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During much of the 1990s, water utilities worldwide experienced a wave of privatization. The rationale for this is largely based on two hypotheses: the fiscal hypothesis and the efficiency hypothesis. This article examines the evidence and concludes that water utilities privatization has been a failure.
Is foreign aid compatible with good governance? Using the case of irrigation aid in the Philippines, I hypothesise that aid is embedded in a perverse set of incentives which could undermine the application of good governance principles espoused by donors. My findings suggest that the problems of “moral hazard” and aid fungibility are embedded in irrigation aid. Furthermore, these incentives also drive...
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