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
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Private Participation in Infrastructure in Developing Countries: Trends, Impacts, and Policy Lessons
Washington, D.C.: World Bank, 2003.
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.
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Back to the Future: The Potential in Infrastructure Privatization
Note no. 30 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1994.
Describes the cycles of private and public provision of infrastructure. Examines role of regulation in providing stability to the sectors.
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Regulation and Development
Cambridge: Cambridge University Press, 2005.
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
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Making Competition Work in Electricity
New York: Wiley & Sons, 2002.
Describes reasons for restructuring electricity markets and the economics of the alternative industry structures.
GAS
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Competition in the Natural Gas Industry: The emergence of spot, financial, and pipeline capacity markets
Note no. 137 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, March 1998.
Describes basic restructuring and trading arrangements in gas and pipeline markets.
TELECOMMUNICATIONS
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ICT Regulation Toolkit
Washington, D.C.: infoDev and the International Telecommunications Union, 2007.
Provides an overview of reasons for regulation of private telecommunications operators.
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What the Transformation of Telecom Markets Means for Regulation
Note no. 121 in Public Policy for the Private Sector. Washington, D.C.: World Bank Group, 1997.
Examines the implications of dynamics of telecommunications technologies and markets for regulation.
TRANSPORTATION
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Urban Bus Toolkit: Tools and Options for Reforming Urban Bus Systems
Public-Private Infrastructure Advisory Facility, World Bank.
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.
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Port Reform Toolkit, 2nd Edition
Public-Private Infrastructure Advisory Facility, World Bank.
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.
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Best Methods of Railway Restructuring and Privatization
CFS Discussion Paper Series, number 11, World Bank, Washington, D.C., 1995.
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.
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Privatization and Regulation of Transport Infrastructure: Guidelines for Policymakers and Regulators
World Bank Institute Development Study, World Bank, Washington, D.C., 2000.
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
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Regulating Water Services: Sending the Right Signals to Utilities in Chile
Note no. 286. March 2005.
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.
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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.
Describes roles that regulation may play in decreasing government opportunism for both private operators and public operators.
Other References
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An Empirical Analysis of Competition, Privatization, and Regulation in Telecommunications Markets in Africa and Latin America
Policy Research Working Paper 2136. Washington, D.C.: World Bank, May 1999.
Examines the effects of telecommunications reforms in Africa and Latin America. Finds that privatization and an independent regulator together improve sector performance. Privatization alone yields few benefits and has some negative effects. Competition increases per capita number of mainlines, payphones, and connection capacity, and decreases the price of local calls.
Key Words
Market Reform, Competition, Regulation, Franchising, Cross-subsidization, Privatization.