Publication: Granting and Renegotiating Infrastructure Concessions : Doing it Right
Date
2004-01
ISSN
Published
2004-01
Author(s)
Abstract
In most developing and industrial
countries, infrastructure services have traditionally been
provided by government enterprises, but in developing
countries at least, these enterprises have often proven to
be inefficient, unable to provide much-needed investments,
and manipulated to achieve political objectives. By
contrast, many studies have shown that over the past 30
years, private (or privatized) enterprises in developing
countries have, on average, delivered superior performance
and needed investments. Explanations differ on why this
discrepancy exists. Private enterprises are driven by a
desire for profits and may have more professional know-how
in management, operating procedures, and use of appropriate
technology. But perhaps the most important reason for their
stronger performance is that privatization makes intervening
in enterprise operations difficult for governments and
politicians, so government manipulation is less likely.
However, the issue, in general, has been how to ensure that
the improved performance and efficiency gains are passed
through to the users through lower tariffs and increased
coverage, while allowing firms to earn a fair rate of return
on their investments.
Citation
“Guasch, J. Luis. 2004. Granting and Renegotiating Infrastructure Concessions : Doing it Right. WBI Development Studies;. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/15024 License: CC BY 3.0 IGO.”