IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v21y2009i3p327-361.html
   My bibliography  Save this article

Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America

Author

Listed:
  • George R.G. Clarke

    (Eastern Europe and Central Asia-Private Sector Department at the World Bank, Washington DC, USA)

  • Katrina Kosec

    (Stanford Graduate School of Business, Stanford University, Stanford, USA)

  • Scott Wallsten

    (Progress & Freedom Foundation, Washington DC, USA)

Abstract

Introducing private sector participation (PSP) into the water and sewerage sectors is difficult and controversial. Empirical studies on its effects are scant and generally inconclusive. Case studies tend to find improvements following privatisation, but they suffer from selection bias and it is difficult to generalise their results. To explore empirically the effects of private sector participation on coverage, we assemble a new dataset of connections to water and sewerage services at the city and province level based on household surveys in Argentina, Bolivia and Brazil. The household surveys, conducted over a number of years, allow us to compile data before and after the introduction of private sector participation as well as from similar (control) regions did not privatise. Our analysis reveals that, in general, the share of households connected to piped water and sewerage improved following the introduction of private sector participation, consistent with the case study literature. We also find, however, that the share of households connected similarly improved in the control regions, suggesting that private sector participation, per se, may not have been responsible for those improvements. Results are similar when looking only at the poorest households. The share of poor households connected to piped water and sewerage increased similarly in areas both with and without private sector participation, suggesting that-in terms of connections at least-private sector participation did not harm the poor. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • George R.G. Clarke & Katrina Kosec & Scott Wallsten, 2009. "Has private participation in water and sewerage improved coverage? Empirical evidence from Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(3), pages 327-361.
  • Handle: RePEc:wly:jintdv:v:21:y:2009:i:3:p:327-361
    DOI: 10.1002/jid.1458
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/jid.1458
    File Function: Link to full text; subscription required
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jalan, Jyotsna & Ravallion, Martin, 2003. "Does piped water reduce diarrhea for children in rural India?," Journal of Econometrics, Elsevier, vol. 112(1), pages 153-173, January.
    2. Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
    3. Clarke,George R.*Gebreab, Frew A.*Mgombelo, Henr, 2003. "Telecommunications reform in Malawi," Policy Research Working Paper Series 3036, The World Bank.
    4. Komives, Kristin & Whittington, Dale & Wu, Xun, 2001. "Infrastructure coverage and the poor : the global perspective," Policy Research Working Paper Series 2551, The World Bank.
    5. Peter T. Robbins, 2003. "Transnational corporations and the discourse of water privatization," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(8), pages 1073-1082.
    6. Azam, Jean-Paul & Dia, Magueye & N'Guessan, Tchetche, 2002. "Telecommunications sector reforms in Senegal," Policy Research Working Paper Series 2894, The World Bank.
    7. Shirley, Mary M. & Tusubira, F.F. & Gebreab, Frew & Haggarty, Luke, 2002. "Telecommunications reform in Uganda," Policy Research Working Paper Series 2864, The World Bank.
    8. David McKenzie & Dilip Mookherjee, 2003. "The Distributive Impact of Privatization in Latin America: Evidence from Four Countries," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Spring 20), pages 161-234, January.
    9. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
    10. 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.
    11. Lee, Terence R. & Jouravlev, Andrei, 1997. "Private participation in the provision of water services: alternative means for private participation in the provision of water services," Medio Ambiente y Desarrollo 2, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    12. Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank.
    13. Anwandter, Lars & Ozuna, Teofilo Jr., 2002. "Can public sector reforms improve the efficiency of public water utilities?," Environment and Development Economics, Cambridge University Press, vol. 7(04), pages 687-700, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:21:y:2009:i:3:p:327-361. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.