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Utilities reforms and corruption in developing countries

  • Estache, Antonio
  • Goicoechea, Ana
  • Trujillo, Lourdes

This paper shows empirically that"privatization"in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. The results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utility services.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4081.

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Date of creation: 01 Dec 2006
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Handle: RePEc:wbk:wbrwps:4081
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