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More public rescues for more private finance failures
March 2010
A critique of the EC Communication on PPPs, challenging the scale of state aid offered to PPPs, the role of PPPs in the economic recovery strategy for the EU, and drawing attention to the damage done to public authorities by 'innovatice finacing mechanisms' such as interest rate swaps.
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The Future of Energy: Are Competitive Markets and Nuclear Power the Answer?
February 2010
The inaugural lecture of Professor Stephen Thomas at the University of Greenwich, 4th February 2010. It examine whether further pursuit of competition in energy markets and expansion in the role of nuclear power can be the main elements in a policy to meet Britain’s future energy needs.
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Waste management in Europe: framework, trends and issues
February 2010
This paper reviews major factors affecting the waste managment sector in Europe, including EU legislation, ECJ rulings, the economic crisis, outsourcing and municipalisation, and employment, including disputes and pay and conditions.
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Challenges to Slovakia and Poland health policy decisions
February 2010
Investment treaties, and possibly the EU Treaty itself, are being used by multinational companies Penta and Eureko to try and force the Slovak government to pay compensation for reversing health privatisation. Eureko has already taken a similar case against Poland.
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Replacing failed private water contracts
January 2010
Failed private water concessions have been terminated and replaced with public sector operations in many countries. The paper reviews the negotiating processes involved in these terminations. This paper was prepared for a seminar in Jakarta 20th January 2010
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Infrastructure, the crisis, and pension funds
December 2009
Infrastructure investment has been an important element in the economic stimulus packages introduced to try and deal with the effects of the recession. It is reinforced by the need to develop sustainable energy sources, and by the development needs of countries in the south. Public sector finance – tax revenues and bonds – remain the main way of financing such investment.
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Global experience with electricity liberalisation
December 2009
This paper examines global experiences with electricity liberalisation relevant to the new legislation on electricity passed by the Indonesian parliament in September 2009. It covers experiences in the UK, EU, USA and ten major developing economies. This paper was prepared for a seminar in Jakarta 19th January 2010
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Private equity, productivity and earnings
July 2009
A detailed study in the USA shows that workers experience a relative fall in earnings after a takeover by private equity. Also, companies bought by private equity are at great risk of defaulting on their debts in the next 2 years.
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The private sector in water in 2009
March 2009
A critical survey of the impact on public water of water multinationals, local private companies, and water-consuming multinationals.
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Crisis note 2: A crisis for PPPs?
January 2009
The credit squeeze and recession are combining to make PPPs almost impossible to finance, anywhere in the world. Traditional government borrowing and procurement can still be used to implement infrastructure programmes.
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Economic crisis and public services - note 1
December 2008
The paper examines the impact of the economic crisis on public services, including government reponses and implications for companies operating in public services.
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Protecting workers in PPPs
October 2008
PPPs create problems for employees. The paper reviews these problems and ways of protecting workers, in the context of EU law and ILO conventions.
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Public-Private Partnerships (PPPs) - summary paper
October 2008
The summary of three reports on PPPs in Europe, including a critical overview, a study of alternatives, and a study on the protection of working conditions, in the context of EU law on procurement and other subjects.
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The illusions of competition in the water sector
September 2008
The paper provides a critical review of the role of liberalisation and competition in the water sector, based on empirical evidence from the UK and internationally. The paper is submitted as evidence to the official reviews of competition in water sector in England and Wales.
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Poor Choices
September 2008
A major study of the problems faced by the poor in the market for seven essential services in the UK - energy, food, housing, water, telecoms, transport, and financial services. Together these represent 60% of spending by the poorest 30% of households.
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Regional disparities in the utility sector services in Russia
July 2008
Full cost recovery policies in water and other utilities in Russia have made services increasingly unaffordable, without leading to improved investment. Inequalities between income groups and regions have become greater. Sound regional policies require publicly financed investment and strengthening of local government capacity.”
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Care Policies and Labour Markets
March 2008
Changes in the nature of funding, in the care sector, are influencing the development of a social care labour market. Migration plays a role in ensuring the provision of care workers in many European countries.
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Sewerage Works
March 2008
Without sewers, more children die, and those who survive suffer in terms of physical growth and educational attainment. Donor policies and advice on sewers are wrong in three key respects. Sewers in cities are not optional extras but essential. Sewers need to be financed by taxation not user charges. And sewers in cities are affordable for most countries, many of whom are already investing in sewers in their cities. The aid neededis concentrated in a few countries, and this is affordable for rich countries.
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Private equity and employment – the Davos/WEF/Harvard study
February 2008
The World Economic Forum at Davos has published a major study showing that workplaces of firms taken over by private equity have 10% less employees 5 years after the takeover, than other similar workplaces. The rate of plant closures, opening, acquisitions and disposals is twice as high as in other firms, and the net effect is still a job loss of 3.6%-4.5% after only 2 years, compared with other firms. Firms taken over by private equity are also more likely to go bankrupt than publicly quoted firms.
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Water in Europe
January 2008
An overview of trends in the water sector in Europe and the companies involved
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Electricity companies in Latin America 2007
October 2007
This report surveys the multinational, local, and private equity companies involved in electricity supply in Latin America, and discusses some continuing issues, including compensation claims, and the role of public finance in restructuring and guaranteeing private sector activities, as well as renationalisations.
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Water privatisation and restructuring in Latin America, 2007
September 2007
A detailed survey of developments in water in south America, including the retreat of the multinationals, the development of public sector alternatives, and persistent problems with compensation claims and development bank policies.
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Waste management companies in Europe 2007
August 2007
The paper reviews the international companies operating in the waste sector in Europe and recent trends in patterns of ownership, including private equity.
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Unhappy returns to investors in private equity
June 2007
Private equity firms take large profits through fees but do not deliver exceptional returns to investors such as pension funds. Publicised returns ignore many 'living dead' funds, and the impact on investors of the PE firms own fees.
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Water companies in Europe 2007
April 2007
The paper reviews the international companies operating in the water sector in Europe and recent trends in patterns of ownership.
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Water as a Public Service
January 2007
A review of the history, economics and politics of public water services, including the role of capital finance, labour, and democratic participation.
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Electrifying Africa
January 2007
A review of the need for electricity in Africa, experiences of privatisation, and the political and economic potential for development through the public sector.
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Evercare/ United Health Group briefing paper
December 2006
The paper examines some of the issues raised by the recent involvement of Evercare, part of the US company, United Health Group, in a Department of Health (England) pilot initiative on the use of a case management approach to keep frail, older people out of hospital.
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Water and electricity in Nigeria
September 2006
The report reviews privatisation solutions promoted by the World Bank and the IFC, and critical responses to them.
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The impact of public sector reforms on public sector workers
May 2006
The paper presents some initial findings from a survey of public sector workers, in a number of countries in Europe, Africa, North America, Latin America and Asia, and how they have been affected by policies of liberalisation in relation to wages, working conditions and other forms of socio-economic security.
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Aid and trade in water and electricity in Tsunami-affected countries: India, Indonesia, Sri Lanka, Thailand
December 2005
In the four countries most affected by the tsunami - India, Indonesia, Sri Lanka and Thailand, multinational companies have been pursuing lawsuits to claim compensation for failed private projects in water and electricity - compensation which could cost the countries more than the official aid for the Tsunami emergency from the USA, Canada, UK, Germany, France, the European Union, and China combined . Despite strong public opposition, the World Bank and other donors continue to promote privatisation in both water and electricity in these countries.
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The European Union Gas and Electricity Directives
October 2005
This report examines experience of the EU's electricity and gas directives in th major EU member states and contributes to the assessment of the Directives that the Commission must carry out in 2006
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The relative efficiency of public and private sector water
October 2005
A range of empirical evidence now shows that there is no systematic significant difference between public and private operators in terms of efficiency or other performance measures. Due to the unsupported assumption that private companies are more efficient, policies have become seriously imbalanced.
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Electricity privatisation and restructuring in Latin America and the impact on workers, 2005
September 2005
The process of electricity privatisation and liberalisation in Latin America has led to loss of jobs, insecurity of employment, and worse conditions for electricity workers. Outsourcing has been a major problem. It has also contributed to a number of social and economic problems, including problems of price levels, reliability, and government guarantees.
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State Aid and Public Services in Europe
September 2005
This critique of the EC 2005 proposals on state aid and the implications for public services presents the historical and legal context, their impact on the expansion of private sector activity in the market for public services, a critical analysis of the proposals, and a discussion contrasting the route of encouraging competitive tendering with the possibility of exempting public services operating in the general interest.
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Public resistance to privatisation
in water and energy
June 2005
The process of privatisation in water and energy has proved widely unpopular and encountered strong political opposition. This paper examines the role of this opposition in delaying, cancelling, or reversing the privatisation of water and energy. Development in Practice, Volume 15, Numbers 3 & 4, June 2005.
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Public- public partnerships in health and essential services
May 2005
This review paper was commissioned jointly by the Southern African Regional Network on Equity in Health (EQUINET) and the Municipal Services Project (MSP) to gather information to act as a baseline “concept paper” for additional research by the MSP and EQUINET. It aims to provide information on the state of research on “public-public partnerships” (PuPs), an analysis of the conceptual and logistical framework of PuPs that have been implemented, and a discussion of the lessons to be learned from PuPs in southern Africa and elsewhere.
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Care Services in Europe
February 2005
Analysis of care policies, provision by companies in Europe and effect of policy changes on care workers
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The UK Nuclear Decommissioning Authority
December 2004
This report examines the projected task and funding of the UK Nuclear Decommissioning Authority, which will formally take over the UK's nuclear liabilities on April 1 2005
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Private and public interests in water and energy
December 2004
Article in Natural Resources Forum 28 (2004) 268–277 November 2004 on social risks of privatisation of water and energy. Based on empirical evidence from developed, transition and developing countries, the article looks at how the introduction
of private operators’ interests into the water supply/sanitation and energy sectors may conflict with public interests in socioeconomic,
environmental and political dimensions.
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La electricidad en América Latina, 2004
July 2004
Este documento tiene el propósito de exponer las actividades de las EMN en servicios privados de electricidad de América Latina, y al mismo tiempo definir algunos de los problemas clave que afectan el desarrollo del sector. El documento acompaña al panorama general elaborado por la PSIRU de la privatización y liberalización en todo el mundo.
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Electricity in Latin America, 2004
July 2004
The paper aims to present the activities of the multinational companies in privatised electricity operations in Latin America, and to identify some of the key issues which affect the development of the sector. It covers the multinationals, with brief information on their origins and their current policies towards Latin America where known. It also lists the multinationals which have formerly invested in Latin America but have now left. The paper looks at key issues and trends, including the development of the policies of the governments of Argentina and Brazil; the scale of resistance to privatisation in Latin America, and the new statements of position from the IMF and the World Bank.
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Privatising other people's water - the contradictory policies of Netherlands, Norway and Sweden
July 2004
The Nordic countries, including Norway and Sweden, are famous for their strong welfare state and public services. Stockholm’s public sector water company hosts the world’s leading annual conference of water, in a week that celebrates its achievement of cleaning the waters of Stockholm harbour. The Netherlands is equally famous for its water services, managed and financed through a network of public authorities, banks and managements. In all three countries, not surprisingly, there has been almost universal resistance to the idea of allowing private water companies to run this public service – in the Netherlands, a proposed law to make private sector water supply illegal has received backing from nearly all parties.
Yet in all three countries, the agencies responsible for aid to developing countries are financing and supporting programmes that are promoting water privatization in developing countries. This paper presents the details of these aid policies, and discusses the problems raised by the policies themselves and the contradictions with their domestic water supply policies.
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The British Model in Britain: Failing slowly
March 2004
In 1990, Britain became the first developed country to reorganise its electricity industry to run on competitive lines. The British reforms are widely regarded as the benchmark for other reforms and the model used provides the basis for reforms of electricity and other network industries around the world. The factors behind this perception of success are major reductions in the real price of electricity with no apparent reduction in service quality. This paper examines whether the high reputation of the British reforms is justified and whether these good results can be maintained. It concludes that the reputation is not justified and that serious problems are beginning to emerge.
The central question that must be asked is: have the British reforms resulted in the creation of efficient markets at the wholesale and retail level? On this criterion, the reforms have failed. The wholesale market remains illusory. Obscure long-term contracts, privileged access to the market and self-dealing within integrated generator/retailers have dominated wholesale purchases leaving the spot markets with minimal liquidity and unreliable prices. The failure to develop an efficient wholesale market places the onus on consumers to impose competitive forces on electricity companies by switching regularly. Small consumers will not do this and they are paying too much for their power. For the future, there is a serious risk that the electricity industry will become a weakly regulated oligopoly with a veneer of competition.
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Dogmatic Development: Privatisation and conditionalities in six countries
February 2004
This report looks at how conditionalities and pressures from aid agencies and development banks force developing countries to adopt privatisation policies in public services.
It focuses specifically on the sectors of water, electricity, and healthcare, in six countries: Colombia; El Salvador; Indonesia; Mozambique; South Africa; and Sri Lanka. It examines the impact of the requirements and policies of the International Monetary Fund (IMF), World Bank (WB), and other agencies including regional development banks, the European Commission (EC) and donor countries. It includes a specific examination of the various ways in which the UK’s Department for International Development (DFID) supports privatisation in these services.
It concludes that the pressures for privatisation have been strengthened through new structures of ‘globalised aid’; that they create serious limitations on independent decision-making by developing countries, and generate some strong political responses; and that policies of development banks and donor agencies, including DFID, should be reviewed to remove such pressures and ensure that policy-making in developing countries is determined by local democratic processes.
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Water finance - a discussion note
January 2004
This paper examines issues of financing water supply and sanitation systems, including:
- A critique of the ‘top down’ approach to water finance of the World Bank, the Camdessus report, and the water multinationals
- Proposing a different approach, based on a participatory, ‘bottom up’, local assessment of needs, and of the best means available for fulfilling them
- A discussion of different methods of raising investment finance for publicly run water systems
It does not attempt to identify a single best method of financing, but to indicate some of the possibilities which are available, together with actual examples of these options in practice.
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