The debate on alternatives to privatised ownership models for public services is back on the academic and political agenda. What's driving remuncipalisation and why is it a better alternative than private provision?
TNI is advocating Public Public Partnerships (PUP) as an alternative policy to privatisation or to Public-Private Partnerships in water services as well as a concrete tool to work with partners to reform public water companies/utilities, improve services and realise the right to water on the ground. A public-public partnership (PUP) is simply collaboration between two or more public authorities or organizations, based on solidarity, to improve the capacity and effectiveness of one partner in providing public water or sanitation services. They have been described as a “peer relationship forged around common values and objectives, which exclude profit-seeking”. PUPs avoid the risks which are typically encountered in public-private partnerships: transaction costs, contract failure, renegotiation, the complexities of regulation, commercial opportunism, monopoly pricing, commercial secrecy, currency risk, and lack of public legitimacy. In general the objectives of PUPs are to improve the capacity of the assisted partner. In practice, PUPs' work can be divided into five broad categories: training and developing human resources, technical support on a wide range of issues, improving efficiency and building institutional capacity, financing water services, improving participation. Public Community Partnerships Public-communitarian partnerships (PCPs) are internationally referred to as public-public partnerships but PCPs has a stronger connotation of community. While government and public water authorities should adopt and implement a water delivery policy that prioritises serving the needs of rural communities, many state-owned utilities fail to serve hard-to-reach areas. Community-based water systems are bridging the gap in water service delivery in many parts of Asia, Africa, and Latin America. TNI has observed new forms of partnerships between public authorities and rural communities, in which the communities are engaged in the decision-making about water solutions, supported with public funding and expertise and are empowered to take responsibility for running water systems. Such partnerships can bring rapid and lasting improvements.
Reclaiming Public Services is vital reading for anyone interested in the future of local, democratic services like energy, water and health care. This is an in-depth world tour of new initiatives in public ownership and the variety of approaches to deprivatisation.