Regulatory agencies : impact on firm performance and social welfare

The authors explore the relation between the establishment of a regulatory agency and the performance of the electricity sector. The authors exploit a unique dataset comprising firm-level information on a representative sample of 220 electric utilities from 51 development and transition countries for the years 1985 to 2005. Their results indicate that regulatory agencies are associated with more efficient firms and with higher social welfare.Infrastructure Regulation,Privatization,Energy Production and Transportation,Emerging Markets,Regulatory Regimes

Comparing the performance of public and private water companies in the Asia and Pacific region : what a stochastic costs frontier shows

Estache and Rossi estimate a stochastic costs frontier for a sample of Asian and Pacific water companies, comparing the performance of public and privatized companies based on detailed firm-specific information published by the Asian Development Bank in 1997. They find private operators of water companies to be more efficient than public operators. Costs in concessioned companies tend to be significantly lower than those in public companies. The authors show that rankings based on standard indicators are not always very consistent. This paper contributes to that growing literature. The rest of the paper is organized as follows. Section 2 presents the theoretical structure of the cost model estimated. Section 3 provides an overview of earlier studies of the water sector. Section 4 presents the estimates of costs frontiers obtained for a large sample of Asian and Pacific Region water companies, distinguishing between public and private operators. Section 5 compares the performance ranking from efficiency frontier measures to those obtained from productivity indicators. Section 6 concludes.Decentralization,Environmental Economics&Policies,Water and Industry,Economic Theory&Research,Water Conservation,Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Water and Industry,Economic Theory&Research,Town Water Supply and Sanitation

The case for international coordination of electricity regulation : evidence from the measurement of efficiency in South America

A decade long experience shows that monitoring the performance of public and private monopolies in South America is proving to be the hard part of the reform process. The operators who control most of the information needed for regulatory purposes have little interest in volunteering their dissemination unless they have an incentive to do so. The authors argue that, in spite of, and maybe because of, a much weaker information base and governance structure, South America's electricity sector could pursue an approach that relies on performance rankings based on comparative efficiency measures. The authors show that with the rather modest data currently available publicly, such an approach could yield useful results. They provide estimates of efficiency levels in South America's main distribution companies between 1994 and 2000. Moreover, the authors show how relatively simple tests can be used by regulators to check the robustness of their results and strengthen their position at regulatory hearings.Economic Theory&Research,Environmental Economics&Policies,Enterprise Development&Reform,Labor Policies,Health Monitoring&Evaluation,Environmental Economics&Policies,Economic Theory&Research,Geographical Information Systems,Health Monitoring&Evaluation,Educational Technology and Distance Education

Can the Gains from Argentina's Utilities Reform Offset Credit Shocks?

Computable general equilibrium, Regulation

Trade Balance Effects of Infrastructure Services Liberalization and of Their Regulation

During the 1990s, in most regions of the world, governments restructured their infrastructure sectors to facilitate some form of private participation in the operation and financing of the sector. These reforms, generally associated with other macroeconomic reforms which included the liberalization of international capital, goods and services flows have often initially produced significant flows of foreign direct investments flows to small countries. Overtime however they have also been associated with reversed flows, first of profits and later, as international financial crisis exploded, of capital repatriation that often put pressure on the service trade balances. These facts contribute to explain why trade in services are now at the top of the WTO agenda forum and point to the need to try to improve our understanding of the interactions between the privatisation of infrastructure monopolies and associated trade flows.Trade Balance; private participation; macroeconomic reforms

Are cost models useful for telecoms regulators in developing countries?

Worldwide privatization of the telecommunications industry, and the introduction of competition in the sector, together with the ever-increasing rate of technological advance in telecommunications, raise new and critical challenges for regulation. Fo matters of pricing, universal service obligations, and the like, one question to be answered is this: What is the efficient cost of providing the service to a certain area or type of customer? As developing countries build up their capacity to regulate their privatized infrastructure monopolies, cost models are likely to prove increasingly important in answering this question. Cost models deliver a number of benefits to a regulator willing to apply them, but they also ask for something in advance: information. Without information, the question cannot be answered. The authors introduce cost models and establish their applicability when different degrees of information are available to the regulator. They do no by running a cost model with different sets of actual data form Argentina's second largest city, and comparing results. Reliable, detailed information is generally scarce in developing countries. The authors establish the minimum information requirements for a regulator implementing a cost proxy model approach, showing that this data constraint need not be that binding.ICT Policy and Strategies,Decentralization,Environmental Economics&Policies,Economic Theory&Research,Business Environment,ICT Policy and Strategies,Environmental Economics&Policies,Geographical Information Systems,Economic Theory&Research,Educational Technology and Distance Education

Mr. Meteo: Providing climate information for the unconnected

A majority of the world remain unconnected to the World Wide Web due to issues like low literacy and relevant information. This study presents Mr. Meteo, a system that provides weather information via voice calls in local languages to rural farmers in Ghana. The study used an interdisciplinary approach to identify relevant informational needs and socio-economic implications, and early end-user and stakeholder involvement. Mr. Meteo was deployed in Bolgatanga, Ghana and represents a novel design in terms of actual web data access to rural areas. The positive feedback from farmers, and stakeholder’s interest in continuity, shows this approach to be an appropriate method of development and implementation of information systems for rural areas; successful due to end-user and stakeholder involvement, focus on existing technologies, the use of voice technologies to mitigate the problem of illiteracy, and information relevance to end-users. This paper presents the methodology and results of this novel, practical, local-context ICT4D project,that has produced a viable information system for rural communities