Does Society Win or Lose as a Result of Privatization? The Case of Water Sector Privatization in Colombia

Abstract

This paper evaluates the impact of water sector privatization in Colombia on access, price and water quality, as well as health outcomes using differences-in-differences methodology. The main findings of the impact of water privatization are: (i) an improvement in the quality of water and an increase in the frequency of the service in privatized urban municipalities for the lower quintiles; (ii) a positive effect on health outcomes in both urban and rural areas; (iii) a negative effect on payment for the lower quintiles; and (iv) strong negative effects on access to water in rural areas. Some of these effects appear in municipalities with better technical capacity. Copyright (c) The London School of Economics and Political Science 2008.

¿es La Privatización La Solución a Los Problemas De Ineficiencia De Las Empresas Públicas?: Revisión De La Literatura

“…Tal como se planteó, frente a la abundante literatura internacional que analiza el efecto de las privatizaciones, es sorprendente ver que existen muy pocos estudios que evalúen ese efecto en las empresas colombianas (Barrera-osorio et al, 2009;Collazos & ochoa, 2005;Pombo & Ramírez, 2003). Barrera-osorio et al, (2009) estudiaron el efecto privatizador en el sector del agua en Colombia tuvieron en cuenta el acceso, el precio y la calidad de agua.…”

“…Barrera-osorio et al, (2009) estudiaron el efecto privatizador en el sector del agua en Colombia tuvieron en cuenta el acceso, el precio y la calidad de agua. Los resultados encontrados mostraron efectos positivos de la privatización puesto que, en las áreas urbanas, se aumentó el acceso al servicio y, así mismo, mejoró sustancialmente la calidad y el aspecto del agua.…”

Public-sector outsourcing

“…Privatization of water supplies in Colombia has led to improved water quality and better health outcomes [9]. Privatizations in Argentina and in Manila, the Philippines, are also generally considered success stories.…”

Perceptions of Nongovernmental Organization (NGO) Staff about Water Privatization in Developing Countries

“…Most of the studies have concentrated on just a few aspects of water privatization such as operational efciency, corruption levels, transparency, and impact of privatization on vulnerable populations (Casarin, Delno, & Delno, 2007;Loftus & McDonald, 2001). Moreover, scholars who studied different aspects of water privatization used interviews with the public or water users to draw their conclusions (Barrera-Osorio et al, 2009;Clarke et al 2009;Galiani et al 2005;Mustafa and Reeder 2009;Spronk, 2007;Trawick 2003) although some have sought perspectives from water industry employees (Lobina and Hall 2007;Nissan et al 2004), and government ofcials and stakeholders (Kirkpatrick et al 2006;Wu and Malaluan 2008). Their ndings have been mixed, underscoring the complex nature of private sector involvement in potable water delivery.…”

“…Research on water privatization have largely focused on their failures and successes, as well as what factors inuence their outcomes (Spronk, 2007;Wu & Malaluan, 2008;Barrera-Osorio, Olivera, & Ospino, 2009;Mustafa & Reeder, 2009). Most of the studies have concentrated on just a few aspects of water privatization such as operational efciency, corruption levels, transparency, and impact of privatization on vulnerable populations (Casarin, Delno, & Delno, 2007;Loftus & McDonald, 2001).…”