Strategic Considerations for Improving Water Sector Performance

For many years there was wide optimism that the private sector would resolve much of the performance problems of water utilities and mobilize scarce financing to sustain growth and expand coverage. While private sector involvement has indeed increased in the last decade, it has substantially fallen short of expectations that it would help turn around this sector. In essence, private financing has only accounted for less than 5 percent of the total investment in water supply and sanitation over the last 20 years. At the same time, some public utilities have become more autonomous and accountable. Some have improved their performance without involving the private sector and working totally within a public environment of key stakeholders and funding sources. Moreover, in many countries, there has also been a move to decentralize decision making down to the lowest practical level and place greater policy and oversight responsibilities on municipal governments. Successful public utilitie...

World Bank Technical Papers, 1999

The water sector is undergoing remarkable changes in recent years. While past achievements were associated mainly with investment in new physical structures, recent developments in the water sector is associated to a greater extent with improved management and institutional changes. Although both the nature and direction of these institutional changes vary by country-specific economic, political/cultural, and resource realities, there are clearly identifiable trends and patterns. The 1993 World Bank Water Resources Management Policy calls for a comprehensive water resources framework that recognizes appropriate management of water resources, that rely also on sound institutions. World Bank portfolio includes now water projects with massive components of institutional reforms, at all water sub-sectors and management levels. As such, World Bank's projects are part of the trend of change identified at international level. Evaluation of the institutional changes that occur and the consequential performance of the water sector are not straightforward. While country-specific studies describing institutional changes in the water sector are common, comparative studies evaluating the institutional underpinnings of water sector performance with a crosscountry perspective are rather rare. Crosscountry studies can help not only in understanding the major water sector challenges but also in delineating the contour of ongoing institutional responses, under various country-specific conditions. This report suggests a new methodology to shed light on the process of institutionperformance interaction. The report demonstrates the use of the methodology by applying it to an extensive crosscountry data set, and by deriving policy guidance based on the results. We hope that this report will stimulate thought and debate about methodologies and strategies to be used in order to evaluate institutional change and institution-performance interactions in the water sector.

Achieving long-lasting water and food security needs to be based on a solid foundation, represented by governance institutions that are able to ensure a fair framework for development. During the past three decades Latin America and Caribbean (LAC) has undergone significant institutional water reforms triggered by a number of factors, among which are the demands from civil society for more inclusive, sustainable, efficient and effective water governance, as well as the influence of international organizations promoting the introduction of Integrated Water Resources (IWRM) and other paradigms in LAC water governance structures.

2012

This chapter aims to provide some answers using both theoretical considerations as well as practical illustrations at the sub sectoral levels of urban water supply and irrigation as well as at the water sector as a whole. It examines different possibilities to deal with governance issues appropriately using several criteria, particularly feasibility, performance efficiency, transparency of the process, and accountability of decision makers. It also derives certain guidelines and principles that can be used to enhance the effectiveness of water governance in sub sectoral and the general water sector context.

8th Seminar of Postgraduate Students, Young Scientists and Researchers, Prague, Czech Republic , 2006

2013

The views expressed in this document, which has been reproduced without formal editing, are those of the author and do not necessarily reflect the views of the Organization.

Journal of Contemporary Water Research & Education, 2000

This paper provides an overview of privatization and competition in the water industry from a public policy vantage point. In particular, it contrasts the contract operations model with the private ownership with regulation model. Advantages and disadvantages of each model are summarized. The monopolistic nature of the water industry and the potential need for structured competition and economic regulation are discussed. STRUCTURE AND COMPETITION The U.S. water industry is dominated by public ownership. Publicly owned systems (municipalities, counties, districts, and authorities) account for about 43 percent of all community water systems, but about 85 percent of population served, water sales, and revenues from sales (U.S. Environmental Protection Agency, 1997). Many of the nation’s numerous small utilities are privately owned, but several large investor-owned utilities have a presence in the industry’s composition. The state public utility commissions regulate only about 20 percen...

Water Science and Technology, 2005

Most public utilities in Africa are operating at very low efficiency levels. This is mainly a result of poor governance leading to a downward spiral in terms of service to customers. Nearly in every case, studies have shown that the root cause of these problems is not necessarily lack of investment but poor choices with regard to sector policies, institutional and regulatory frameworks. The paper will seek to show the need for effective regulatory framework that promotes Good Governance of public utilities leading to their efficient performance. The paper will draw lessons from the Australian water services regulatory framework and apply it to the African water situation. The Australian regulatory framework has been instrumental in promoting Good Governance in the public utilities hence being run efficiently. It is recognised that the African Water and Sanitation Sector where most public utilities are not operating under a clearly defined regulatory framework can learn a lot from the Australian experience.

Water Policy, 2010

This paper provides an overview of the reform of water institutions in developing countries in the last three decades focusing on the 'what, why and how' of institutional reform, and outlines their implications for policy and research. The review covers four areas: (1) water rights and river basin institutions; (2) decentralized irrigation management; (3) private sector participation in urban water supply; and (4) regulation of water infrastructure. The review suggests that (a) the theoretical rationale for reforms is mostly grounded on arguments for efficiency, effectiveness and fiscal sustainability with little considerations for equity; (b) models of institutional design varies from incremental to comprehensive; and (c) implementation experiences among countries are mixed, given the conditional nature of institutional reform; and (d) changes in elite perception holds the key to reform.

This is the outline of a publication that I would like to develop if funds would be made available