On Latin America's Infrastructure Privatization and its Distributional Effects
20 Pages Posted: 14 Jul 2003
Date Written: April 30, 2003
This paper provides a brief survey of the literature on the effects of the 1990s infrastructure reforms in Latin America on income distribution. It identifies major holes in the coverage of policy issues by the academic literature, including a much needed distinction between access and affordability of infrastructure services, the need to account for the weakness of safety nets in the often difficult transitions associated with reform, the need to recognize the distortions due to the use of these sectors as tax handles by all government levels, the need to recognize the importance of effective economic regulation and the importance of political commitment to a fair distribution of reforms benefit to all segments of the population. The paper concludes with suggestions for adjustments to be made to future reform packages to minimize the risks of negative social effects.
Keywords: Infrastucture privatization, Latin America, regulation, income distribution
JEL Classification: L5, L9, I3
Suggested Citation: Suggested Citation