An Empirical Analysis of State and Private-Sector Provision of Water Services in Africa |
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| Authors: | Kirkpatrick Colin; Parker David; Zhang Yin-Fang |
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| Institution: | Colin Kirkpatrick is the Hallsworth Professor of Development Economics at the Institute for Development Policy and Management, School of Environment and Development, the University of Manchester, UK; his email address is colin.kirkpatrick{at}man.ac.uk. |
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| Abstract: | Under pressure from donor agencies and international financialinstitutions such as the World Bank, some developing countrieshave experimented with the privatization of water services.This article reviews the econometric evidence on the effectsof water privatization in developing economies and presentsnew results using statistical data envelopment analysis andstochastic cost frontier techniques and data from Africa. Theanalysis fails to show evidence of better performance by privateutilities than by state-owned utilities. Among the reasons whywater privatization could prove problematic in lower-incomeeconomies are the technology of water provision and the natureof the product, transaction costs, and regulatory weaknesses. |
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