The importance of understanding the linkage between the institutional framework and the organizational arrangements for performances: the case of the water sector in Hô Chi Minh City |

The importance of understanding the linkage between the institutional framework and the organizational arrangements for performances: the case of the water sector in Hô Chi Minh City

Synopsis:

The paper presented treats of the institutional and organization arrangement in the water sector in urban center in developing countries using the New Institutional economics framework. Two theories form the analytical framework, namely the transaction cost theory and the agency theory.

In this paper, Ms. Pichot first looks at the consequences of the institutional setting and orgaization model of the water sector on its costs and its financing capacities on the long run, which are reflected in the performances of the sector. The analyze focuses on the case of Ho Chi Minh city, using data she has gathered during 5 months of field research.

After a review of the literature (North, Williamson, Dinar and Saleth, etc), Ms. Pichot will describe the particular institutional and organizational setting of the cit, and the rationale for it. Indeed, organization is more and more fragmented between the production utilities through PPP, SAWACO the water operator and the equitized distribution subsidiary companies, all regulated by the ad hoc technical city departments under the people committee. This multi-level organization, which both multi-agents and multi-principles, implies a complex coordination between stakeholders with diverging interest in some cases. What are the costs of this setting and multifaceted coordination, how the gaps in governance uncovered translate into financing capacities are considerations that constitute the heart of this paper.

The final part draws on lessons for the future design of the water sector arrangements.

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Speaker(s):

Héloïse Pichot, PhD student in institutional economics, University Paris I Panthéon-Sorbonne

Date:
Tuesday, 20 March 2012
Time:
12.15 p.m. - 1.30 p.m.
Venue:

Seminar Room 3-4
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road
Singapore 259772

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