Waiting for Miracles: The Commercialization of Urban Water Services in Zambia
Hulya Dagdeviren,
Hulya Dagdeviren
reader in economics at the University of Hertfordshire, College Lane, Hatfield, Herts AL10 9AB, UK (e-mail: [email protected] ).
Search for more papers by this authorHulya Dagdeviren,
Hulya Dagdeviren
reader in economics at the University of Hertfordshire, College Lane, Hatfield, Herts AL10 9AB, UK (e-mail: [email protected] ).
Search for more papers by this authorThe original research and fieldwork for this article were carried out for a project funded by the United Nations Development Programme (UNDP). Thanks are due to Terry McKinley, Michael Soko and other staff of the UNDP Zambia office. The resources provided by Oswald Chanda, Kasonge Lumba and Kelvin Chitumbo of the National Water and Sanitation Council are greatly appreciated. I am also grateful to Kate Bayliss, Ben Fine, Keith Salmon and two anonymous referees who provided extensive comments on early drafts.
ABSTRACT
This article focuses on the commercialization of urban water services in Zambia. It aims to demonstrate the tension between cost recovery and service extension when water sector reforms combine investment cuts with price increases. It is argued that in low-income economies where infrastructure limitations are serious and poverty is widespread, heavy reliance on ‘tariff rationalization’ with low levels of investment can lead to reduced access to water and render water charges unaffordable. Reforms to public services can prove futile in the absence of upfront resources for investment in the restoration and extension of the existing infrastructure. In many ways, Zambia typifies other low-income economies; this study thus offers useful lessons for them.
REFERENCES
- AHC-MMS (2002) ‘Annual Report’. Kitwe : Asset Holdings Company–Mining Municipal Services .
- AHC-MMS (2003) ‘Annual Report’. Kitwe : Asset Holdings Company–Mining Municipal Services .
-
Alcazar, L.,
M.A. Abdala and
M. Shirley (2002) ‘ The Buenos Aires Water Concession’, in
M.M. Shirley (ed.) Thirsting for Efficiency, pp. 65–102.
Washington
,
DC
: The World Bank.
10.1016/B978-008044077-4/50006-5 Google Scholar
- Ballance, T. and S. Tremolet (2005) ‘Private Sector Participation in Urban Water Supply in Sub-Saharan Africa’. Frankfurt : German Development Cooperation (GTZ), KfW Bankengruppe.
- Bayliss, K. (2003) ‘Utility Privatisation in Sub-Saharan Africa: A Case Study of Water’, Journal of Modern African Studies 41(4): 507–31.
- Beddies, S., H. De Soto, A. Bakllamja and X. De Beauchene (2004) Decentralization and Water Sector Privatization in Albania, Poverty and Social Impact Analysis. Tirana , Albania : The World Bank/UNDP.
- Central Statistical Office (various years) Zambia Demographic and Health Survey. Lusaka : Central Statistical Office.
- Central Statistical Office (2004) Zambia Living Conditions Monitoring Survey 2002–3. Lusaka : Central Statistical Office.
- Chisari, O., A. Estache and C.W. Price (2003) ‘ Access by the Poor in Latin America's Utility Reform: Subsidies and Service Obligations’, in C. Ugaz and C.W. Price (eds) Utility Privatization and Regulation, pp. 25–53. Cheltenham , UK : Edward Elgar.
- Coopers and Lybrand Co. (1988) ‘ Re-organization Study of the Water and Sanitation Sector in Zambia’. Final Report. Sponsored by the Government of the Republic of Zambia, the United Nations Development Programme and the World Bank. Lusaka : Government of the Republic of Zambia .
-
Dagdeviren, H. (2006) ‘Re-visiting Privatization in the Context of Poverty Alleviation: The Case of Sudan’, Journal of International Development
18(3): 469–89.
10.1002/jid.1244 Google Scholar
- Dagdeviren, H. (2007) ‘ Zambia: The Commercialisation of Urban Water and Sanitation’, in K. Bayliss and B. Fine (eds) Privatization and Alternative Public Sector Reform in Sub-Saharan Africa: Delivering on Electricity and Water, pp. 183–209. London : Palgrave Macmillan.
-
Dore, M.H.I.,
J. Kushner and
K. Zumer (2004) ‘Privatization of Water in the UK and France: What Can We Learn?’, Utilities Policy
12: 41–50.
10.1016/j.jup.2003.11.002 Google Scholar
- Eberhardt, A., A. Clark, N. Wamukonya and K. Gratwick (2005) ‘ Power Sector Reform in Africa: Assessing Impact on Poor People’. Report by Energy Sector Management Assistance Programme, No 306/05. Washington , DC : The World Bank.
- Estache, A., S. Perelman and L. Trujillo (2005) ‘Infrastructure Performance and Reform in Developing and Transition Economies: Evidence from a Survey of Productivity Measures’. Policy Research Working Paper 3514 (February). Washington , DC : The World Bank.
- Hall, D. and E. Lobina (2004) ‘Private and Public Interests in Water and Energy’, Natural Resources Forum 28: 268–77.
- Harris, C. (2003) ‘Private Participation in Infrastructure in Developing Countries’. Working Paper No 5. Washington , DC : The World Bank.
-
Hirschhausen, C.,
T. Beckers and
A. Brenck (2004) ‘Infrastructure Regulation and Investment for the Long Term: An Introduction’, Utilities Policy
12: 203–10.
10.1016/j.jup.2004.09.002 Google Scholar
-
Kessides, I.N. (2004) Reforming Infrastructure: Privatization, Regulation, and Competition.
Oxford and
New York
: Oxford University Press for the World Bank.
10.1596/0-8213-5070-6 Google Scholar
- Kirkpatrick, C. and D. Parker (2006) ‘Domestic Regulation and the WTO: The Case of Water Services in Developing Countries’, World Economy 28(10): 1491–1508.
- Kirkpatrick, C., D. Parker and Yin-Fang Zhang (2006) ‘An Empirical Analysis of State and Private-Sector Provision of Water Services in Africa’, The World Bank Economic Review 20(1): 143–63.
-
Komives, K.,
V. Foster,
J. Halpern and
Q. Wodon (2005) Water, Electricity, and the Poor: Who Benefits from Utility Subsidies?
Washington
,
DC
: The World Bank.
10.1596/978-0-8213-6342-3 Google Scholar
- Lobina, E. (2005) ‘Problems with Private Water Concessions: A Review of Experiences and Analysis of Dynamics’, Water Resources Development 21(1): 55–87.
- Lusaka WSC (2002) ‘Annual Report’. Lusaka : Lusaka WSC .
- Martimort, D. (2006) ‘An Agency Perspective on the Costs and Benefits of Privatization’, Journal of Regulatory Economics 30: 5–44.
- McDonald, D.A. (2002) ‘ The Theory and Practice of Cost Recovery in South Africa’, in D.A. McDonald and J. Pape (eds) Cost Recovery and the Crisis of Service Delivery in South Africa, pp. 17–40. London: Zed Books; Cape Town : HSRC Publishers.
- MoD (1988) ‘Reorganization Study of the Water and Sanitation Sector in Zambia’. Final Report Vol.1. Lusaka : Ministry of Decentralization .
- MLGH (2004) ‘Water Supply and Sanitation Sector Finance and Resource Flow Assessment’. MLGH Sector Finance Working Paper No 7. Lusaka : Ministry of Local Government and Housing.
-
Neuho, K. and
L. De Vries (2004) ‘Insufficient Incentives for Investment in Electricity Generation’, Utilities Policy
12: 253–67.
10.1016/j.jup.2004.06.002 Google Scholar
- Nkana WSC (2003) ‘ Strategic Plan: 2003–2007’. Kitwe : Nkana WSC.
- NWASCO (2002) ‘ Urban and Peri-Urban Water Supply and Sanitation Sector Report 2001/2002’. Lusaka : National Water Supply and Sanitation Council.
- NWASCO (2003) ‘ Urban and Peri-Urban Water Supply and Sanitation Sector Report 2002/2003’. Lusaka : National Water Supply and Sanitation Council.
- NWASCO (2004) ‘ Water Sector Reform in Zambia’. Report. Lusaka : National Water Supply and Sanitation Council.
- NWASCO (2005) ‘ Urban and Peri-Urban Water Supply and Sanitation Sector Report 2004/2005’. Lusaka : National Water Supply and Sanitation Council.
- NWASCO (2006) ‘ Urban and Peri-Urban Water Supply and Sanitation Sector Report 2005/2006’. Lusaka : National Water Supply and Sanitation Council.
- NWASCO and DTF (2005) ‘Reaching the Millennium Development Goals for Water Supply and Sanitation in Zambia’. Lusaka : National Water Supply and Sanitation Council and Devolution Trust Fund .
- PANA (2004) ‘ Lusaka in Sewerage Disposal Nightmare’, Daily Newswire 24 November (Panafrican News Agency).
- Prasad, N. (2006) ‘Privatization Results: Private Sector Participation in Water Services after 15 Years’, Development Policy Review 24(6): 669–92.
- Roe, A., A. Feltham, A. Darbinyan, R. Yeganyan, N. Shakhnazaryan, L. Melikyan and A. Kakosyan (2003) ‘Water Sector Reform in Armenia: Poverty and Social Impact Analysis’. Report for DFID (UK). London : Department for International Development .
- Sawkins, J.W. and V.A. Dickie (2005) ‘Affordability of Household Water and Sewerage Services in Great Britain’, Fiscal Studies 26(2): 225–44.
-
Shaoul, J. (1997) ‘The Power of Accounting: Reflecting on Water Privatization’, Accounting, Auditing and Accountability Journal
10(3): 382–405.
10.1108/09513579710178124 Google Scholar
- M.M. Shirley (ed.) (2002) Thirsting for Efficiency. Washington , DC : The World Bank.
-
Shirley, M.M.,
L.C. Xu and
A.M. Zuluaga (2002) ‘ Reforming Urban Water Supply: The Case of Chile’, in
M.M. Shirley (ed.) Thirsting for Efficiency, pp. 189–231.
Washington
,
DC
: The World Bank.
10.1016/B978-008044077-4/50009-0 Google Scholar
- Smith, L. (2006) ‘Neither Public Nor Private: Unpacking the Johannesburg Water Corporatization Model’. Social Policy and Development Programme Paper No 27. Geneva : United Nations Research Institute for Social Development .
- UNDP (2006) Human Development Report 2006. Beyond Scarcity: Power, Poverty and the Global Water Crisis. London : Palgrave Macmillan for United Nations Development Programme.
- C. Ugaz and C.W. Price (eds) (2003) Utility Privatization and Regulation. Cheltenham , UK : Edward Elgar.
- Woo, C-K., D. Lloyd and A. Tishler (2003) ‘Electricity Market Reform Failures: UK, Norway, Alberta and California’, Energy Policy 31: 1103–15.
- World Bank (2001) ‘Incentive-Based Subsidies’. Public Policy for the Private Sector, Note No 232. Washington , DC : The World Bank.
- World Bank (2002) ‘Upgrading Low Income Urban Settlements: Zambia Country Assessment Report’. Washington , DC : The World Bank.
- World Bank (2003) ‘Issues Facing Zambia's Commercial Water Utilities: A Review Based on Studies from Copperbelt Province’. Washington , DC : The World Bank (mimeo).
- World Bank (2004) ‘Institutional Capacity Building for the Water Regulator: The National Water and Sanitation Council (NWASCO)’. Washington , DC : The World Bank.
-
World Bank (2005) World Development Indicators. Online Database. http://devdata.worldbank.org/wdi2005/Cover.htm
10.1596/0-8213-6071-X Google Scholar
- World Bank (2006) ‘Water Sector Performance Improvement Project’. Project Information Document (PID) Appraisal Stage, Report No AB441. Washington , DC : The World Bank. http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2006/05/02/000104615_20060502155219/Rendered/PDF/ZAM.WSPIP.FinalPID.pdf.
