The Effects Of Private Participation On Infrastructure

2024 Words9 Pages
This paper examines the effects of private participation in infrastructure (PPI) in the developing world on the provision of infrastructure services. This process is colloquially referred to as privatization and involves the transfer of previously state-owned and operated infrastructure assets to operation and sometimes ownership by the private sector. Analysis of more than two decades worth of evidence showed that, in terms of the impact on infrastructure provision, PPI tends to provide positive gains in efficiency, quality of and access to infrastructure services. With regard to realizing the benefits of privatization, effective regulation and the introduction of competition are crucial. Notably, positive impacts from PPI are not seen…show more content…
On the other hand I was familiar with the arguments of the proponents of privatization, who argue that private companies are better positioned than the government to provide most services in an efficient manner. In the face of this debate I wanted to explore the evidence in an attempt to reach some fact-based conclusions about the impact of the privatization of infrastructure service on their delivery. 3. The Research Process Thankfully PPI in the developing world has been ongoing for over two decades at this point, so there is a substantial body of academic literature on the impact of infrastructure privatization for specific cases and for each infrastructure sector. Research for this paper was mainly conducted through Georgetown Library resources and Google Scholar. Case studies for infrastructure privatization projects are a plenty and I had to sift through them to identify more comprehensive reports that looked at a set of case studies or a specific sector. Most comprehensive reports on infrastructure privatization in the developing world date from the early 2000s, though I was able to find two recent comprehensive assessments of the evidence that provided me fresh overviews of the current knowledge base and leads for further sources. 4. Introduction Across the developing world, private participation in infrastructure accounts for less than 20% of infrastructure
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