Water, Politics and Money: A Reality Check on Privatization by Manuel Schiffler

By Manuel Schiffler

This booklet finds all which may very likely occur while a personal corporation takes over an area water provide method, either the great and the undesirable. sponsored by way of actual existence tales of water privatization in motion, writer Manuel Schiffler offers a nuanced photograph freed from spin or worry mongering.

Inside, readers will discover a unique research of the a number of kinds of water privatization, from the outright sale of businesses to numerous different types of public-private partnerships. After masking their respective strengths and weaknesses, it then compares them to only publicly controlled water utilities.

The booklet examines the privatization and the general public administration of water and sewer utilities in twelve international locations: the U.S., the uk, France, Germany, the Philippines, Cambodia, Egypt, Jordan, Uganda, Bolivia, Argentina and Cuba. Readers will come to appreciate how and why a few utilities failed whereas others succeeded, together with a few that considerably elevated entry, grew to become extra effective and stronger carrier caliber even within the poorest international locations of the world.

It is common inner most corporation taking up a neighborhood water provide method factors either worry and fear for shoppers. using good empirical proof, this e-book argues that who manages the process is simply part the tale. relatively, it's the company tradition of the utilities and the political tradition of the place they function that usually determines functionality and the way good a neighborhood is served.

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Extra info for Water, Politics and Money: A Reality Check on Privatization

Sample text

Ironically, for some users, the bill increased because, in the first 2 months of operations, Aguas del Tunari’s water supply increased, a fact that got completely lost in the fray. What counts in the short-term in politics is not reality, but perception. When the tariff increase came into effect on the first day of the new millennium, a perfect storm was about to be unleashed. The “Water War” In January, protests against the water services law spread from the rural areas to the city, igniting a cycle of more vigorous protest and repression.

Tourism was initially restricted to enclave resorts, built with the help of private foreign investors. One of these investors was the Spanish firm Martinon, based in the Canary Islands, which helped to develop the resort Varadero. To build and operate the water supply system for the tourist resort, Martinon had teamed up with the private water company Canaragua, the Aguas de Barcelona subsidiary that ran the water supply on the Canary Islands. Havana Goes Private Impressed by the ability of the private sector to deliver, in 1997, the Cuban government quietly asked the two companies to help in modernizing the water supply for the three worst-affected municipalities in the Havana metropolitan area.

Most analyses of water privatization focus on access, quality and tariffs. Some downplay or neglect changes in efficiency or fiscal impact. Few authors emphasize changes in corporate governance. Ideally, all six above questions should be asked to truly assess the impact of a utility turnaround. There is not a single case where there were improvements on all six counts. A key dilemma with water supply and sanitation investments in most developing countries is that they do have a high benefit to society, but a negative financial rate of return because of low tariffs.

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