IDEAS home Printed from
   My bibliography  Save this paper

Infrastructure restructuring and regulation - building a base for sustainable growth


  • Alexander, Ian
  • Estache, Antonio


The link between economic growth, and better provision of infrastructure services may be unproven, but it is clear that reforms to make infrastructure services more competitive (where possible), and to provide strong, and independent economic regulation of natural monopolies, do create an environment more conducive to: 1) Private sector participation in infrastructure investments. 2) companies trying to cut costs, and pass the savings on to consumers. 3) Better provision of services (through faster rollout of infrastructure, for example, and through innovative solutions for delivering services to customers who are not connected to an existing network). It is important that policymakers make the right decisions when deciding how to restructure infrastructure. First, they should review the evidence on the impact various types of reform have had. The authors provide an overview of the evidence from - and lessons learned in - Latin America, one of the first regions to undertake wholesale reform of its infrastructure service provides. Among their conclusions: a) the reform of utility, and infrastructure industries is vital to economic growth. b) Apparently well-founded, but wrong decisions can damage growth prospects. C) Reform should combine changes in industry structure, ownership, and (through effective regulation) behavior. To minimize the risk of misconduct by infrastructure companies, the government should introduce: i) As much competition as possible (after evaluating all tradeoffs). ii) Rules to limit (or eliminate) vertical, and horizontal ownership, which makes it difficult to regulate company behavior. iii) Rules to ensure that regulators get all the information they need, and that it is timely, consistent, and accurate.

Suggested Citation

  • Alexander, Ian & Estache, Antonio, 2000. "Infrastructure restructuring and regulation - building a base for sustainable growth," Policy Research Working Paper Series 2415, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2415

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Fioralba Vela, 2013. "Strategic Management of Transport Infrastructure Development in Albania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(2), pages 176-184, April.
    2. Nicholas Sim, 2005. "Service liberalization, endogenous industrial composition and modernization," Applied Economics Letters, Taylor & Francis Journals, vol. 12(3), pages 161-163.
    3. Fioralba Vela & Pranvera Resulaj, 2012. "Strategic Management Of Energy Infrastructure Development In Albania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 73-76, December.
    4. Li, Xiaoying & Liu, Xiaming, 2005. "Foreign Direct Investment and Economic Growth: An Increasingly Endogenous Relationship," World Development, Elsevier, vol. 33(3), pages 393-407, March.
    5. Noelia Martín Morales, 2003. "La privatización de activos desde un punto de vista macroeconómico: evidencia empírica usando un modelo de crecimiento económico para América Latina," Documentos de trabajo conjunto ULL-ULPGC 2003-09, Facultad de Ciencias Económicas de la ULPGC.


    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:wbk:wbrwps:2415. 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: (Roula I. Yazigi). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.