Universal(ly Bad) Service : Providing Infrastructure Services to Rural and Poor Urban Consumers
Until recently, utility services
(telecommunications, power, water, and gas) throughout the
world were provided by large, usually state-owned,
monopolies. However, encouraged by technological change,
regulatory innovation, and pressure from international
organizations, many developing countries are privatizing
state-owned companies and introducing competition. Some
observers worry that even if reforms improve efficiency,
they might compromise an important public policy
goal-ensuring "universal access" for low-income
and rural households. The authors review the motivation for
universal service, methods used to try to achieve it under
monopoly service provision, how reforms might affect these
approaches, and the theoretical and empirical evidence of
the impact of reform on these consumers. Next, using
household data from around the world, they investigate
empirically the historical performance of public monopolies
in meeting universal service obligations and the impact of
reform. The results show the massive failure of state
monopolies to provide service to poor and rural households
everywhere except Eastern Europe. Moreover, while the data
are limited, the evidence suggests that reforms have not
harmed poor and rural consumers, and in many cases have
improved their access to utility services. Nevertheless,
because competition undermines traditional methods of
funding universal service objectives (cross-subsidies), the
authors also review mechanisms that could finance these
objectives without compromising the benefits of reforms.
Saved in:
Bibliographic Details
Main Authors: |
Clarke, George R. G.,
Wallsten, Scott J. |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2002-07
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Subjects: | ASSETS,
AUCTIONS,
CASH TRANSFERS,
CHILD HEALTH,
CLEAN WATER,
CLINICS,
COMMUNICABLE DISEASES,
COMPETITION POLICY,
CONNECTION FEES,
CONSUMERS,
CONSUMPTION LEVELS,
CREAM SKIMMING,
CROSS SUBSIDIES,
CROSS-SUBSIDIES,
CUBIC METER,
CUBIC METER OF WATER,
CUBIC METERS,
DEVELOPED COUNTRIES,
DEVELOPMENT STRATEGIES,
DEVELOPMENT STRATEGY,
ECONOMICS,
ECONOMISTS,
EMPIRICAL ANALYSIS,
EMPIRICAL EVIDENCE,
EQUILIBRIUM,
EXTERNALITIES,
EXTREME POVERTY,
HEALTH CARE,
HEALTH OUTCOMES,
HOUSEHOLDS,
HOUSING,
INCOME,
INCOME GROUPS,
INCOME LEVELS,
INEFFICIENCY,
INVESTMENT DECISIONS,
LAWS,
LEGISLATION,
LOW INCOME,
LOW-INCOME COUNTRIES,
LOW-INCOME HOUSEHOLDS,
MARGINAL COST,
MERIT GOOD,
MONOPOLIES,
MONOPOLY,
MUNICIPALITIES,
NATIONAL WATER SUPPLY,
NETWORK EXTERNALITIES,
NORMAL GOOD,
PER CAPITA INCOME,
POLICY RESEARCH,
POSITIVE EXTERNALITIES,
PRICE ELASTICITIES,
PRIVATE MARGINAL COST,
PRIVATIZATION,
PUBLIC HEALTH,
QUALITY STANDARDS,
RESIDENTIAL CUSTOMERS,
SANITATION SERVICES,
SERVICE PROVIDERS,
SERVICE PROVISION,
SEWAGE,
SMALL TOWNS,
TAX REVENUES,
TAXATION,
TECHNOLOGICAL CHANGE,
TELECOMMUNICATIONS,
TELEPHONE COVERAGE,
TOWNS,
TRANSITION ECONOMIES,
UTILITIES,
UTILITY SERVICES,
WATER COMPANIES,
WATER CONSUMPTION,
WATER SECTOR,
WATER SERVICES,
WATER SUPPLY,
WATER SUPPLY SERVICES,
WATER USE,
WATER UTILITIES,
WEALTH,
WELLS SERVICE DELIVERY,
INFRASTRUCTURE,
RURAL COMMUNITIES,
URBAN POVERTY,
UTILITY FUNCTIONS,
STATE-OWNED ENTERPRISES,
REGULATORY STRUCTURE,
PRIVATIZATION POLICY,
COMPETITIVENESS,
PUBLIC SERVICE DELIVERY,
ACCESSIBLE SERVICES,
LOW-INCOME PEOPLE,
CONSUMER SATISFACTION,
HOUSEHOLD DATA, |
Online Access: | http://documents.worldbank.org/curated/en/2002/07/1971352/universally-bad-service-providing-infrastructure-services-rural-poor-urban-consumers
https://hdl.handle.net/10986/19264
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