InfraPOD

06 | Privatisation


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In the context of neoliberal reforms privatization is often presented as a way to make infrastructure service delivery more efficient and cost-effective. In this episode we try to give a strutured overview of potential avantages and disadvantages of both public and private service provision. We also discuss why public-private-partnerships are so popular and what are the challenges in the negotiation of such contracts.

References

Buse, K. & Bayliss, K. (2022). England's privatised water: profits over people and planet. https://doi.org/10.1136/bmj.o2076

Castro, R. (2024). Regulation of Natural Monopolies. https://doi.org/10.1007/978-3-031-55251-9_6

Deutscher Bundestag. (2024). Daseinsvorsorge. Begriff und Rechtsgrundlagen. https://www.bundestag.de/resource/blob/1013810/b600c65d9eff3e5f3eef1214a957ed04/WD-3-059-24-pdf.pdf

Devkar, G. A., Mahalingam, A., Deep, A., Thillairajan, A. (2013). Impact of Private Sector Participation on access and quality in provision of electricity, telecom and water services in developing countries: A systematic review, https://doi.org/10.1016/j.jup.2013.08.002.

European Commission. Services of general interest. https://commission.europa.eu/topics/single-market/services-general-interest_en

Fabre, A. & Straub, S.. (2023). The Impact of Public–Private Partnerships (PPPs) in Infrastructure, Health, and Education. https://www.aeaweb.org/articles?id=10.1257/jel.20211607

Fukuyama, F. (2016). Governance: What Do We Know, and How Do We Know It?. Annual Review Political Science. 19:89-105. https://doi.org/10.1146/annurev-polisci-042214-044240

Glaeser, E.L. & Poterba, J.M. (2020). Economic Analysis and Infrastructure Investement. https://www.nber.org/system/files/working_papers/w28215/w28215.pdf

Gupta, S., & Sharma, A. K. (2022). Evolution of infrastructure as an asset class: A systematic literature review and thematic analysis. https://doi.org/10.1057/s41260-022-00255-3

Hartnett, M. (2026). Market Failure: Natural Monopoly. https://www.sciotoanalysis.com/news/market-failure-natural-monopoly

Romero, M., Sandefur, J., Sandholtz, W.A. (2020). Outsourcing Education: Experimental Evidence from Liberia. https://www.aeaweb.org/articles?id=10.1257/aer.20181478&&from=f

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InfraPODBy Nadine Schröder & Laurenz Peters