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To corporatize or not to corporatize (and if so, how?)

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  • McDonald, David A.

Abstract

Governments around the world are increasingly turning to the use of stand-alone, state-owned utilities to deliver core services such as water and electricity. This article reviews the history of such ‘corporatization’ and argues that its recent resurgence has been heavily influenced by neoliberal theory and practice, raising important questions about whether it should be adopted as a public service model. Not all corporatizations promote commercialization, however. The article also discusses stand-alone utilities that have managed to stave off market pressures and develop in more equity-oriented directions. The scope for non-commercialized corporatization is narrow, but given the expansion of this organizational model it is important that we understand both its limitations and potentials, particularly in low-income countries in the South where service gaps are large and equity is a major challenge.

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  • McDonald, David A., 2016. "To corporatize or not to corporatize (and if so, how?)," Utilities Policy, Elsevier, vol. 40(C), pages 107-114.
  • Handle: RePEc:eee:juipol:v:40:y:2016:i:c:p:107-114
    DOI: 10.1016/j.jup.2016.01.002
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    2. Andrea ZATTI, 2021. "Public-Owned Enterprises (POEs): definition, evolution, and evaluation / Context," CIRIEC Studies Series, in: Andrea ZATTI & CIRIEC (ed.), Accountability, anti-corruption, and transparency policies in Public-Owned Enterprises (POEs), volume 2, chapter 0, pages 21-42, CIRIEC - Université de Liège.
    3. Lisa Bagnoli & Salvador Bertomeu & Antonio Estache & Maria Vagliasindi, 2020. "Are the Poor Better Off with Public or Private Utilities ?A Survey of the Academic Evidence on Developing Economies," Working Papers ECARES 2020-24, ULB -- Universite Libre de Bruxelles.
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    6. Beard, Victoria A. & Mitlin, Diana, 2021. "Water access in global South cities: The challenges of intermittency and affordability," World Development, Elsevier, vol. 147(C).
    7. Herrera, Veronica, 2019. "Reconciling global aspirations and local realities: Challenges facing the Sustainable Development Goals for water and sanitation," World Development, Elsevier, vol. 118(C), pages 106-117.
    8. Andrea ZATTI, 2021. "The case of Italy," CIRIEC Studies Series, in: Andrea ZATTI & CIRIEC (ed.), Accountability, anti-corruption, and transparency policies in Public-Owned Enterprises (POEs), volume 2, chapter 0, pages 43-60, CIRIEC - Université de Liège.
    9. D'Amore, Gabriella & Landriani, Loris & Lepore, Luigi, 2021. "Ownership and sustainability of Italian water utilities: The stakeholder role," Utilities Policy, Elsevier, vol. 71(C).
    10. Massimiliano Agovino & Massimiliano Cerciello & Antonio Garofalo & Loris Landriani & Luigi Lepore, 2021. "Corporate governance and sustainability in water utilities. The effects of decorporatisation in the city of Naples, Italy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 874-890, February.
    11. Hanna, Thomas M. & McDonald, David A., 2021. "From pragmatic to politicized? The future of water remunicipalization in the United States," Utilities Policy, Elsevier, vol. 72(C).
    12. Landriani, Loris & Lepore, Luigi & D'Amore, Gabriella & Pozzoli, Stefano & Alvino, Federico, 2019. "Decorporatization of a municipal water utility: A case study from Italy," Utilities Policy, Elsevier, vol. 57(C), pages 43-47.
    13. Almeida, Renan P. & Hungaro, Lucas, 2021. "Water and sanitation governance between austerity and financialization," Utilities Policy, Elsevier, vol. 71(C).
    14. Andrea Zatti, 2022. "Accountability, anti-corruption, and transparency policies in Public owned enterprises (POEs): The case of Italy," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(1), pages 43-78.
    15. Camos Daurella,Daniel & Estache,Antonio, 2017. "Regulating water and sanitation network services accounting for institutional and informational constraints," Policy Research Working Paper Series 8149, The World Bank.
    16. Rivas, Marcela González & Schroering, Caitlin, 2021. "Pittsburgh's translocal social movement: A case of the new public water," Utilities Policy, Elsevier, vol. 71(C).

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