ASi" kUCTURE FlOR DEVELOPMENT

Box 6.1 Ingedientr. of good peromneunder
alternatiLve institutional forms
Option AM Public ownership and public operation changes in input cost), mechanisms to reolve disputes,
* Co munent roles as ownez wgolato and and sanction for no'perlormince.
tar;dearly separateci. opera- * Contrcts awarded by tnspat selection
-~~~~DPbi -Wwi*.No government -mra : interfeence suje to in detad : manage- -:menc pra mtiWs mn bIye onokcomptzbve bidding
meOt Option Private owne-ship and private operation
* Public enterprises subject to general commeirial Apropriate comnpetitive restructuring of subseclaw
and to general accunting and auditing standards to undieken.
-(operating on 'leve playing privte enlte--
(operating on level playing field"-with private ~
* Practical and statutory barriers to private entry re-
- . - PF
* Tariffs set to acieve cost mcovery as appropriate,
moved - --- - (for - : S examnple, : - restictons on access to aedit and
t p p i
and entrisesubject to hard budget - - -
- - . . * R~~~~~~~~~~~~Iegulabion
in place to proted publc mbnters
-- P--hic- serice: obigatiomn, if any, tareed andcompensated
, . a,, .when ta,,ei competitive discipline is msufficent and to err-
: . a~~ompertsated explicidybrygovanemtt-ansfers -
explicitly-by government transfers.
sure private entrants access to network facilities when
Manags selected by professional qualificathons eleand
compensated appropriately:
i* Apprpriate mnechamsms
in place to obtain feed- Option D- Community and user provision
back fi use- * Participation of users or community members
* Discrete activities and fumctions that can be un- - ~ - n
Am earlest staze of prom preparation to ensure
bmdled open bt private entry (for example, tirough ser- :wilingness topay and ownershipof scheme..
vice contracts).
* contacts). . - anoe - . . - . - * Participation of bneficaries ensued through ap-
= Private managementskfflsobtanedas neededfo prp-b or-iafma masanwItco tin
example through managementconlracts) - m nsnd wit contibuion
Ownership and control sbre wit inhkndprn
* User group
ash
supported by access to hahiing and
sector (for example, as minority shareholder). itenmical assistance from sectoral agency or nongovern-
OptienB: Public p and private operation . mental organizations.
* .asic legal = nock of . 3cI~ * Appropriate consieration given to tehical recre
ibe nenre -rmewhan is, in plac m quirements for interonnection with primary or sec-
- - diMKhblenfolrementmechanis,m inlace--.-
: - . , - - ~~~~~~~~~~~~ondaiy
network ice ifreslevantL
-Contact s dclary spedfyurionitorable performance - .
I .arZii~in s . ..
i
er Sevkce operators appmpnately trained, conipentkeS=b
respo nsidstf ofowner and cperatoc processes -- - ----
- . -
-
~~~~~~~~~~~~~sated,
and held accountable.-
for periodicreviw (especially to acnt forunforesee
tling of exstng organizations or the immediate scale power generation off the national gid-can
crafting of an entirely new regulatory frmmework provide effective and affordable service in many
areas, when those who contnrbute to the costs are
OniONC PIVATE OWNESHIP AND PRIVATE OPERA- the primary beneficaries. Communtity self-help
noN. Private (induding cooperive) ownership schemes must be selected, designed, and impleand
operation are most attractive to the pnvate sec- mented locally-not imposed from outside. They
tor when there is high potential for securing rev- may also offer the ondy feasible approach in inforenues
from user charges and when commecial risk mal periurban settements and rual aeas until the
and political risk are low- This option is likely to more formal supply systems expand their networks
apply most readily in acivities that lend themselves sufficently
to competition, such as telecommunications, power, . Previous chapters discussed experience with
gas, railways, and ports (with appropnate tariff each of these institutional arrangements and the facpolicies);
less readily to waste disposal; and least of tots contnbuting to success or failure. The main conall
to rual roads.
ditions for good perfonmance in each are summarized
in Box 6.L
OPIIoN D: COMMuNIry AND USER PROvISiON. For
municipal and local services, user provision or com- Country conditions
munity self-help arangements that provide smalerscale
infrastructure-such as village feeder roads, Ulmimately, what is needed and what is possible towater
supply and sanitation, and canals, or small- gether determine each country's reform options.
m