News & Notices Vol. 2, No. 5 (Winter 2002)
Nancy C Alexander2002, News & Notices, Volume 2, No. 5
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Abstract
This issue of News & Notices focuses primarily on ways in which the PSD Strategy would accelerate the private (and NGO) provision of basic services (e.g., health, education, water) on a commercial basis — that is, with cost-covering user fees. To shift service provision from the public sector to the private sector, the Strategy calls upon borrowing governments to delegate basic service provision to private firms (and NGOs) under contracts that tie provision of financial support to the outputs or services delivered. Early drafts of the PSD Strategy recommended that the majority of assistance to low-income countries should be provided through output-based aid (OBA) schemes. The final decision – that OBA schemes should be piloted – is somewhat disingenuous since a big part of the Bank’s PSD portfolio is already in the form of OBA.
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