When markets fail to deliver : an examination of the privatization and de-privatization of water and wastewater services delivery in Hanilton, Canada
By: OHEMENG, Frank K
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Contributor(s): GRANT, John K.
Material type: 
ArticlePublisher: Toronto : IPAC, September/Septembre 2008Canadian Public Administration 51, 3, p. 475-499Abstract: The emergence of the "New Public Management" (NPM) and its faith in markets led governments to search for alternative methods in the delivery of public services. One of the most popular methods was privatization. The rationale behind the choice of privatization is based on what Charles Wolf describes as "non-market failure." This article argues that the market may not be as efficient as its proponents have asserted, especially when there is a monopoly over service delivery. This has been the case in many municipalities, in some developed countries, where privatization of water service delivery has reverted to public delivery. Using the City of Hamilton's experience with its water and wastewater services as an example, the authors' finding is that the nature of the good to be delivered is essential in determining whether the "market" or the "public" provides the best method of service delivery
The emergence of the "New Public Management" (NPM) and its faith in markets led governments to search for alternative methods in the delivery of public services. One of the most popular methods was privatization. The rationale behind the choice of privatization is based on what Charles Wolf describes as "non-market failure." This article argues that the market may not be as efficient as its proponents have asserted, especially when there is a monopoly over service delivery. This has been the case in many municipalities, in some developed countries, where privatization of water service delivery has reverted to public delivery. Using the City of Hamilton's experience with its water and wastewater services as an example, the authors' finding is that the nature of the good to be delivered is essential in determining whether the "market" or the "public" provides the best method of service delivery
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