Organization of Public Utility Services Reflected by International Debates and New Organizational Schemes Cover Image

Közüzemi szolgáltatások szervezése a nemzetközi viták és új szervezeti megoldások tükrében
Organization of Public Utility Services Reflected by International Debates and New Organizational Schemes

Author(s): Gabor Lux
Subject(s): Politics / Political Sciences, Social Sciences
Published by: Központi Statisztikai Hivatal

Summary/Abstract: The formerly dominant model of managing public utilities came under intense scrutiny in the 1980s and 1990s, leading to new organisational forms based on PPI, private participation in infrastructure. These reforms of service delivery remain in the focus of vigorous debate, and the evaluation of the respective merits of the public and private sectors show radical differences in recent theoretical and empirical analysis. This paper reviews the differentiated consequences of service delivery reforms in light of international comparative studies. PPI leads to different outcomes among utility types; in developed vs. developing or post-socialist economies; in the different institutional contexts of different countries; as well as among more or less dense regions. Success or failure does not tend to manifest in extreme scenarios, but in real differences in efficiency. The majority position of international studies does not confirm the hopes invested in privatisation. Effective service delivery has more to do with establishing effective quality control and efficiency-based incentives in the public sector, or in innovative mixed delivery solutions combining the advantages of the private and public approach. However, the difficulties of institutional development, and the considerable path dependence of large systems highlights the difficulties of adapting good practice in a different institutional or territorial context.

  • Issue Year: 55/2015
  • Issue No: 01
  • Page Range: 28-45
  • Page Count: 18
  • Language: Hungarian
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