Profitability and the poor: corporate strategies, innovation and sustainability

Based on empirical evidence, the article looks at the implications of private sector participation (PSP) for the delivery of water supply and sanitation to the urban and peri-urban poor in developing countries, with particular reference to Africa and Latin America. More precisely, the article addresses the impact produced by multinational companies’ (MNCs) strategies, in light of the pursuit of profitability, on the extension of connections to the pipeline network. It does so by questioning the assumptions that greater private sector efficiency and innovation, together with contract design, will enable the sustainable extension of service coverage to low income dwellers. The strategies of the major water MNCs are considered both in relation to the global expansion of their operations and the adjustment of local strategies to commercial considerations. The latter might result in identifying proWtable markets, modifying contractual provisions, attempting to reduce costs and increase income, reducing risks and exiting from non-performing contracts. The evidence reviewed allows for re-assessing the relative roles of the public and private sectors in extending and delivering water services to the poor. First, the most far reaching innovative approaches to extending connections are more likely to come from communities, public authorities and political activity than from MNCs. Secondly, whenever MNCs are liable to exit from non-profitable contracts, the public sector has no other option than to deal with external risks aVecting continuity of provision. Finally, market limitations affecting MNCs’ ability to serve marginal populations and access cheap capital do not apply to well-organised, politically led public sector undertakings

Water privatisation

The article examines the expansion of private water companies since 1989 the withdrawal from developing countries from 2003 onwards, and the economic impact of privatisation. The analysis is set in the context of the historical development of water services in the north and the south, showing that the role of private water companies since the start of the 20th century has been historically limited and exceptional. The impact of water privatisation is considered in relation to the issues of investment, prices, and efficiency, drawing on empirical evidence from the north and developing countries in Asia, Africa and Latin America. Particular attention is given to France and the UK, where private water companies, for different reasons, are most established. The evidence from both north and south shows systematic underinvestment, monopoly pricing, regulatory gaming, and no significant efficiency differences between public and private sector operators. In conclusion, the article identifies institutional policies including fiscal constraints and lending conditionalities as key drivers of privatisation, and questions whether these can sustain privatisation in the water sector where historical experience indicates it is an inappropriate solution.

When the shift hits the critical fan: a Foucauldian analysis

In the past 15 years in the UK, the state has acquired powers, which mark a qualitative shift in its relationship to higher education. Since the introduction and implementation of the Further and Higher Education Act 1992, the Teaching and Higher Education Act 1998 and the Higher Education Act 2004, a whole raft of changes have occurred which include the following: Widening participation; the development of interdisciplinary, experiential and workplace-based learning focused on a theory-practice dialogue; quality assurance; and new funding models which encompass public and private partnerships. The transformation of higher education can be placed in the context of New Labour’s overall strategies for overarching reform of public services, as set out in the Prime Minister’s Strategy Unit’s discussion paper The UK Government’s Approach to Public Service Reform (2006). An optimistic view of changes to higher education is that they simultaneously obey democratic and economic imperatives. There is an avowed commitment through the widening participation agenda to social inclusion and citizenship, and to providing the changing skills base necessary for the global economy. A more cynical view is that, when put under critical scrutiny, as well as being emancipatory, in some senses these changes can be seen to mobilise regulatory and disciplinary practices. This paper reflects on what kinds of teaching and learning are promoted by the new relationship between the state and the university. It argues that, whilst governmental directives for innovations and transformations in teaching and learning allegedly empower students and put their interests at the centre, reforms can also be seen to consist of supervisory and controlling mechanisms with regard both to our own practices as teachers and the knowledge/ learning we provide for the students.