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The Late Embrace of Urban Water Service Privatization in India: A Political Economy Explanation

The Late Embrace of Urban Water Service Privatization in India: A Political Economy Explanation. Gregory Pierce Department of Urban Planning University of California, Los Angeles gspierce@ucla.edu. Research Question.

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The Late Embrace of Urban Water Service Privatization in India: A Political Economy Explanation

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  1. The Late Embrace of Urban Water Service Privatization in India: A Political Economy Explanation Gregory Pierce Department of Urban Planning University of California, Los Angeles gspierce@ucla.edu

  2. Research Question Which factors at the national and state level have enabled private sector participation (PSP) to emerge as a viable alternative to the public sector in India?

  3. Literature Contributions • Developing country privatization campaigns (Flynn and MzikengeChirwa, 2005; Barkinand Klooster, 2006; de Gouvello et al, 2012) • Indian water privatization • (Gopakumar, 2010; Sarangi, 2010; Mahalingam, Devkar and Kalidindi, 2011) • Regional and city determinants of the decision to privatize (Hefetz and Warner, 2011; Picazo-Tadeo 2012)

  4. Real GDP Per Capita, 1970-2011

  5. Indian Foreign Direct Investment, 1970-2011

  6. Key Water Sector Developments 1992 - Constitutional amendment 2002 - Second national water policy 2005 - Nehru Urban Renewal Mission (JNNURM) 2011 - Twelfth national plan

  7. Distinctives of Indian Privatization Data: 38 cases of urban water private sector participation in 12 states and Union Territories, 1992-2011

  8. StateModel Logistic model predicting likelihood that a state has at least one PSP initiative:

  9. Policy Implications • Private sector participation in water is likely to increase, despite virulent opposition • Shift to distributive schemes defies the international climate but reflects the increasing role of domestic firms • As regional parties gain influence, what is their impact on private sector participation?

  10. Research Directions • Explore the roles of resistance and contract revision in large-N study • Use a control group to find political-economic determinants of decision to privatize • Analyze connection between key contract terms and household access

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