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Private provision of rural infrastructure services: competing for subsidies

Author

Listed:
  • Wellenius, Bjorn
  • Foster, Vivien
  • Malmberg-Calvo, Christina

Abstract

Market-oriented reforms of infrastructure in developing countries tend to focus primarily on commercially viable services in urban areas. Nevertheless, an increasing number of countries are beginning to experiment with extending the market paradigm to infrastructure services in rural areas that are often less attractive in commercial terms. In these cases, subsidies are used to close the gap between market requirements and development needs, and are increasingly determined and allocated on a competitive basis. The authors discuss the conditions under which competition among firms for such subsidies-successfully used in the telecommunications sector in a number of middle-income countries-could also be applied to electricity, water and sanitation, and transportation services in lower-income countries.

Suggested Citation

  • Wellenius, Bjorn & Foster, Vivien & Malmberg-Calvo, Christina, 2004. "Private provision of rural infrastructure services: competing for subsidies," Policy Research Working Paper Series 3365, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3365
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    Citations

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    Cited by:

    1. Benno J. Ndulu, 2007. "Challenges of African Growth : Opportunities, Constraints, and Strategic Directions," World Bank Publications - Books, The World Bank Group, number 6656.
    2. Eduardo Nakasone & Maximo Torero, 2016. "A text message away: ICTs as a tool to improve food security," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 49-59, November.
    3. Jamasb, Tooraj, 2006. "Between the state and market: Electricity sector reform in developing countries," Utilities Policy, Elsevier, vol. 14(1), pages 14-30, March.
    4. Alberto Chong & Virgilio Galdo & Máximo Torero, 2009. "Access to Telephone Services and Household Income in Poor Rural Areas Using a Quasi‐natural Experiment for Peru," Economica, London School of Economics and Political Science, vol. 76(304), pages 623-648, October.
    5. Clemens Pizzinini & Emanuel D’Amico & Korbinian Götz & Markus Lienkamp, 2023. "Driving Sustainable Development: The Power of Vehicle-Based Services in Rural Sub-Saharan Africa," Sustainability, MDPI, vol. 15(15), pages 1-17, August.

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