Utilities Reforms and Corruption in Developing Countries

30 Pages Posted: 20 Apr 2016

See all articles by Antonio Estache

Antonio Estache

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Ana Goicoechea

World Bank

Lourdes Trujillo

Departamento de Analisis Economico Aplicado; University College of London (UCL)

Date Written: December 2006

Abstract

This paper shows empirically that privatization in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. The results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utility services.

Keywords: Infrastructure Regulation, Energy Production and Transportation, Town Water Supply and Sanitation, Social Accountability, ICT Policy and Strategies

Suggested Citation

Estache, Antonio and Goicoechea, Ana and Trujillo-Castellano, Lourdes, Utilities Reforms and Corruption in Developing Countries (December 2006). World Bank Policy Research Working Paper No. 4081. Available at SSRN: https://ssrn.com/abstract=950451

Antonio Estache (Contact Author)

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
32 (0)2 6503838 (Phone)

Ana Goicoechea

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Lourdes Trujillo-Castellano

Departamento de Analisis Economico Aplicado ( email )

Universidad de Las Palmas de Gran Canaria
Campus de Tafira
Las Palmas de Gran Canaria, Las Palmas 35017
Spain

University College of London (UCL)

Chadwick Building
Gower Street
London, London WC1E 6
United Kingdom

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