Resumen de The public choice of urban water supply management
This dissertation is divided into five chapters. It should be noted that the first three chapters which follow are adaptations of articles which have been published or accepted for publication in specialist journals. The fourth chapter is an adaptation of a work in progress published in Working Papers in Applied Economics (WPAE).
Chapter 1. Analysis of urban water management in historical perspective: evidence for the Spanish case The level of public and private involvement in economic activity in societies has changed over time. One may talk about the existence of a cyclical trend in which the most important periods of public management are replaced by periods in which private management dominates the situation. This phenomenon may also be observed in local areas. Some authors have pointed out the existence of an alternation in the provision of municipal services, resulting in periods dominated by public management compared to other stages dominated by private management. In order to illustrate this cyclical trend at local level, this chapter intends to analyze the evolution of the governance of the Spanish water supply since the mid-19th century to the present day. Recent evidence from the industry suggests the possibility that a further change in the trend currently be being witnessed.
Chapter 2. Reconsidering privatization in the governance of water in Spain Spain liberalised the governance of municipal services after implementation of law 7/1985 of 2 April 1985, which regulates local government. Since then, many Spanish municipalities have chosen to privatise their urban water service. However, complete privatisation of the water service is now being questioned. The number of water services becoming completely privatised is decreasing and some local governments have changed their initial decisions and reverted to public management. This article explores why privatisation in Spain is being reconsidered. The process of privatisation of water services in Spanish cities and the causes of the re-governance process that some local governments have undertaken are reviewed. With reference to the option of privatisation, different management alternatives chosen by local governments are also considered, as new forms of governance such as mixed public-private partnerships and associationism are steadily acquiring an important role.
Chapter 3. Do ideological and political motives really matter in the public choice of local services management? Evidence from urban water services in Southern Spain According to the literature, local government decisions regarding the management of municipal services are mainly based on pragmatic reasons, ideological and political motives having little influence. However, in some services, such as the urban water service, ideological and political factors could play a more relevant role when it comes to deciding the management alternative. This chapter studies the influence of ideological and political motives on the choice of management for the urban water service in 734 municipalities located in the south of Spain, with data for the period 1986-2006. Our contribution is twofold. Firstly, we use a considerably more detailed set of variables to represent ideological and political motives than previous research. Secondly, the variables that explain local politicians' decisions are observed at the time decision-making occurs, rather than at a later date. We find that, beyond pragmatic reasons, ideological and political motives also matter in explaining the decisions about the management of local water services. Concerning ideology, the two largest parties disputing the centre of the Spanish political spectrum employ similar strategies when choosing a management alternative. However, the city councils governed by the most left-wing party are more reluctant to privatize. Regarding political factors, variables such as stakeholder lobbying affect local government decision making.
Chapter 4 The public choice of urban water services management: a multi-criteria approach Local governments have to take decisions in increasingly complex contexts. Among other decisions, in countries where it is permitted by the legal framework, local policymakers have to choose the type of management of local public services. The importance of the urban water service and the variety of criteria to be considered in the management choice make it advisable that local government should consider the existing tools to rationalize the decision-making. Different Multi-Criteria Analysis (MCA) facilitates decision-making processes in situations where several criteria must be taken into account. This chapter applies an Analytic Hierarchy Process (AHP) to analyze the decision on the urban water service management in Granada, city in southern Spain. An assessment through an ex-post analysis is aimed to conclude whether the choice was appropriate and, therefore, whether or not the City Council should reconsider its past decision. The main conclusion is that the decision was consistent.
