ASi" kUCTURE FlOR DEVELOPMENT

* Option A: Public ownership and operation, these arrangements require appropriate sectoral rethrough
a public enterprise or government depart- structuring to maximize the opportunity for compement
tition and to ease the regulatory burden.
* Option B: Public ownership but with private Chapter 4 examines issues that neither ommerresponsibility
for all operation (and for financial cialization nor competition alone can addressrisk)
problems of externalities (particularly environ-
* Option C Private ownership and operation mental), distributional equity, and the need for
* Option D: Community and user provision. coordination of investments. It discusses ap
Tfhe remainder of this Report discusses how proaches for assessing and creating accountability
more efficient and responsive provision of infra- to social and environmental concerns, through destructure
can be achieved by improving. incen- centralization of governmental responsibilities, partives-tlrough
stronger mechanisms of account- ticipation by users and stakeholders (including
ability and autonomy. Chapter 2 discusses ways to rough self-help' schemes, Option D), and plancreate
accountability in a public agency or gov- uning. Chapter 5 reviews how mechanisms of financernment
department (Option A) by establishing ing infrastructure can create incentives for efficiency
commercial principles and through organizational by providing the disciplinary pressure of private firestructuring
(corporatization). It also reviews con- nandal markets. Because different aspects of infratracting
instruments to permit better monitoring structure provision involve different kinds of risks,
and performance of operations, and appropnate the chapter considers how a suitable packaging of
mechanisms for achieving financial autonomy. finance using alternative sources and instruments
Commercial prindples are often very difficult to (private and public) can lead to better risk manage-.
instill permanently in the absence of effective com- ment-in addition to mobilizing increased funds
petition. Chapter 3 discusses the scope and tech- for infrastructure investmenL Chapter 6 returns to
niques for marshaling market forces to create the menu of options and shows how these can be
accountability thomugh competition and-where applied in different infrastructure sectors and councompetition
alone is insufficient-regulatior. Chap- tries. The conditions for successful implementation
ter 3 also examines experiences with public owner- of these options axe also outlined. The chapter closes
ship and private operation (Option B), in which with a broad assessment of the economic and financompetition
for the market is used, as well as pri- cial benefits that countries can gain by follo dng the
vate ownership and operation (Option C). Both of reform agenda presented in this ReporL
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