By Quentin Wodon
''During the 1990?s a few nations in Latin the US together with Argentina, Bolivia and Chile, constructed guidelines considering application area liberalization via elevated inner most zone participation. This concentration resulted from the popularity that total caliber and availability of prone have been insufficient. Infrastructure reform is inexorably associated with poverty relief and for that reason needs to be rigorously developed and enacted.
This e-book presents sensible guidance and recommendations for infrastructure reform that lead to entry and affordability for the negative. Accounting for Poverty in Infrastructure Reform: studying from Latin America?s adventure comprises research of the trade-offs that has to be made among potency, fairness, and monetary expenditures of the choices. It features a new version for reform that includes 3 major elements - rules, legislation, and provision which while correctly balanced reduce the dangers linked to reform.''
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Additional info for Accounting for Poverty in Infrastructure Reform: Learning from Latin America's Experience
Requires careful regulation, as dominant utility may lack incentives to collaborate. Alternative suppliers may form local cartels. Source: Authors. 40 Accounting for Poverty in Infrastructure Reform connection targets. Connection targets are a useful first step in clarifying the meaning of a USO for customer groups that are physically isolated from the network. Targets may also be necessary to ensure that coverage is provided to customer groups that are unprofitable to serve. Ideally, the targets specify the exact number of households, their geographic location, and the date by which they should be connected.
Cross-subsidies toward new connections are in many cases more likely to reach the poor, because those lacking connections are predominantly poor. Promoting Access 47 • By reallocating a significant proportion of the cost to higher-income households (those who already have a connection), the private operator’s payment risk can be reduced. • Cross-subsidization circumvents the need for government funding, thereby retaining the sector’s financial self-sufficiency. • Cross-subsidization may be justified on ethical grounds if the richer groups of households that are already connected benefited from their connection at highly subsidized rates when the utility was still a public monopoly.
Depending on the characteristics of the property, the overall cost in 1995 ranged from $251 to $637 per household for water, and $856 to $891 for sewerage. These costs included an infrastructure charge for secondary network expansion apart from the connection fee. The concessionaire was required to allow customers to spread the infrastructure charge over a two-year period; however, this still represented an average cost of $44 per month, or a fifth of the income of a poor household. The high level of the charges generated hostility from customers.
Accounting for Poverty in Infrastructure Reform: Learning from Latin America's Experience by Quentin Wodon