Regulating the private provision of drinking water and sanitation services

Ever since the 1970s, the governm ents of the region have been transferring public com panies and other State institutions to the private sector in one m anner or another. Privatization has now spread to all sectors of the economy, including drinking water supply and sanitation services. Private sector involvement in the provision of these services offers potentially significant efficiency gains, but it will not, in itself, guarantee lasting welfare improvement unless these services are provided in a competitive market.