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Privatisation and Renationalisation: What Went Wrong in Bolivia’s Water Sector?

Author

Listed:
  • Degol Hailu

    (IPC-IG)

  • Rafael Guerreiro Osorio

    (IPC-IG)

  • Raquel Tsukada

    (IPC-IG)

Abstract

This paper investigates the impact of water service privatization in Bolivia. It compares the performance of cities in which the service was privatized (La Paz and El Alto) with a city in which it is managed as a cooperative (Santa Cruz de la Sierra) and one where the service is publicly provided (Cochabamba). We find that access to water by low-income consumers increased under private provision. However, the concessionaire failed to meet the targets stipulated in the contract. The tariff increases required for full cost recovery eventually led to public outrage that forced the government to renationalize the company.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Degol Hailu & Rafael Guerreiro Osorio & Raquel Tsukada, 2009. "Privatisation and Renationalisation: What Went Wrong in Bolivia’s Water Sector?," Working Papers 58, International Policy Centre for Inclusive Growth.
    • Handle: RePEc:ipc:wpaper:58
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Post, Alison E. & Murillo, María Victoria, 2016. "How Investor Portfolios Shape Regulatory Outcomes: Privatized Infrastructure After Crises," World Development, Elsevier, vol. 77(C), pages 328-345.
    2. repec:hal:journl:hal-01023795 is not listed on IDEAS
    3. Estrin, Saul & Pelletier, Adeline, 2018. "Privatization in developing countries: what are the lessons of recent experience?," LSE Research Online Documents on Economics 87348, London School of Economics and Political Science, LSE Library.
    4. Wutich, Amber & Beresford, Melissa & Carvajal, Cinthia, 2016. "Can Informal Water Vendors Deliver on the Promise of A Human Right to Water? Results From Cochabamba, Bolivia," World Development, Elsevier, vol. 79(C), pages 14-24.
    5. Estrin, Saul & Pelletier, Adeline, 2016. "Privatisation in Developing Countries: What Are the Lessons of Recent Experience?," IZA Discussion Papers 10297, Institute of Labor Economics (IZA).
    6. repec:hal:journl:dumas-00811476 is not listed on IDEAS
    7. Ronn Pineo, 2016. "Progress in Bolivia: Declining the United States Influence and the Victories of Evo Morales," Journal of Developing Societies, , vol. 32(4), pages 421-453, December.
    8. Cairns, Maryann R., 2018. "Metering water: Analyzing the concurrent pressures of conservation, sustainability, health impact, and equity in use," World Development, Elsevier, vol. 110(C), pages 411-421.
    9. Ouda, Omar K.M. & Al-Waked, Rafat F. & Alshehri, Abdulrahman A., 2014. "Privatization of water-supply services in Saudi Arabia: A unique experience," Utilities Policy, Elsevier, vol. 31(C), pages 107-113.
    10. Swann Bommier & Cécile Renouard, 2014. "On Equity in India's Water Supply Public-Private Partnerships," Working Papers hal-01023795, HAL.
    11. Massimiliano Agovino & Massimiliano Cerciello & Antonio Garofalo & Loris Landriani & Luigi Lepore, 2021. "Corporate governance and sustainability in water utilities. The effects of decorporatisation in the city of Naples, Italy," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 874-890, February.
    12. Alper Demirdogen, 2023. "Before Privatization There was Its Impact: Sugar Factories in Turkey," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(2), pages 199-218, March.
    13. Bommier, Swann & Renouard, Cécile, 2014. "On Equity in India's Water Supply Public-Private Partnerships," ESSEC Working Papers WP1411, ESSEC Research Center, ESSEC Business School.
    14. Lazzarini,Sergio G., 2022. "The Right Privatization," Cambridge Books, Cambridge University Press, number 9781316519714, January.
    15. Gabriella Carolini & Daniel Gallagher & Isadora Cruxên, 2018. "The promise of proximity: The politics of knowledge and learning in South–South cooperation between water operators," Environment and Planning C, , vol. 36(7), pages 1157-1175, November.
    16. Saiani, Carlos & Azevedo, Paulo Furquim de, 2018. "Is privatization of sanitation services good for health?," Utilities Policy, Elsevier, vol. 52(C), pages 27-36.
    17. James Alm, 2015. "Financing Urban Infrastructure: Knowns, Unknowns, And A Way Forward," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 230-262, April.

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