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Private provision of public services in developing countries

2010

AI-generated Abstract

Private provision of public services has become a contentious issue, with emerging demands for private sector involvement as a remedy for public sector inefficiencies. This thesis critically examines the notion that private service providers in developing countries inherently outperform their public counterparts. By analyzing data from waste collection and water supply services across 32 local government units using Data Envelopment Analysis, the research finds that private involvement does not necessarily guarantee higher efficiency due to weak institutions and insufficient competition. The conclusion advocates for enhanced regulation and capacity building for both private and public entities before engaging in privatization.

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