ABSTRACT
The water supply and sanitation (WSS) sector finds itself in the limelight nowadays. The increased visibility of the WSS sector has several reasons, which all can be largely traced to the increasing demand for the product that the sector generates: drinking water. The need for water is felt more harshly as populations continue to increase, putting the supply of sufficient quantity and quality of water in the centre of attention. Since the 1950s world population has doubled and water use has even tripled; yet the quantity of available fresh water remains equal to the amount one million years ago (Dalhuisen et al., 1999). The demand for water is expected to continue to increase as the world’s population will further grow from 6.5 billion today to 9.1 billion in 2050 (UN, 2007). Over the last two decades the international WSS sector has witnessed major institutional changes. The large-scale adoption of the neo-liberal agenda by national, regional and local policy makers dramatically changed the institutional landscape of the WSS sector. The increased involvement of private parties and the stimulation of competition implicated a pronounced shift in the traditionally public and monopolistic character. This shift has spurred a body of research on the value and effects of the neo-liberal institutional changes. To-date, despite the large quantity of studies, the available empirical evidence is less robust than one would hope for, both in quality and in scope. This thesis can be considered as a contribution to the existing body of knowledge on the effects of neo-liberal institutional changes in the WSS sector. It particularly contributes by using an alternative approach compared to the majority of existing studies. The research objective is achieved by undertaking a research approach based on notions from New Institutional Economics (NIE) and strategic management literature. Through the use of a testable analytical path model the relations between institutional changes, changes in conduct (strategies), and changes in performance of WSS providers are better understood.
