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Capitalization, Regulation and the Poor: Access to basic services in Bolivia

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  • Barja, Gover
  • Urquiola, Miguel

Abstract

This paper analyses the privatization of utilities in Bolivia, detailing the particularities of the capitalization mechanism that was used for this purpose. The analysis suggests that capitalization and regulation, and the liberalization of the utilities sector more generally, succeeded in attracting foreign investment, thus fulfilling one of the central goals of the reforms of this sector. Foreign investment made possible the increase in access to basic services in urban areas, although access in rural areas remains very low. In terms of connection, service expansion in the urban areas did not bypass the poor. On the contrary, in some cases, access improvements appear to have been particularly beneficial to low-income households. Some reform-related price increases did have adverse welfare effects. Nevertheless, the findings in this area are affected by data limitations, and in any case, do not seem to outweigh the benefits brought about by greater access.

Suggested Citation

  • Barja, Gover & Urquiola, Miguel, 2001. "Capitalization, Regulation and the Poor: Access to basic services in Bolivia," EconStor Preprints 335579, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:335579
    Note: This study has been prepared within the UNU/WIDER project on “The Social Impact of Privatization and Regulation of Utilities in Latin America”, co-directed by Cecilia Ugaz, UNU/WIDER (Helsinki), and Professor Catherine Waddams, University of East Anglia (Norwich). UNU/WIDER gratefully acknowledges the financial contribution to the project by the Ministry for Foreign Affairs of Finland.
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    References listed on IDEAS

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    1. Barja Daza, Gover, 1999. "Inversión y productividad en la industria boliviana de telecomunicaciones," Series Históricas 7455, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Estache, Antonio & Gomez-Lobo, Andres & Leipziger, Danny, 2000. "Utility privatization and the needs of the poor in Latin America - Have we learned enough to get it right?," Policy Research Working Paper Series 2407, The World Bank.
    3. Catherine Waddams & Ruth Hancock, 1998. "Distributional effects of liberalising UK residential utility markets," Fiscal Studies, Institute for Fiscal Studies, vol. 19(3), pages 295-319, August.
    4. Barja Daza, Gover, 1999. "Inversión y productividad en la industria boliviana de electricidad," Series Históricas 7489, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. is not listed on IDEAS
    2. Gover Barja Daza & Javier Monterrey Arce & Sergio Villarroel Böhrt, 2006. "Bolivia: Impact of shocks and poverty policy on household welfare," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB), issue 6, pages 63-123.
    3. John Nellis, 2003. "Privatization in Latin America," Working Papers 31, Center for Global Development.
    4. Hailu, Degol & Osorio, Rafael Guerreiro & Tsukada, Raquel, 2012. "Privatization and Renationalization: What Went Wrong in Bolivia’s Water Sector?," World Development, Elsevier, vol. 40(12), pages 2564-2577.
    5. Cecilia Ugaz, 2002. "Consumer Participation and Pro-Poor Regulation in Latin America," WIDER Working Paper Series DP2002-121, World Institute for Development Economic Research (UNU-WIDER).
    6. Ugaz, Cecilia, 2001. "A Public Goods Approach to Regulation of Utilities," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    7. Patricia Clarke Annez & George E. Peterson, 2007. "Financing Cities : Fiscal Responsibility and Urban Infrastructure in Brazil, China, India, Poland and South Africa," World Bank Publications - Books, The World Bank Group, number 6735, April.
    8. Birdsall, Nancy & Nellis, John, 2003. "Winners and Losers: Assessing the Distributional Impact of Privatization," World Development, Elsevier, vol. 31(10), pages 1617-1633, October.
    9. Andrew MOLD, 2004. "Fdi And Poverty Reduction: A Critical Reappraisal Of The Arguments," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 20, pages 91-122.
    10. Benjamin Kohl, 2004. "Privatization Bolivian style: a cautionary tale," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(4), pages 893-908, December.
    11. Kirkpatrick, Colin & Parker, David, 2004. "Regulation and the Privatisation of Water Services in Developing Countries: Assessing the Impact of the General Agreement on Trade in Services (GATS)," Centre on Regulation and Competition (CRC) Working papers 30600, University of Manchester, Institute for Development Policy and Management (IDPM).
    12. Daniele CHECCHI & Massimo FLORIO & Jorge CARRERA, 2004. "Privatization discontent and its determinants: evidence from Latin America," Departmental Working Papers 2004-23, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    13. Saul Estrin & Adeline Pelletier, 2018. "Privatization in Developing Countries: What Are the Lessons of Recent Experience?," The World Bank Research Observer, World Bank, vol. 33(1), pages 65-102.
    14. Bojanic, Antonio & Krakowski, Michael, 2003. "Regulation of the Electricity Industry in Bolivia: Its Impact on Access to the Poor, Prices and Quality," Discussion Paper Series 26201, Hamburg Institute of International Economics.
    15. Martimort, David & Straub, Stéphane, 2009. "Infrastructure privatization and changes in corruption patterns: The roots of public discontent," Journal of Development Economics, Elsevier, vol. 90(1), pages 69-84, September.
    16. Mauricio Garrón B. & Carlos Gustavo Machicado & Katherina Capra, 2003. "Privatization in Bolivia: The Impact on Firm Performance," Research Department Publications 3154, Inter-American Development Bank, Research Department.
    17. Vivien Foster & Osvaldo Irusta, 2003. "Does infrastructure reform work for the poor? A case study on the cities of La Paz and El Alto in Bolivia," Policy Research Working Paper Series 3177, The World Bank.
    18. Clive Harris, 2003. "Private Participation in Infrastructure in Developing Countries : Trends, Impacts, and Policy Lessons," World Bank Publications - Books, The World Bank Group, number 15124, April.

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    Keywords

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    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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