Dogmatic development : privatisation and conditionalities in six countries a PSIRU report for War on Want

Hall, David and De la Motte, Robin (2004) Dogmatic development : privatisation and conditionalities in six countries a PSIRU report for War on Want. Project Report. Public Services International Research Unit (PSIRU), London, UK.

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Abstract

This report looks at how conditionalities and pressures from aid agencies and development banks force
developing countries to adopt privatisation policies in public services.
It focuses specifically on the sectors of water, electricity, and healthcare, in six countries: Colombia; El
Salvador; Indonesia; Mozambique; South Africa; and Sri Lanka. It examines the impact of the requirements
and policies of the International Monetary Fund (IMF), World Bank (WB), and other agencies including
regional development banks, the European Commission (EC) and donor countries. It includes a specific
examination of the various ways in which the UK’s Department for International Development (DFID)
supports privatisation in these services.
It concludes that the pressures for privatisation have been strengthened through new structures of ‘globalised
aid’; that they create serious limitations on independent decision-making by developing countries, and
generate some strong political responses; and that policies of development banks and donor agencies,
including DFID, should be reviewed to remove such pressures and ensure that policy-making in developing
countries is determined by local democratic processes.

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