Nationalisation Corinne Waelti, seecon international gmbh Nationalisation
Find this presentation and more on: www. ssswm. info. Copyright & Disclaimer Copy it, adapt it, use it – but acknowledge the source! Copyright Included in the SSWM Toolbox are materials from various organisations and sources. Those materials are open source. Following the opensource concept for capacity building and non-profit use, copying and adapting is allowed provided proper acknowledgement of the source is made (see below). The publication of these materials in the SSWM Toolbox does not alter any existing copyrights. Material published in the SSWM Toolbox for the first time follows the same open-source concept, with all rights remaining with the original authors or producing organisations. To view an official copy of the Creative Commons Attribution Works 3. 0 Unported License we build upon, visit http: //creativecommons. org/licenses/by/3. 0. This agreement officially states that: You are free to: • Share - to copy, distribute and transmit this document • Remix - to adapt this document. We would appreciate receiving a copy of any changes that you have made to improve this document. Under the following conditions: • Attribution: You must always give the original authors or publishing agencies credit for the document or picture you are using. Disclaimer The contents of the SSWM Toolbox reflect the opinions of the respective authors and not necessarily the official opinion of the funding or supporting partner organisations. Depending on the initial situations and respective local circumstances, there is no guarantee that single measures described in the toolbox will make the local water and sanitation system more sustainable. The main aim of the SSWM Toolbox is to be a reference tool to provide ideas for improving the local water and sanitation situation in a sustainable manner. Results depend largely on the respective situation and the implementation and combination of the measures described. An in-depth analysis of respective advantages and disadvantages and the suitability of the measure is necessary in every single case. We do not assume any responsibility for and make no warranty with respect to the results that may be obtained from the use of the information provided. Nationalisation
Find this presentation and more on: www. ssswm. info. Contents 1. Introduction 2. Implementation 3. Outcomes 4. Case Example 3. Conclusion 4. References Nationalisation 3
Find this presentation and more on: www. ssswm. info. 1. Introduction How to Improve and Expand Public Sanitation and Water Services? • • No connection to the water or sanitation system No constant supply Poor drinking water quality No proper wastewater treatment Problem: Unsatisfactory delivery of water and wastewater services Nationalisation Mixed Privatisation (e. g. Public Private Partnership) Possible institutional frameworks Nationalisation 4
Find this presentation and more on: www. ssswm. info. 1. Introduction Problem Public as well as private operations cannot always guarantee water and sanitation services to all their residents. Why is it difficult to achieve local sanitation and water supply? • Water and sanitation services are critical to all consumers (independent of their purchasing power) • There is often a natural monopoly • Investments are long-lived and irreversible which hinders investors Nationalisation is seen as one possible solution to these problems. Nationalisation 5
Find this presentation and more on: www. ssswm. info. 2. Implementation Four Most Important Models of (Re-)nationalisation For the public sector, nationalising the utilities means facing the following responsibilities: operational viability, conductive policy environment and legal framework, legitimacy and accountability, financial sustainability and independent, functional regulatory system. (MONTEMAYOR 2005) People-centred Increased citizen and user participation and other democratic reforms. Workers co-operation Self-employed workers who are members as well as owners of the water and sanitation enterprise. Community Control Mobilisation of the community’s capacities and local resources. Public-Public Partnership (PUPs) Collaboration of two or more public authorities in order to improve capacities. Adapted from: BALANYA et al. (2005) Nationalisation 6
Find this presentation and more on: www. ssswm. info. 2. Implementation Enabling Environment Five steps need to be achieved in order to successfully replace private concessionaries: Enabling environment Operational viability Conducive policy environment and legal framework Legitimacy & accountability Financial sustainability Independent, functional regulatory Adapted from: MONTEMAYOR (2005) Nationalisation 7
Find this presentation and more on: www. ssswm. info. 2. Outcomes Possible Positive Outcomes of Nationalisation • Operating performance: If public officials depend on re-election, they have higher incentives to act in the public interest than private actors. • Investment decisions: The public provider is not profit driven and therefore focuses on fulfilling the public needs rather than maximising benefit. • Participation: Higher participation of the community members leads to higher accountability and transparency and to a better selfesteem of the community members. • Policies and legal framework: The issue is directly put on the political agenda, leading to a positive change in water and sanitation management policies and legal frameworks. Adapted from: MONTEMAYOR (2005) Nationalisation 8
Find this presentation and more on: www. ssswm. info. 4. Case Example Porto Alegre, Brazil – A Well Working Case (1/2) Positive outcomes • Comparably low infant deaths. • Increased service coverage and sewerage systems. • Increased wastewater treatment. Adapted from: HALL et al. (2002) Nationalisation 9
Find this presentation and more on: www. ssswm. info. 4. Case Example Porto Alegre, Brazil – A Well Working Case (2/2) Reasons for successful implementation • The Department for Water and Sanitation Sewage (DMAE) is wholly owned by the municipality. Nevertheless, it enjoys legal, operational and financial independence from the city council. • Participatory budgeting allows citizens to take part in the decisions on financial distributions. • All decision-making processes are open, leading to higher transparency and participation. • Higher information flow through educational programs and training courses by the DMAE. Adapted from: HALL et al. (2002) Nationalisation 10
Find this presentation and more on: www. ssswm. info. 5. Conclusion Advantages and Disadvantages Advantages • Increased participation • An alternative to privatisation • Investments occur in the public interest Disadvantages • High effort and costs for local government • Implementation is time consuming • Problems with corruption are possible Nationalisation only makes sense if the local government has the capacity and capability to lead the water and sanitation sector. Nationalisation 11
Find this presentation and more on: www. ssswm. info. 6. References BALANYA, B. (Editor), BRENNAN, B. (Editor), HOEDEMAN, O. (Editor), KISHIMOTO, S. (Editor) (2005. ): Reclaiming Public Water. Achievements, Struggles and Visions from Around the World. Amsterdam: Transnational Institute (TNI) and Corporate Europe Observatory (CEO). URL: www. tni. org/archives/books/publicwater. pdf[Accessed: 28. 08. 2012] HALL, D. , LOBINA, E. , VIERO, O. M. , MALTZ, H. (2002): Water in Porto Alegre, Brazil – Accountable, Effective, Sustainable and Democratic. Public Services International Research Unit (PSIRU) and Municipal Department of Water and Sanitary Sewage (DMAE). URL: www. waterjustice. org/uploads/attachment 16. pdf[Accessed: 11. 01. 2010] MONTEMAYOR, C. A. (2005): Possibilities for Public Water in Manila. In: BALANYA, B. (Editor); BRENNAN, B. (Editor); HOEDEMAN, O. (Editor); KISHIMOTO, S. (Editor) (n. y. ): Reclaiming Public Water. Achievements, Struggles and Visions from Around the World. Amsterdam, 213 -225. URL: www. tni. org/archives/books/publicwater. pdf [Accessed: 28. 08. 2012] Nationalisation 12
“Linking up Sustainable Sanitation, Water Management & Agriculture” SSWM is an initiative supported by: Created by: Nationalisation 13
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