Is Successful Water Privatization a Pipe Dream?: An Analysis of Three Global Case Studies

For decades, governments across the world have struggled to privatize their water systems. In the developing world, water privatizations have often led to bitter populist clashes, public health crises, and cancelled concession agreements. This Note studies three water privatizations and analyzes why certain privatizations fail and others succeed. By analyzing privatizations through three factors—class dynamics, deal structure, and political climate—this Note suggests ways in which developing governments can structure water privatizations to deliver long-term improvements to local communities. This Note argues that successful water privatizations often dilute class dynamics by instituting progressive pricing schemes, promote business transparency by requiring stringent due diligence, and advance citizens’ interests by employing strict regulatory oversight. By replicating these features, developing governments are more likely to negotiate successful water privatization deals on behalf of their citizens.