- Elgar original reference
Edited by Susan Rose-Ackerman and Tina Søreide
Chapter 6: Public versus Private Governance and Performance: Evidence from Public Utility Service Provision
6 Public versus private governance and performance: evidence from public utility service provision1 Maria Vagliasindi 1. Introduction In the public utility sector the control of corruption should never be an end in itself. Rather, programs to limit corruption and improve governance must focus on their connection to improved service provision. Accordingly, governance reform should not concentrate only on compliance with laws and rules or on initiatives to detect and punish corruption. Rather, efforts to strengthen governance should aim to meet customers’ legitimate demands for better performance and for more costeffective infrastructure service delivery. Governance arrangements need to motivate politicians, bureaucrats, and utility managers to provide the services customers need in ways that reflect the actual costs of their provision. Corruption frequently inflates the costs of utilities. Thus, governance systems that push the reported costs of such services closer to real economic opportunity costs will help to reduce the magnitude and incidence of corruption and act as a powerful tool to improve performance. State-owned enterprises (SOEs) dominate the market in such areas as electricity, gas, water, and railways. Despite the push for privatization and private participation from 1990 to the present, a large proportion of utility services are still delivered by SOEs in the developing regions of the world. An extensive body of literature highlights the successes and failures of private sector participation in infrastructure, but much recent research focuses on the successes and failures of the public sector (Gómez-Ibáñez, 2007 and Vagliasindi, 2011). Many governance controls were tailored...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.