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The reasons for World Bank support of infrastructure privatization in Sub-Saharan Africa: a critical overview

Author

Listed:
  • Arthur Foch

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Whereas infrastructure privatization globally yields its poorest effects in the least developped countries, the World Bank (WB) has prescribed this policy in Sub-Saharan Africa (SSA) more than anywhere else and has intensifed its prescriptions in recent years. This paper questions the utility of these prescriptions. Relying on an empirical analysis based on 270 infrastructure privatization cases in SSA between 1960 and 2009, it tests a number of hypotheses in order to determine whether infrastructure privatization has been most beneficial to firms of the main WB donors (the G10). A first result is that foreign and G10 firms benefit more from infrastructure privatization when it is supported by the WB than when it is not. But the most striking result is that the WB provides greater support to privatization in the sub-sectors of infrastructure that benefit the most to G10 firms.

Suggested Citation

  • Arthur Foch, 2013. "The reasons for World Bank support of infrastructure privatization in Sub-Saharan Africa: a critical overview," Post-Print halshs-01044506, HAL.
    • Handle: RePEc:hal:journl:halshs-01044506
    as

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