Infrastructure Privatization and Regulation : Promises and Perils

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.

Bibliographic Details

Main Author:	Kessides, Ioannis N.
Format:	Journal Article biblioteca
Language:	English en_US
Published:	Oxford University Press on behalf of the World Bank 2005-03-01
Subjects:	ACCOUNTABILITY, ACCOUNTING, ADVANCED ECONOMIES, AIRPORT, AUDITING, AUTONOMY, BANKING SECTOR, BANKRUPTCY, BUDGET DEFICITS, CIVIL SERVICE, CODES OF CONDUCT, COLLUSION, COMPARATIVE ADVANTAGE, COMPETITIVE MARKET, COMPETITIVE MARKETS, COMPETITIVENESS, CONSUMERS, CROSS SUBSIDIES, DEBT, DEREGULATION, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DISTRIBUTIONAL EQUITY, ECONOMIC ANALYSIS, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC IMPLICATIONS, ECONOMIC REFORM, ECONOMIC REFORMS, ECONOMIC SHOCKS, ECONOMIC THEORY, ELECTRICITY, EMPLOYMENT, EXCESS DEMAND, EXTERNALITIES, FINANCIAL CONSTRAINTS, FINANCIAL CRISES, FINANCIAL INSTITUTIONS, FINANCIAL PERFORMANCE, FINANCING OF INFRASTRUCTURE, FIXED ASSETS, FOREIGN INVESTMENT, FREE MARKETS, FREIGHT, FREIGHT TRAFFIC, GLOBAL MARKET, GOVERNMENT INTERVENTION, GROSS DOMESTIC PRODUCT, HORIZONTAL INTEGRATION, INCOME, INCOME DISTRIBUTION, INCOME GROUPS, INCOME LEVELS, INCOME TAXES, INCOMES, INDUSTRIAL COUNTRIES, INDUSTRIAL ECONOMIES, INEFFICIENCY, INFLATION, INFLATION TAX, INFLATION TAXES, INFORMATION ASYMMETRIES, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INFRASTRUCTURE PRIVATIZATION, INFRASTRUCTURE PROJECTS, INFRASTRUCTURE REFORM, INFRASTRUCTURE REGULATION, INSTITUTION BUILDING, INSTITUTIONAL CAPACITY, JURISDICTIONS, LEGISLATION, LIBERALIZATION, LOCAL GOVERNMENT, LONG-DISTANCE, LOW-INCOME COUNTRIES, MANDATES, MARGINAL COSTS, MARKET ECONOMY, MARKET SHARE, MARKET SHARES, MIDDLE-INCOME COUNTRIES, MINISTRY OF TRANSPORT, MONOPOLIES, MONOPOLY, NATURAL MONOPOLIES, NATURAL MONOPOLY, NET ASSETS, OPERATING EFFICIENCY, OUTPUT, PENALTIES, PORT AUTHORITY, PORT INFRASTRUCTURE, PORTS, POST OFFICES, POTENTIAL INVESTORS, POWER OUTAGES, PRICE CHANGES, PRICE INCREASES, PRICE RISKS, PRIVATE CAPITAL, PRIVATE ENTITIES, PRIVATE INFRASTRUCTURE, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRIVATIZATIONS, PRODUCTIVITY, PROFITABILITY, PROPERTY RIGHTS, PUBLIC, PUBLIC DEFICITS, PUBLIC ENTERPRISES, PUBLIC FINANCES, PUBLIC FUNDS, PUBLIC GOOD, PUBLIC INFRASTRUCTURE, PUBLIC POLICY, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC UTILITIES, PUBLIC UTILITY, RAIL, RAIL INDUSTRY, RAIL SYSTEMS, RAIL TRACK, RAIL USERS, RAILROAD, RAILROADS, RAILWAY, RAILWAYS, RATE OF RETURN, REFORM PROGRAM, REGULATOR, REGULATORS, REGULATORY AGENCIES, REGULATORY AGENCY, REGULATORY AUTHORITY, REGULATORY BODIES, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REGULATORY OVERSIGHT, REGULATORY REGIMES, REGULATORY SYSTEM, REGULATORY SYSTEMS, REORGANIZATION, RETURN ON EQUITY, REVENUE ADEQUACY, RISK PREMIUMS, ROUTE, SAFETY, SAFETY NETS, SANITATION, SAVINGS, SCANDALS, SEWAGE, SOCIAL WELFARE, STATE ENTERPRISES, STOCK MARKET, STOCK MARKET COLLAPSES, TAX, TAX REVENUE, TAX REVENUES, TAX SYSTEM, TAX SYSTEMS, TAXATION, TECHNICAL ASSISTANCE, TECHNOLOGICAL CHANGES, TELECOMMUNICATIONS, TELECOMMUNICATIONS REFORM, TELECOMMUNICATIONS REGULATION, TELEPHONE SERVICES, TRAFFIC GROWTH, TRANSACTION COSTS, TRANSITION ECONOMIES, TRANSITION ECONOMY, TRANSPARENCY, TRANSPORT, TRANSPORT COSTS, TRANSPORT INFRASTRUCTURE, TRANSPORT MODES, TRANSPORT NETWORK, TRANSPORTATION, TRUE, VALUE ADDED, VERTICAL INTEGRATION, WATER SUPPLY, WHOLESALE PRICES,
Online Access:	http://documents.worldbank.org/curated/en/2005/03/17591908/infrastructure-privatization-regulation-promises-perils https://hdl.handle.net/10986/16404
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