Assessing the Impact of Mali's Water Privatization across Stakeholders
This paper offers a quantitative evaluation of the distribution of the welfare of a water privatization experience in Mali among the key economic agents. The assessment is based on an index number inspired by Bennet (1920). The main results are as follows. First, taxpayers are the main losers as residual subsidies are much higher than expected at the time of privatization. Second and contrary to what is often claimed, users benefited through lower real water prices. Third, labor, intermediate suppliers and investors have also benefited. Fourth, foreign actors benefited. However, they did so much more than the domestic actors and this is probably what explains best the unhappiness of the Malians. Ultimately, it is the regulator’s decision to improve the relative distribution of gains that explains the departure of the private operator and the widespread sense of the failure of an experience that has generated welfare gains for users and workers, at least in the short run.
|Date of creation:||Oct 2011|
|Date of revision:|
|Publication status:||Published by:|
|Contact details of provider:|| Postal: Av. F.D., Roosevelt, 39, 1050 Bruxelles|
Phone: (32 2) 650 30 75
Fax: (32 2) 650 44 75
Web page: http://difusion.ulb.ac.be
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kristof Witte & David Saal, 2010.
"Is a little sunshine all we need? On the impact of sunshine regulation on profits, productivity and prices in the Dutch drinking water sector,"
Journal of Regulatory Economics,
Springer, vol. 37(3), pages 219-242, June.
- Kristof De Witte & David S. Saal, 2008. "Is a little sunshine all we need? On the impact of sunshine regulation on profits, productivity and prices in the Dutch drinking water sector," Working Papers Department of Economics ces0828, KU Leuven, Faculty of Economics and Business, Department of Economics.
- Colin Kirkpatrick & David Parker & Yin-Fang Zhang, 2006. "An Empirical Analysis of State and Private-Sector Provision of Water Services in Africa," World Bank Economic Review, World Bank Group, vol. 20(1), pages 143-163.
- Garrigosa, E Genescá & Tatjé, E Grifell, 1992. "Profits and total factor productivity: A comparative analysis," Omega, Elsevier, vol. 20(5-6), pages 553-568.
- Denis Lawrence & Anya Richards, 2004. "Distributing the Gains from Waterfront Productivity Improvements," The Economic Record, The Economic Society of Australia, vol. 80(s1), pages S43-S52, 09.
- Estache, Antonio & Kouassi, Eugene, 2002. "Sector organization, governance, and the inefficiency of African water utilities," Policy Research Working Paper Series 2890, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:eca:wpaper:2013/98987. 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: (Benoit Pauwels)
If references are entirely missing, you can add them using this form.