Economic Good Vs. Public Values: The Consideration of Social Objectives in the Water Privatization Process

Abstract

The privatization of water services has grown significantly in recent years. This thesis examines if water privatization is a socially responsive solution to alleviating global water concerns. First, selected past privatization attempts were reviewed in the literature. The concerns and purported benefits regarding water privatization identified are then presented in objectives hierarchies. Next, a case study of Oahu, Hawaii, was conducted to demonstrate how values could be considered in the privatization of the water sector. The Analytic Hierarchy Process (AHP) was used in this study to measure the importance, or relative priorities, of such values. The findings from the literature review and case study were then analyzed in conjunction with theoretical reflections and purported desiderata as articulated by both researchers and practitioners. The research results showed that the Oahu stakeholders interviewed regard environmental considerations to be of greatest importance. Additionally, the AHP highlighted the fact that participants would like to have the purported efficiency benefits from privatization, but would also like societal objectives to be adequately met. The case study results serve as an effective guide to use if Oahu is faced with significant water management changes.