ABSTRACT
It is not surprising that, in many cases, municipalities are still unconvinced by the shift to private sector participation (PSP). For decades, many have accumulated a host of concerns over the whole idea of private sector involvement in basic service provision. Case study evidence suggests that some of this doubt is based on historical precedent – the very mention of ‘private sector’ conjures up images of monopolies and exploitative practices that ultimately lead to the public sector taking responsibility for basic services. Some of the doubt has been created through misinformation, hearsay and (sometimes inaccurate) assumptions. Other concerns have political foundations – the reluctance to allocate a large portion of municipal budgets and deplete the power of decision-making. Still other concerns are ideological – based on a fundamental opposition to market liberalisation and privatisation trends. However, some hesitations are due to the uncertainties surrounding costs and long-term benefits, particularly for disadvantaged groups.
