Evaluation of decentralization and commercialization in the urban water sector of Yemen
| Author | Mohammad Al-Saidi |
| Published date | 01 September 2020 |
| DOI | 10.1177/0020852318780984 |
| Date | 01 September 2020 |
| Subject Matter | Articles |
Article
International
Review of
Administrative
Sciences
Evaluation of
decentralization and
commercialization
in the urban water
sector of Yemen
Mohammad Al-Saidi
Qatar University, Qatar
Abstract
The article analyzes decentralization and commercialization reforms in the Yemeni
urban water and sanitation sector. The case study shows that sector reforms to
increase the performance and independence of water utilities in developing countries
can become entangled in conflicting political agendas, leading to the derailing of
reforms. The reform process in the Yemeni case is presented as part of sector-wide
policy change due to increasing scarcity, supply crises, and pressure from donors.
A measurement framework for the level of decentralization and commercialization
of water utilities is developed and applied. The future reform pathways are outlined,
giving consideration to the current political reality in Yemen.
Points for practitioners
Water decentralization reforms need to follow technical considerations regarding the
capacity and independence of utilities in order to enhance any positive impacts of
decentralization. Institutional conflicts are difficult to tackle during an ongoing reform
process, particularly in a context of corruption, politicization, and state fragility.
There is a need for more context-specific reform agendas and better strategies to
deal with conflicts and shield utilities from political interference. Further, effective
commercialization requires a level of accountability at the local level and improved
capacities of staff. Such capacities can be enhanced through trainings ahead of reforms.
Corresponding author:
Mohammad Al-Saidi, Center for Sustainable Development, College of Arts and Sciences, Qatar University,
PO Box 2713, Doha, Qatar.
Email: malsaidi@qu.edu.qa
International Review of Administrative
Sciences
2020, Vol. 86(3) 513–528
!The Author(s) 2018
Article reuse guidelines:
sagepub.com/journals-permissions
DOI: 10.1177/0020852318780984
journals.sagepub.com/home/ras
Keywords
commercialization of water utilities, decentralization reforms, integrated water resour-
ces management, urban water sector, Yemen
Introduction
The controversial neoliberal reforms of the decentralization and commercialization
of public utilities have been promoted in developing countries, and widely
implemented in sectors such as water. Economic theory argues that decentraliza-
tion increases economic efficiency through the better alignment of services
to preferences and local circumstances, the increase in competition, and the
stimulation of experimentation and innovations (Musgrave, 1959; Oates, 1972;
Tiebout, 1956).
In addition, decentralization is promoted as a key aspect of good governance in
developing countries as it can help fight the corruption of central governments,
encourage the use of local knowledge, deepen democracy, increase public partic-
ipation in public decision-making, improve equity, achieve ownership, and
enhance accountability through better monitoring (e.g. Agrawal and Ribot,
1999; Manor, 1999; Ribot, 2003). Donor organizations thus cite improvements
in public service performance as a result of decentralization (see Crook and
Manor, 1998; Smoke, 2001; World Bank, 2000). However, in the last few decades,
these theoretical assumptions have been tested in numerous cases that show con-
flicting results arising from problems of implementation and political context
(Ghuman and Singh, 2013; Kuhlmann and Wayenberg, 2016). For example, the
decentralization of water utilities can lead to adverse results, such as increased
corruption in several Indian states (Asthana, 2008), political interference in
water allocation in West Bengal (Chakrabati, 2013), inequalities of water supply
in Tanzania (Masanyiwa et al., 2013), differences in the performance of utilities in
Colombia (Granados and Sa
´nchez, 2014), and negligence of local human resources
in Central India (Asthana, 2012). Furthermore, decentralization reforms rarely
come singly, but rather in combination with other neoliberal reforms, particularly
commercialization. Herrera and Post (2014) reviewed 41 countries that were decen-
tralizing water and sanitation services, out of which 35 initiated commercialization
reforms whereby water utilities were corporatized into legal and financial indepen-
dence as a way of “insulation” from interferences. Corporatization reforms are
common reforms that link decentralization reforms with commercialization, the
latter to be understood in this article as the introduction of a business-oriented
mentality and commercial practices. Such rarely studied twin neoliberal reforms
are often pushed by international organizations, particularly in the context of
implementing the broader policy agenda of integrated water resources manage-
ment (IWRM). In fact, commercialization is seen as a solution to increasing
performance and elevating some of the failures of public water and sanitation
514 International Review of Administrative Sciences 86(3)
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