How Widespread Were Private Investment and Regulatory Reform in Infrastructure Utilities During the 1990s?

Abstract

This note provides a snapshot as of 2004 of the share of countries with an "independent" regulatory agency and with at least some private sector financing of its sectoral investment needs for electricity, water and sanitation and telecoms. Among other things, it shows that:

- For respectively, electricity, water and sanitation, and telecoms, 51%, 21% and 66% of the developing countries in the sample have an "independent" regulator; i.e. an agency separate from a Ministry and from the operator.

- For respectively, electricity generation, electricity distribution, water and sanitation, and telecoms, 47%, 36%, 35% and 59% of the developing countries in the sample have at least some private sector financing.

- The shares of both agencies and private sector involvement tend to increase with income levels.

- Latin and Central America and Eastern Europe are outliers among regions as almost systematically they have among the highest shares for both indicators across sectors (except water).