John Nellis rebuts a paper that contends that the privatisation of basic utilities has been a failure in Africa(pdf) .His reasons are that the writers:
-overestimate the ease of improving performance in state-owned firms.
-underestimate the amount of investment capital required in run-down African water and electricity sectors.
-the Policy Research Brief does not mention the promising ‘hybrid’ experiments (Athi Water) that combine local African private management with public ownership.
In summary:
the solution is not to eschew private investment,but rather find mechanisms to make it more politically acceptable,more socially responsible and more mutually beneficial.
via Sociolingo
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