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Water and sanitation governance between austerity and financialization

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  • Almeida, Renan P.
  • Hungaro, Lucas

Abstract

Drawing from quantitative and qualitative research, this paper explores the case of COPASA – a mixed-capital regional water and sanitation utility in Brazil facing a context of austerity and privatization. We find that the state government, shrinking in a fiscal crisis, opted to increase extraordinary dividends payouts to raise its revenues. Given the mixed company mode of privatization, the private shareholders endorsed this pattern of governance, motivated by a short sight financial logic. This convergence of different interests led the utility to lower investments, failed investment plans, breaches of contracts with municipalities and making it even harder to universalize the services.

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  • Almeida, Renan P. & Hungaro, Lucas, 2021. "Water and sanitation governance between austerity and financialization," Utilities Policy, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:juipol:v:71:y:2021:i:c:s0957178721000631
    DOI: 10.1016/j.jup.2021.101229
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    1. Carvalho Solino Silva, Larissa & Teixeira, Gibran da Silva & Nobre Fernandez, Rodrigo & Halmenschlager, Vinícius, 2024. "Concessions for basic sanitation services in Southern Brazil: A generalized synthetic control analysis," Utilities Policy, Elsevier, vol. 87(C).

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