Liberalizations In Network Industries

This book explores the wave of liberalization reforms experienced by OECD network industries. Focusing on the telecommunications sector, the authors analyze the latest data available on liberalization and privatization, and following a political economics approach, they integrate standard economic analysis with the most recent studies of the political determinants of market-oriented policies. The book presents new econometric evidence on several policy issues, including institutional complementarities dynamics, the problem of policy sequencing and the role of government political ideology. The detailed and comprehensive discussion offers insights into how so many countries adopting similar reforms actually differ in their policy “bundling”, intensity and implementation of liberalization and privatization.

'To learn about how economic and institutional forces have shaped the network industries and policies towards them, read the first part of the book. To discover their impacts on particular industries, read the second part. And to find out what has happened in particular countries, read the third part. I think anyone interested in network industries should read all of it! The book's structure allows for many interesting comparisons across countries and sectors.' Richard Green, University of Birmingham, UK 'This is a very useful and comprehensive guide to reforms in network industries in communications, energy, transport and water. It is organized by generic topic, sector and region. Its authors are acknowledged experts. I am confident that this Handbook will be a widely read and valuable resource for many years.' Martin Cave, London School of Economics, UK 'Quite an accomplishment, this Handbook provides by far the most comprehensive overview of the role of the private sector and competition in infrastructure industries, with thoughtful surveys of each of the major infrastructure sectors and of the key regions and countries.' José Gómez-Ibáñez, Harvard University, US In recent decades, all infrastructures have undergone significant restructuring. This worldwide phenomenon is often labelled 'liberalization' and although expectations were high with respect to lower prices, greater efficiency and innovation, the expected gains have not always been fully realized. This extensive, state-of-the-art Handbook provides a comprehensive overview of the various experiences of liberalization across different sectors, regions and disciplines. The multidisciplinary approach focuses on the economic, political and institutional aspects of liberalization as well as, to a lesser extent, on technological issues. As such, it constitutes a unique contribution, as this broad overview is often lost in the sector specific, country-focused and purely disciplinary approaches prevalent in the current literature. Sectors explored include telecoms, the Internet, energy and transport, whilst the truly global perspective incorporates unique case studies from an array of developed and developing countries including the US, China, India and the EU. The International Handbook of Network Industries will become the definitive volume for academics researchers and students of economics, political science and law interested in infrastructure regulation. It will also prove a valuable guide to practitioners and policy-makers involved in liberalization and competition.

Network industries such as electricity, gas, rail, local public transport, telecommunications and postal services are recognised by the EU as crucial for fostering European social and territorial cohesion. Providing an overview of key policy reforms in these industries and an empirical evaluation, this thought-provoking book offers a critical perspective on the functioning of the networks that provide vital services to EU citizens.

This book convincingly argues that from a theoretical point of view present day network industries offer opportunities for strategic behaviour and that these opportunities are also actually utilized in practice. The authors show that this behaviour can be harmful to the realization of the expected positive effects of institutional changes such as liberalization and privatization (e.g., innovation and lower prices). The authors make their case in a solid theoretical way illustrated with insightful case studies. This book is a must for academics, managers and policy makers in today s network industries. John Groenewegen, Delft University of Technology, The Netherlands This in-depth book explains how institutional changes such as the privatization and liberalization of network industries, for example transport, energy or telecommunications, can frequently be disappointing. The expected benefits such as lower prices, innovation and better services fail to materialize, often because the number of competitors is low. The authors demonstrate how strategic actor behaviour of one or more of the firms involved can help explain these disappointing results. This book elucidates the concept of strategic behaviour and portrays it in real-life examples to aid our understanding of this important phenomenon in terms of policy and organizational decision-making. It clearly demonstrates the adverse effects strategic behaviour can exert on the quality of infrastructure provision after liberalization. The theoretical sections are backed by empirical examples from throughout the world. The unique multidisciplinary approach will ensure a broad readership among students, researchers and policy-makers with an interest in the economics, politics and management of infrastructure and network industries.

The promotion of competition in Europe's network industries has been in the foreground of economic policy in recent years. Network industries have undergone dramatic changes, involving privatisation, liberalisation and de- as well as re-regulation. But there are still many unresolved problems in both economic policy as well as economic research. Hence, a vivid exchange between academics and policy makers has emerged to find the optimal framework for these industries. This volume contributes to this discussion, containing several papers on various network industries.

Competition in network industries faces particular problems which are analyzed from both a theoretical and policy perspective. Issues of vertical integration, deregulation and privatization are covered. While competition and privatization are rapidly unfolding in telecommunications in Western and Eastern Europe, energy and railway transportation represent sectors of more gradual liberalization. The different market characteristics of telecommunications, energy and transportation raise consistency problems in the fields of deregulation, investment strategies and internationalization. While transformation policies create opportunities for liberalization in Eastern Europe and Russia the latter shows critical problems in ending monopoly and state ownership. Network industries could be subject to competition and promise major investment opportunities plus consumer benefits.

This book presents a comprehensive overview and critical analysis of the processes of liberalization and privatization, and their consequences for economic performance, social cohesion and political democracy in the European Union. It examines the main drivers and the various theoretical rationales for privatisation in the context of different schools of thinking. It argues on the basis of broad empirical evidence that privatisation in Europe, particularly the ongoing privatization of social services, undermines the basic elements of the different social models that have developed in Europe. These arguments are supported by a number of in-depth case studies, with specific focus on health care, education and finance. The authors of this volume advance from this critique and explore the basic requirements for a progressive public sector and its role for economic, social and democratic development. This book will be indispensable reading for all interested in Economic Policy, Public Sector Economics, European Integration and Political Science.