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Privatization in Deep Water? Water Governance and Options for Development Cooperation

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The current momentum of confrontation between different stakeholders in the water sector could be a chance for renegotiating water governance in developing countries. This is one of the central results of the report "Privatisation in Deep Water?" published by the Institute for Development and Peace (INEF). Water governance is one the most debated issues in current development policies and has led to increased polarisation and sometimes violent conflict, especially in the drinking water sector. Many developing countries suffer from insufficient infrastructure for the supply of drinking water and sanitation. In view of the urgency for action and the important financial investment needed to improve the situation, the call for an involvement of the private sector was frequently presented as the only alternative. While the public sector has often been blamed for bad water service and corruption, the subsequent involvement of the private sector has repeatedly resulted in a lack of supply to poor population groups and has not kept the promise of large investments in infrastructure.

As the new development report of the United Nations confirms, the current "water crisis" is largely a crisis of governance. The new INEF study investigates the roots of the current polarisation over the public and private options in this regard. It critically analyses the cooperation between international financial institutions and the private sector and provides an insight into the underlying interests, norms and values of public, private and non-state actors. Against this backdrop, the current momentum of confrontation could be a chance for renegotiating water governance in developing countries. The report furthermore presents guidelines for making use of the large scope of action of development policies to promote socially, economically, and ecologically sustainable water governance. (by Annabelle Houdret, Institute for Development and Peace)

The report "Privatisation in Deep Water? Water Governance and Options for Development Cooperation " by Annabelle Houdret and Miriam Shabafrouz can be ordered at the Institute for Development and Peace, e-mail: inef@inef.uni-due.de, and is available online at: http://inef.uni-due.de/page/documents/Report84.pdf
 

 
Published in:ECC-Newsletter, December 2006