Does the Private Sector Deliver on its Promises? Evidence from a Global Study in Water and Electricity

Abstract

Is private operation better than public when it comes to utilities; a recent global study funded by the World Bank and Public-Private Infrastructure Advisory Facility (PPIAF) examines the effect of private sector participation in electricity distribution and water and sanitation services. Using a data set of more than 1,200 utilities in 71 developing and transition economies, the study finds that privately operated utilities convincingly outperform state-run ones in operational performance and labor productivity.