The institutions of water service delivery: Privatization and participation in Greater Buenos Aires, Argentina

Water, as an economically valuable natural resource and a human right, has gained a great deal of attention in recent years. An increasing demand and decreasing supply has rendered much more difficult the equitable distribution of this resource and made much more important its efficient distribution. Central then, are the institutions that influence upon the distribution of water. This thesis attempts to shed some light on these institutions as they have developed in urbanized area of Greater Buenos Aires in Argentina.;It is hypothesised that if water distribution institutions are developed so as to take into account the genuine interests of the beneficiaries through direct participation, not only will there be direct improvement in livelihoods due to access to the resource, but the social capital that comes out of participation can have spill-over effects that may further improve the welfare of the urban poor in particular.;In order to investigate this hypothesis, the formal institutions of the privatization process are analysed. It is found that the incentives generated by the current institutional structures are inadequate in ensuring the expansion of services to the poor and in encouraging active stakeholder participation. Also, three case studies from the region are used to show the difficulties and benefits of public participation in water service delivery.;The main conclusions that may be gleaned from this study are that effective government regulation is essential regardless of the mix of actors that are involved in water provision. Also, social capital and trust, both among stakeholders and among groups of actors, can be an important input into public participation and a valuable output. Careful analysis of the incentive structures that water institutions generate is necessary for the efficient, equitable and sustainable distribution of this most precious natural resource.