However, the ability of the international private sector to bring financial and economic benefits to bear can be dependent on some quite onerous preconditions. It is usually essential that effective regulatory control is established, that the partnership arrangements provide clarity and predictability, that the process of procurement is transparent, that the agreement is monitored, and that penalties are enforced. All of these preconditions point towards a changing role of the municipality, in particular the capacity of the municipality to provide the level and quality of oversight required.
Irrespective of its form, if the private sector is to deliver benefits to the poor, much of the onus to create a partnership and an environment in which these benefits can come to fruition lies with the municipalities. It is not the private sector's role to look out for the poor. The need for a more strategic municipal vision - to coordinate and integrate the potential assets of the private sector - is paramount, as is the role of the public sector in ensuring adequate regulation and resolving crucial constraints that hinder service improvements, such as land tenure. The public sector must also recognise the role of informal sector providers and other organisations in the development of more inclusive partnerships.