Is privatisation the solution for solving the distribution problems in developing countries?
Lot of energy is being spent in the developing and developed world in discussing the role of privatization. Let us check the facts. At present, only about 6-8 percent of the world’s population receives water from the private sector. Even under the most optimistic projection, no more than 15 per cent will receive water from the private sector by 2020. Instead of being obsessed with the debate as to whether the public or the private sector is the best option, the fundamental question we should be asking is how to make the public sector more efficient, since by even 2020, some 85 percent of the world’s people will still be receiving water from the public sector. The performance of the public sector is not inherently bad: in fact, the most efficient water supply system in the world is run by the public sector (Singapore) but equally the most inefficient ones are also in the public sector. Our analyses show that in many parts of the world, private sector has improved water management practi
