Problems In Public and Private Companies
This transformation is often described as a tendency towards “privatization”, and as such is the subject of much debate amongst the general public but also the political arena. Post in the terms in which it is often presented, the question does not deserve even to be addressed: is so sunny out the fact that water is a common asset of fundamental importance as to render impractical any of its ownership by private individuals, nor would acceptable service delivery on a purely commercial basis. The water service not only to the individual application users, but requires collective dimension, thus assuming an active role by the public entity in defining the quality and levels of provision. At stake is not only the accessibility of universal services for all users – as with other network services – but also the fact that water is a precondition for any form of economic and social development. The water, in this sense, can never be understood as a commodity very idea that someone can profit by speculating on an essential commodity to be rejected firmly.
But closer inspection reveals that this is not the issue on the agenda. The essential nature of good water can not leave the background the fact that its operation requires capital and technology, organized according to a logic of business. Whatever management does not want to weigh on public finances, nor give future generations a depleted water resources, must take steps to recover the rates necessary means to meet the operational requirements and investment.
The possible contribution of the private sector must be understood in this light. Public management is a practical option with success, if public enterprises are efficient and empowered to operate in a business logic. However, not always in the public sector has the resources and capabilities to ensure efficient management, and especially not always the economic entity where public shall refer to companies target a function of managerial, bending them to objectives rather than with service delivery have little to do. For this reason, the transformation of the management of water services to business models may find a valuable contribution in the private sector, provided of course that this is in the public’s ability to govern and regulate the system
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