Body of Knowledge on Infrastructure Regulation
1. General Concepts >> References >> B. Rationale for Reform of Infrastructure Markets >>

B. Rationale for reform of utility markets (e.g. fiscal constraints, technological change, policy innovations, incentives for efficiency) and the elements of market reform, including private participation, liberalization, and regulation

Core References

  • Private Participation in Infrastructure in Developing Countries: Trends, Impacts, and Policy Lessons PDF Available Washington, D.C.: World Bank, 2003. Harris, Clive

    Explains the rise and fall of both public sector monopolies and private participation in infrastructure. Describes when private sector participation improves results and how important regulatory issues, such as pricing and competition, need to be addressed if private participation in infrastructure is to succeed.

  • Back to the Future: The Potential in Infrastructure Privatization PDF Available Note no. 30 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1994. Klein, Michael, and Neil Roger

    Describes the cycles of private and public provision of infrastructure. Examines role of regulation in providing stability to the sectors.

  • Regulation and Development Cambridge: Cambridge University Press, 2005. Laffont, Jean-Jacques

    Explains that the proper mode of provision of utility services can vary over time and depends on a country’s political, cultural, and institutional features. Examines developing country context in depth.

Sectoral References

ELECTRICITY
  • Making Competition Work in Electricity New York: Wiley & Sons, 2002. Hunt, Sally

    Describes reasons for restructuring electricity markets and the economics of the alternative industry structures.

GAS
TELECOMMUNICATIONS
  • ICT Regulation Toolkit Washington, D.C.: infoDev and the International Telecommunications Union, 2007.

    Provides an overview of reasons for regulation of private telecommunications operators.

  • What the Transformation of Telecom Markets Means for Regulation PDF Available Note no. 121 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1997. Smith, Peter

    Examines the implications of dynamics of telecommunications technologies and markets for regulation.

TRANSPORTATION
  • Urban Bus Toolkit: Tools and Options for Reforming Urban Bus Systems PDF Available Public-Private Infrastructure Advisory Facility, World Bank. CPCS Transcom

    Toolkit designed to help government officials and policy makers evaluate existing and alternative urban bus systems in developing and transitional countries. Offers practical advice to enact fundamental system reforms.

  • Port Reform Toolkit, 2nd Edition PDF Available Public-Private Infrastructure Advisory Facility, World Bank. World Bank Transport Group

    Provides policymakers and practitioners guidance for undertaking sustainable and well-considered reforms of public institutions that provide, direct, and regulate port services in developing countries.

  • Best Methods of Railway Restructuring and Privatization PDF Available CFS Discussion Paper Series, number 11, World Bank, Washington, D.C., 1995. Kopicki, Ron and Louis Thompson

    Provides context and guidance to restructure the railways. Addresses distinct structural issues associated with rail enterprise reform, design of specialized intermediary institutions that carry out much of the work of railway restructuring, and management techniques that are appropriately adapted to railway reform and restructuring. Focuses on "best" methods built on seven case studies of recent railway restructuring efforts: Japan National Railway, New Zealand Railways, Argentina Railways, Swedish Railways, British Railways, and railroads in the United States, and Canadian Railways.

  • Privatization and Regulation of Transport Infrastructure: Guidelines for Policymakers and Regulators PDF Available World Bank Institute Development Study, World Bank, Washington, D.C., 2000. Estache, Antonio

    Addresses liberalization of transport policies and the role played by private operators and investors in transport infrastructure. Provides an overview of why economic regulation is important and examines four subsectors: airports, ports, railways, and roads. Discusses for each subsector: relevance from the viewpoint of a regulator; main privatization and regulation trends; price and quality regulation issues that characterize the sector, and performance indicators that the sector's regulators should be able to rely on to be effective in their jobs.

WATER
  • Regulating Water Services: Sending the Right Signals to Utilities in Chile PDF Available Note no. 286. March 2005. Bitran, Gabriel, and Pamela Arellano

    Examines how during the 1980s and 1990s the Chilean water and sanitation sector underwent deep reforms so that private capital could finance the huge investments needed to achieve universal service. Investigates key features of the new regulatory scheme that contributed to the sustainability of the reforms: a phased approach, an efficient pricing policy and methodology, and expert panels to deal with conflict resolution.

  • Government Opportunism and the Provision of Water in Spilled Water: Institutional Commitment in the Provision of Water Services, edited by William Savedoff and Pablo Spiller. Washington, D.C.: Inter-American Development Bank, 1999. Savedoff, William, and Pablo Spiller

    Describes roles that regulation may play in decreasing government opportunism for both private operators and public operators.

Other References

Key Words

Market Reform, Competition, Regulation, Franchising, Cross-subsidization, Privatization.