Does Basic Services Privatisation Benefit the Urban Poor? Some Evidence from Water Supply Privatisation in Thailand

Abstract

Access to safe water and sanitation has been a development priority for decades. This is also included in the millennium development goal targets. Meanwhile, privatisation of water supply continues to be a subject of intense debate, particularly as to its effects on the urban poor. The arguments for and against often reflect the intellectual divide between socialist ideals and neo-liberal pragmatism. Key issues are access, quality and price. This paper reports findings from an investigation of Thailand’s first water supply privatisation scheme implemented in 1998. Household-level data for the poor, defined by community and income status, show a significant improvement in access to piped water despite an increase in the connection cost and monthly charges. The associated benefits from access include improved water quality and service. A promising plus is the prospect of improvement in tenure status for the households living in informal settlements.