Managerial ownership and urban water utilities efficiency in Uganda
Dorcas Mbuvi & Achraf Tarsim
#2011-036
This paper assesses the impact of the early 1980s neoliberalistic reform
strategies in urban water distribution in developing countries. It
examines in particular, the technical efficiency of two heterogeneous
urban water utility-groups in Uganda. Performance is considered in light
of the key urban water sector objectives that are to universally
increase qualitative water coverage and enhance utility revenue. Using a
two-staged bias-corrected metafrontier based on the data envelopment
analysis estimators, the public-private (than the public-public) owned
utilities are found less efficient. Efficiency differences between both
groups are further linked to utilities scale of operation and market
capture capabilities among other factors. The paper urges policy makers
to strengthen public sector capabilities as a development policy
solution for inclusive quality water services access among other basic
public utility services in Uganda, Africa and the developing countries
in general.
Keywords: Efficiency, managerial ownership, non-parametric, Uganda,
urban water supply.
JEL classification: C14, H41, L95, Q25