship: Political Agency and Water Reforms at the Urban Periphery," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(2), pages 590-608, March.
    2. Nepal, Rabindra & Jamasb, Tooraj, 2012. "Reforming the power sector in transition: Do institutions matter?," Energy Economics, Elsevier, vol. 34(5), pages 1675-1682.

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