Publication: Infrastructure Privatization and Regulation : Promises and Perils
Date
2005-03-01
ISSN
Published
2005-03-01
Author(s)
Kessides, Ioannis N.
Abstract
Infrastructure is crucial for generating
growth, alleviating poverty, and increasing international
competitiveness. For much of the twentieth century and in
most countries, the network utilities that delivered
infrastructure services such as electricity, natural gas,
telecommunications, railroads, and water supply were
vertically and horizontally integrated state monopolies. But
this approach often resulted in extremely weak services,
especially in developing and transition economies and
especially for poor people. Common problems included low
productivity, high costs, bad quality, insufficient revenue,
and shortfalls in investment. Over the past two decades many
countries have implemented far-reaching institutional
reforms restructuring, privatizing, and establishing new
approaches to regulation. This article identifies the
challenges involved in this massive policy redirection
within the historical, economic, and institutional context
of developing and transition economies. It also reviews the
outcomes of these policy changes, including their
distributional consequences especially for poor households
and other disadvantaged groups. Drawing on a range of
international experiences and empirical studies, it
recommends directions for future reforms and research to
improve infrastructure performance.
Citation
“Kessides, Ioannis N.. 2005. Infrastructure Privatization and Regulation : Promises and Perils. World Bank Research Observer. © Oxford University Press on behalf of the World Bank. http://openknowledge.worldbank.org/handle/10986/16404 License: CC BY-NC-ND 3.0 IGO.”
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