Mary M. Shirley

The state-owned sector in developing countries tends to be large, diverse, and often - when the Bank gets involved - in a state of illiquidity or on the verge of collapse. While approaches have to fit individual circumstance, experience has shown that the more successful reforms have begun eliminating major price distortions (including interest and exchange rates), halting most new investment, and cutting off most subsidies. Successful implementation depends on proper phasing. While this varies from case to case, one workable sequence is: (i) clarify the state-owned enterprises' (SOE) true situation by eliminating gross price distortions, cutting most subsidies, curbing new investment, and ending preferential access to credit; (ii) begin to rehabilitate, sell or liquidate the 10 to 15 key SOEs that are the biggest budget drain or bottlenecks; (iii) increase competition and eliminate discrimination between public and private firms, and introduce efficiency targets for monopolies; (iv) put the financial system on a market-oriented basis and require SOEs to compete for finance without guarantees in most cases; and (v) liquidate, sell or rehabilitate as needed the remaining enterprises.

Lessons from World Bank Lending

The Reform of State-owned Enterprises

Even managers critical of Pakistan's new performance evaluation system consider its targeting and bonus system a powerful incentive to improve efficiency.

Evaluating the Performance of Public Enterprises in Pakistan

One billion people in the world lack safe drinking water and almost 2 billion lack adequate sanitation services. As a result millions suffer and die every year from water and sanitation related diseases. Poor management and inefficient investment are often responsible for this situation, and countless past attempts at reform have accomplished little. Recently some developing countries have tried to reverse years of mismanagement of their water and sewerage systems by auctioning contracts to private operators. Why do countries that have tolerated mismanagement for decades develop a thirst for efficiency? What are the results of their efforts to change? What determines success or failure? This book fills a gap in the literature by systematically answering these important questions. It does so by analyzing reforms in six developing country capitals -- Buenos Aires, Argentina; Lima, Peru; Mexico City, Mexico; Santiago, Chile; Abidjan, Cote d''Ivoire; and Conakry, Guinea - and the United States in the 19th century. It not only assesses economic factors, but also explores the roles of laws, politics and norms. It provides an economic theory of water that encompasses institutional, political and economic aspects of reform.

The Economics and Politics of Urban Water System Reform

Thirsting for Efficiency

Claude Ménard

New Institutional Economics (NIE) has skyrocketed in scope and influence over the last three decades. This first Handbook of NIE provides a unique and timely overview of recent developments and broad orientations. Contributions analyse the domain and perspectives of NIE; sections on legal institutions, political institutions, transaction cost economics, governance, contracting, institutional change, and more capture NIE's interdisciplinary nature. This Handbook will be of interest to economists, political scientists, legal scholars, management specialists, sociologists, and others wishing to learn more about this important subject and gain insight into progress made by institutionalists from other disciplines. This compendium of analyses by some of the foremost NIE specialists, including Ronald Coase, Douglass North, Elinor Ostrom, and Oliver Williamson, gives students and new researchers an introduction to the topic and offers established scholars a reference book for their research.

Handbook of New Institutional Economics

Lixin Colin Xu

Evidence from China

The Empirical Effects of Performance Contracts

Consisting of 30 concise chapters written by top scholars, this Research Agenda probes the knowledge frontiers of issues long at the forefront of New Institutional Economics (NIE), including government, contracts and property rights. It examines pressing research questions surrounding norms, culture, and beliefs. It is designed to inform and inspire students and those starting their careers in economics, law and political science. Well-established scholars will also find the book invaluable in updating their understanding of crucial research questions and seeking new areas to explore.

Mary M. Shirley

Books

Your next favorite book is out there