ABSTRACT

Private provision of essential services bears a heavier burden of evidence than public provision. 1 Essential or basic services include those needed for livelihood, health and dignity, especially water and sanitation, electricity and healthcare. Given the unique social contribution of essential services and the considerable risks involved in privatization, evidence of public-sector failure is not, by itself, sufficient justification to adopt private provision. Privatization advocates should therefore make an empirical case that the conditions for controlling market failure and promoting equity are actually in place before adopting private provision policies.