The neoliberalization of water in Lima,Peru

Neoliberalization of the water sector in Lima, Peru, is analyzed using an innovative conceptual framework with three interrelated dimensions: techno-environmental improvements, the monetization of water services and the search for political legitimacy. Application of this conceptual framework to the recent reforms of the public water services of Lima, a city historically fraught with social inequalities and water management problems, shows that there have been two distinctive phases: firstly, emphasis on techno-environmental improvements and monetization in the 1990s (when the privatization of the local water utility was the ultimate, but unfulfilled, goal); secondly, a focus on monetization and legitimization in the 2000s (marked by more flexible mechanisms of private sector involvement). Fieldwork in Lima reveals that positive results from increased investment in water services have been undermined by the discriminatory and short-term basis of neoliberalization of water. Problems of debt financing, neglect of equity of access to services and weak environmental sustainability threaten the long-term future.     

Uganda's Flower Farms and Private Sector Development

The European Union's (EU) pledge to assist private sector development (PSD) in the African, Caribbean, and Pacific (ACP) states is a key pillar of its bilateral trade relationship with former colonies. It is this ostensible support to PSD that allows the EU to contend that its pursuit of market opening in ACP countries under Economic Partnership Agreements (EPAs) is not detrimental to human well‐being in low‐income countries, in spite of risks of import flooding and EU monopolization of emerging sectors. This article explores the legitimizing ‘development’ rationales of EU PSD frameworks from the perspective of stakeholders in a strategic site of private sector activity in the ACP grouping. Specifically, it explores Europe's PSD agendas from the standpoint of investors, managers and workers in Uganda's cut‐flower sector, which is domestically seen as one of the sectors most likely to bring economic benefits to Uganda. Based on interviews with stakeholders in the industry, the article explores whether actors in this business sector concur with the underlying ‘pro‐poor’ rationales of Europe's PSD framework and whether Europe is seen as a meaningful partner in this prioritized site of private sector activity.     

Inherited competence and spin-off performance

In this paper we extend the hereditary theory of spin-off formation, developed by Klepper, by relating the concept of inherited competence to two different types of spin-offs—university and private sector spin-offs—and two different types of inherited competence—R&D competence and innovation competence. We then utilize this extension of Klepper's framework to study the evolution of a science-based industry—the biotech industry. Using the Irish biotech industry as a case-study, we find that differences in pre-entry experience manifest themselves most markedly in terms of the firm's capacity to attract venture capital, with private sector spin-offs considerably outperforming university spin-offs. We argue that the superior performance of the private sector spin-offs is explained by the nature of their inherited competence in that they are characterized by higher levels of innovation competence.     

From private initiative to public intervention in Spanish water management: the case of the Muga and Fluvià rivers (1850–1930)

During the second half of the nineteenth century and the first third of the twentieth century, Spain, along with some other European countries, underwent a process of transition regarding water resources management. One of the most obvious transformations that occurred during this period was the increasing lead taken by the government in the building of large hydraulic structures and the subsequent decrease in the influence of private initiative in this matter. The government's aim was to exploit the water resources provided by the rivers to their full, and in particular to use the water that was destined for irrigation to maximum effect. The repeated failure of projects promoted by private companies led the government, not without problems, to enact regulations and create hydraulic plans to be put into motion by the public sector. This change in focus is the key to understanding the frenetic pace of hydraulic infrastructure construction that occurred later and which made Spain one of the world's leading nations in terms of indicators such as the number of large reservoirs in use. This article focuses on the transition from private initiative to public intervention and evaluates the main stages of this process in Spain. The cases of the basins of the Muga and Fluvià rivers, located in the extreme north-east of the Iberian Peninsula in Catalonia, are described in light of this process. This research attempts to verify that despite their modest size and their distance from the main decision-making centres, these two cases reflected the situation at the national level. This was just one of the many local effects of the transition process of water resources management in Spain, even though the results of this transformation would be neither immediate nor effective in the short term.     

Privatisation: An attempt that failed

Throughout the twentieth century doctors in most western countries strongly resisted government attempts to intervene in private medical markets. The support for privatisation that has developed during the current economic recession is welcomed therefore by the medical profession. In several countries campaigns have been staged for a full or partial return to market forces in the health care field. This article traces the course of one such push in Canada where doctors and other advocates of privatisation demanded a larger role for the private sector in the funding and management of Medicare, the national health insurance system. The policy outcome is contrary to the general privatising tendency in many countries: after a period of intense controversy the federal government passed legislation to preserve and strengthen the public aspects of the scheme. The normally powerful medical profession lost its campaign for an infusion of private funds into the health system and for the retention of the right of doctors to set their own fees. Consumer and other non‐producer groups, which have not traditionally played a central role in health policy, mobilised in defense of Medicare and were able to achieve most of their aims.     

Political Decoupling: Private Implementation of Public Policy

Where policy goals can be achieved through regulation of private firms, private provision of public services allows governments to separate public policies from their political costs by shifting those costs to the private sector. Over the past three decades, financial decoupling has emerged as a regulatory strategy for promoting conservation, especially in the energy sector. Decoupling refers to the separation of a firm’s revenues from the volume of its product consumed, which allows companies to pursue resource efficiency free from financial risk. Similarly, when private firms provide public services, they separate public policies from their political costs. This political decoupling allows governments to pursue controversial policies while avoiding their attendant political risks. Applied to environmental policy, this theory implies that potentially unpopular conservation policies are more likely to be adopted and succeed when implemented through private firms. As an initial test of the theory, we analyze California water utilities and their responses to that state’s drought from 2015–2017. Analysis shows that, compared with those served by local government utilities, private utilities adopted more aggressive conservation measures, were more likely to meet state conservation standards, and conserved more water.     

The New Scramble for the African Countryside

There is in Africa, as in other parts of the third world, a desire for environmental management that simultaneously incorporates and benefits all stakeholders, including private businesses and villagers. While these partnerships continue to displace the failed state‐centric management of the African landscape, research to document their local‐level impact is still formative and developing. This article is an attempt to examine the new environmental management partnerships emerging in southern Africa's countryside. It argues that these new interventions not only fail to deliver benefits to villagers: more importantly, they curtail the long‐established rights to land and other natural resources of indigenous communities. While villagers may engage in a battle to recover these rights, it is a struggle in which the odds are stacked against them, and which the private sector and its partners are set to win.     

The “Commons” Versus the “Commodity”: Alter‐globalization,Anti‐privatization and the Human Right to Water in the Global South

Abstract: In response to the growth of private sector involvement in water supply management globally, anti‐privatization campaigns for a human right to water have emerged in recent years. Simultaneously, alter‐globalization activists have promoted alternative water governance models through North‐South red‐green alliances between organized labour, environmental groups, women's groups, and indigenous groups. In this paper, I explore these distinct (albeit overlapping) responses to water privatization. I first present a generic conceptual model of market environmentalist reforms, and explore the contribution of this framework to debates over ‘neoliberalizing nature’. This conceptual framework is applied to the case of anti‐privatization activism to elucidate the limitations of the human right to water as a conceptual counterpoint to privatization, and as an activist strategy. In contrast, I argue that alter‐globalization strategies—centred on concepts of the commons—are more conceptually coherent, and also more successful as activist strategies. The paper concludes with a reiteration of the need for greater conceptual precision in our analyses of neoliberalization, for both academics and activists.     

Sustainability Standards and the Water Question

Increased global trade in agricultural commodities has boosted fresh water consumption. This export of ‘virtual water’, embedded in products sold abroad, has increasingly affected local communities and ecosystems, especially in arid regions. Recent initiatives to certify agricultural production are showing a rapidly growing interest in considering water issues within schemes of quality assurance, sustainable production and fair trade. This article scrutinizes current water sustainability certification schemes, and how they affect local water user communities. The authors use three notions of governmentality to examine water sustainability standards and how they aim ‘to conduct the conduct’ of water users: (1) standards as ‘production of truth’ and ‘mentalities’ that constitute systems of collective rationalities, values, norms and knowledge; (2) standards as networks that prescribe roles and establish power relations between companies and producers; and (3) standards as ‘techniques of visibilization’ that control practices and discipline producers. Private standards in general reinforce the political and market power of private sector agro‐food chains in local water management, to the detriment of local water user communities and national governments. However, sustainability certification could also potentially enable local, regional, national and international organizations of user communities to stake claims and negotiate to protect their water sources and livelihoods.     

Voluntary Environmental Programs in the Public Sector: Evaluating an Urban Water Conservation Program in California

Solving conflictual environmental policy problems is increasingly falling under the purview of local governments and public agencies. Nonregulatory approaches, such as the development of voluntary environmental programs (VEPs), could offer a useful policy alternative as they often have greater political traction and flexibility. However, there has been little work examining the use of VEPs in the public sector. This article uses a new dataset from California to examine how political institutions affect decisions by local governments and public agencies to participate in a voluntary urban water conservation program and whether this program has improved the water conservation performance of its members. The results show that special district governments, private utilities, and water suppliers dependent on purchased water are more likely to participate in the program and to join early. However, urban water agencies that have joined the program have not reduced their per capita water use more than those that have not. These results underscore the influence of political institutions in public‐sector decision making and demonstrate that, as in the private sector, commitment to a VEP by local government and public agencies does not guarantee implementation or environmental improvements. While voluntary programs offer political and administrative advantages, in order for VEPs in the public sector to be effective they must be accompanied and supported by credible enforcement mechanisms, performance standards, and rigorous monitoring programs.     

The “who” and “how” of place marketing: the role of the private sector in Rutherford County,North Carolina

ABSTRACT

Private sector actors are often viewed as a part of the outcome for an economic development project. The assumption, however, ignores the early role of the private sector in marketing places for firm recruitment. Through a study of two recruitment projects in Rutherford County, North Carolina, I examine the points of entry of private sector actors in the place marketing process. Data gathered from interviews and primary sources reveal that the private sector is actively leading the recruitment of firms and the marketing of places. This paper shows how private sector actors produce knowledge about places, market a place within their own interests, and shape a government’s agenda through their involvement in place marketing. Examining economic development actors as active place-makers reveals how, through place marketing processes, these actors incorporate their own interests in the construction of place.     

新公共管理对官僚制是摒弃还是扬弃——基于制度层面的思考

新公共管理是20世纪70年代以后西方各国先后开展的以“企业家政府”为理论模型、以市场化运作模式和私营部门的管理为研究方法、以提高政府工作效率为目的的一项改革运动。新公共管理对政府流程再造的初期的确发挥了一定的作用,提高了行政效率,但是仍然无法改变官僚制的人事制度。新公共管理所提出的私营部门的管理方法,只是对官僚制的修正与补充,是对官僚制的扬弃,而不是摒弃。     

Globalization,State Restructuring and Innovation in European Water Management Systems: Reflections from England and Wales

Since the mid-1990s the notion of 'hollowing out' has been increasingly used within debates about the changing role of the nation-state in the management and regulation of public services. This paper is concerned with the impact of the various processes of hollowing out on innovation actions in the privatized water sector, particularly in terms of the changing drivers for innovation and the reconfiguration of public and private sector roles across Europe. In order to develop a more detailed case study of English water management, we draw on the Innovation Systems literature, regulation theory and globalization debates to locate a shift from a hierarchical and insular national system in England pre-privatization to a more complex and diffuse system after 1989. In common with some of the more sophisticated accounts of hollowing out we demonstrate that the role of the nation-state in shaping innovation decisions has not necessarily diminished, rather it has been reconfigured in response to various social, economic and environmental factors.     

The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions

In this paper we analyze the effect of infrastructure on the cost and productivity performance of the private productive sector of Spanish regions over the period 1980–1993. We use a dual approach based on cost functions that allows us to recover the usual parameters estimated with production functions. In addition, we obtain rates of return and cost elasticities of production factors at the regional level. Our framework explicitly considers that some factors are quasi-fixed and their volume can differ from their optimal endowment levels. Our results indicate that the public sector has contributed significantly to enhance productivity and reduce costs in the private sector of almost every Spanish region. Nevertheless, there is still scope for the government to continue its investment efforts, given that there remains an appreciable gap between observed and optimal public capital, and we find that in the long run, public capital promotes private investment.     

Informal markets and global value chains – the disembedding of Romanian dairy smallholders

The Romanian dairy-farming sector is marked by subsistence and semi-subsistence farms. Through consolidation in the retail and dairy sector, the price pressure has moved toward producers of raw milk. Through new European, national and private standards and global actors tapping into the Romanian market this development is reinforced. At the same time, the smallholders, formerly accepted to be acting on an informal level, cannot access their main distribution channels anymore. Additionally, through several legal constraints being developed since Romania’s accession to the European Union, the smallholders are neither able to issue invoices, nor to access certain subsidy programmes as they are not considered juridical persons. This article focuses on the consequences of this disembedding of farmers. The peasants are pushed toward informal activities or value chain positions, in which they do not have any bargaining power with the globally sourcing intermediaries they are supplying. The contemporary approaches of global value chains and global production networks build the theoretical framework for the study. Here it is argued that informal markets must be included into these approaches more concisely.     

Building a Venture Capital Market in Vietnam: Diffusion of a Neoliberal Market Strategy to a Socialist State

Abstract

Vietnam’s venture capital (VC) industry took shape in the late 1990s during a period of exceptional economic growth in the country and the development of its high-technology sector. High growth rates and technological advances have typically coincided with both strong VC market activity and state support of equity financing. This, however, has not been the case in Vietnam. In this article a policy diffusion framework is used to investigate the international and domestic origins of Vietnam’s nascent VC policies, and how they became part of the agenda of the Communist Party of Vietnam (CPV) as credit-based, rather than equity-based, solutions. The article argues that Vietnam’s heterodox approach to VC policy results from both external forces from donors and from domestic factors. In particular, Vietnamese policymakers have a preference for credit-based SME financing solutions and Vietnam’s official development assistance providers diffuse expertise on loans, not equity investments, to the Socialist Republic. The only donors recommending VC and equity-based financing in Vietnam have gone “around the state” rather than through it by working directly with the private sector. As a result, Vietnam’s SME financing initiatives have significantly diverged from international VC policy patterns.     

Collections of industrial and product design: a pathway for improved economic development connections among cultural institutions

This research investigates US cultural institutions housing collections of industrial and product design (IPD) and explores how IPD are collected, curated, and exhibited to uncover the barriers and opportunities that exist in connecting these collections to economic development. Based on key person interviews with nine institutions, this inquiry finds the collections generally are not externally integrated as a local or regional economic development asset. The full depths of these collections are somewhat concealed within the institutions because of their curation across departments or through a broader Decorative Arts lens. Using a framework of arts and culture research and development, this article argues that IPD collections represent an opportunity for greater engagement of cultural institutions in culturally oriented economic development strategies that pair their expertise and assets with those of the private sector.     

Knowledge Networks as a Regional Development Resource: A Network Analysis of the Interlinks between Scientific Institutions and Regional Firms in the Metropolitan region of Hanover,Germany

The debate on regional innovation potentials has concentrated in recent times upon the topic of regional knowledge networking. This article presents the findings of the first phase of a detailed network analysis of the cooperation relations between scientific institutions and firms in the “metropolitan region Hanover-Brunswick-Göttingen”. The research concentrated on the regional and supra-regional cooperation relations of approximately 500 science establishments of the region, including their interlinks with private sector firms. This analysis of a polycentric metropolitan region's knowledge networks in different fields of competence produced detailed information on the density of knowledge interlinking within the region, on the degree of connectivity between the region's scientific institutions and private sector firms, and on central network nodes within the regional innovation networks. The case study exemplifies the methodical approach of a regional network analysis and emphasizes the role of knowledge networks as a development resource which is of particular relevance to the region's innovation capacities.     

Assessing Umm el-Jimal’s Potential for Heritage Tourism

The quality of Jordan’s archaeological heritage resource for tourism is widely acknowledged, but heritage authorities have hardly begun to explore and develop their tourism potential. Nonetheless, the tourism industry in Jordan is a leading activity for the economy countrywide. Jordan’s tourism and heritage management have undergone quiet and basic improvement in recent years. This paper seeks to assess the heritage tourism potential of the archaeological site of Umm el-Jimal. It addresses the question of what potentials and values the site possesses, and what obstacles heritage and tourism management need to tackle to enable its development. To achieve this, current heritage practice in the management of the archaeological site of Umm el-Jimal is investigated. The methodology employed by the researchers comprised an assortment of research techniques including meetings, consultations, interviews, surveys, observation, alongside a literature review on various related topics and heritage management studies. The analysis of the study revealed that Umm el-Jimal has substantial heritage tourism potential and diversified values that have not yet been utilized due to the presence of a variety of hindering factors. Primarily, these are lack of tourist facilities, a backlog of heritage conservation and insufficient methods of interpretation and presentation. Combined, these factors hold back heritage tourism development of the site. Finally, it is recommended that the collaboration between the different interested parties at both public and private levels with the diverse stakeholders such as local people, private sector is imperative to make use of the heritage tourism potential of the site and alleviate the obstacles to successful development.     

The European Policy on Water Use at the Urban Level in the Context of the Water Framework Directive. Effectiveness,Appropriateness and Efficiency

The current European policy on water resources use in cities is undergoing radical reform in an attempt to confront the water quality problems and the dramatically intensified water scarcity. Among the most elaborate documents concerning current water policy is the Water Framework Directive (WFD), which spells out the targets of water policy at the European level. The confrontation of water scarcity, deterioration in quality, and the reduction in costs of the water supply industry emerge as decisive principles of the new European policy on water use in cities. These targets are currently assimilated in the agendas of national water policies in almost all European countries. To achieve these objectives several policy instruments have been applied in Europe. The more prevailing instruments are: demand management, privatization of water companies and efficient/full cost pricing of water use. The present article aims at systematically evaluating the effectiveness and efficiency of the current water policy for urban systems, by examining the coherence of its instruments as well as their appropriateness for achieving the policy's targets. To start with, the paper presents an elementary economic analysis of the current water policy. The effects of the most common policy instruments are systematically traced in the framework of economic analysis. Next, three indicative case cities are presented and examined. As it turns out, however, the results of the implementation of the main instruments are contradictory. This drastically reduces the effectiveness of the water policy. We indicate that these contradictory effects are inherent in the water policy and originate in the lack of appropriate social processes and institutions for the management of natural resources.