Does Privatization Ensure Public Accountability of Public Utilities?

• In Event: Accountability and Responsiveness in Public Policy

Abstract

【Abstract】Accountability or more precisely the lack of accountability has been a great concern among scholars studying Public-Private-Partnerships (PPP). Taking water supply in selected large cities as a case, this paper addresses the ownership structure under different institutional arrangements of PPP and assessing their effectiveness in ensuring publicness of public utilities in China.

The first section provides background information for the reforms of water supply in the past 20 years. The institutional arrangements will be grouped into 4 basic types: private ownership operating under monopoly; private ownership operating with competition to some extent; public ownership operating under monopoly; and public ownership operating with competition to some extent.

Section Two conducts a comparative assessment of water supply under different institutional arrangements from consumer perspectives. The analytical framework for publicness of public utilities includes four dimensions: economy (the pace and justifiability of price increases for water consumption); quality of products and services; sustainability (responsibility in ecological conservation and pursuing a long-term strategy); and consumer satisfaction. Preliminary research found mixed results, meaning that there is no clear line between public and private ownership in serving better public interest, at least judging from the four dimensions.

Section Three is further discussion of findings in the previous sections. The relation between the degree of publicness and types of institutional arrangements under PPPs so as to establish some general rules or causal links. These rules or links will be explained in the Chinese context. Another issue to be discussed relates to theoretical implications of our findings.
【Keywords】PPPs; Public accountability; Water Supply;

Authors

• Le Li

• 琮 贾