1 See Estache et al, 2000. See also references to the recent work of the Water and Sanitation Program.
2 Frequently, the 'vicious cycle of municipal infrastructure management' is stressed - that operating inefficiency causes poor service delivery, which results in low-cost recovery and then inadequate maintenance, deteriorating facilities, poor service delivery and operating inefficiency, etc. This theory does not draw attention to the role of externalities or to capacity deficiencies, focusing only on the financial causes of service deterioration.
3 See, for instance, Shafik, 2001.
4 To date, little of this private capital has gone to the poorest countries and an insignificant amount to the municipal level of government.
5 There are examples of well-managed water utilities, for example, in Chile and Botswana - achieved through the corporatisation of public utilities. In Zimbabwe, where network coverage is high, the Bulawayo City Council has itself established efficient management of water and sanitation services in the town.
6 Jackson, 2000.
7 The components of sector reform have been explained in terms of industry restructuring, regulation, cost-reflective pricing and PSP. Each of these components brings with it potential impacts and benefits - often confused with PSP. See Alexander and Estache, 1999.