Other available formats:
Looking for an examination copy?
If you are interested in the title for your course we can consider offering an examination copy. To register your interest please contact firstname.lastname@example.org providing details of the course you are teaching.
Political economy scholarship suggests that private sector investment, and thus economic growth, is more likely to occur when formal institutions allow states to provide investors with credible commitments to protect property rights. This book argues that this maxim does not hold for infrastructure privatization programs. Rather, differences in firm organizational structure better explain in the viability of privatization contracts in weak institutional environments. Domestic investors – or, if contracts are granted subnationally, domestic investors with diverse holdings in their contract jurisdiction – work most effectively in the volatile economic and political environments of the developing world. They are able to negotiate mutually beneficial adaptations to their contracts with host governments because cross-sector diversification provides them with informal contractual supports. The book finds strong empirical support for this argument through an analysis of fourteen water and sanitation privatization contracts in Argentina and a statistical analysis of sector trends in developing countries.Read more
- Explains why developing country conglomerates and business groups perform better than multinationals in infrastructure sectors in the developing world
- Outlines the main political factors that affect the financial and political viability of long-term infrastructure privatization contracts
- Explains why new international property rights protections, such as international arbitration, do not work effectively in infrastructure sectors
Reviews & endorsements
"Post’s book is must-reading for anyone interested in the private provision of infrastructure services, and particularly the epidemic of cancelled concession contracts. The existing literature emphasizes the role of institutional features - such as international legal guarantees, independent regulators, and other formal property rights protections - in discouraging cancellation. But Post’s in-depth study of 14 water concessions in Argentina suggests that informal property rights protections are more important. In particular, concessions led by domestic firms with diversified local holdings are much more resilient than those led by multi-national companies specializing in infrastructure because the domestic companies are more socially and politically embedded and have a wider variety of negotiating options."
José A. Gómez-Ibáñez, Derek C. Bok Professor of Urban Planning and Public Policy, Harvard UniversitySee more reviews
"Development studies has recently turned its attention to the legal environment facing business. Does greater accountability of government improve the rule of law and thus spur economic activity? Alison Post reminds us that firms play an important role in this process: that powerful firms with diverse local connections will have influence over the terms of competition, including for foreigners. It’s refreshing to see such a sharp-eyed study that takes us back to the basics of political economy and has wide implications for the study of both privatization and foreign investment."
Stephan M. Haggard, University of California, San Diego
"What explains variation in the sustainability of private investments in politically volatile environments? This groundbreaking book addresses the question by illuminating the informal mechanisms that protect investors in the absence of formal legal safeguards in developing countries. Building on Vernon’s analysis of the ‘obsolescing bargaining’ and Williamson’s notion of ‘relational contracting', Alison Post not only documents but explains the conditions that make private investment more (or at times less) resilient to regulatory capture in the water and sanitation sectors. Her insightful contributions improve our understanding of the political conditions that shape the definition of property rights, while pointing to the vulnerability of institutions and treaties that require third-party enforcement. This book is a must-read for any scholar of economic development and comparative political economy more generally."
M. Victoria Murillo, Columbia University
"Alison Post’s insightful new book will shake up much received wisdom on the political economy of regulation and on property rights and firm strategies more generally. Strict property rights, backed up by powerful courts, are not the godsend they are presumed to be; they turn out, Post shows, to be brittle and ineffective. Moreover, diversified business groups, long thought to be waning vestiges of traditional capitalism, are in fact more flexible and committed partners in ongoing negotiations over inevitably evolving regulation. The exacting empirical research unveils the full complexities of Argentine politics but at the same time has broad implications for theorizing on firms, property rights, and regulation."
Ben Ross Schneider, Massachusetts Institute of Technology
Not yet reviewed
Be the first to review
Review was not posted due to profanity×
- Date Published: April 2014
- format: Hardback
- isbn: 9781107048041
- length: 266 pages
- dimensions: 236 x 160 x 25 mm
- weight: 0.56kg
- contains: 4 b/w illus. 1 map 30 tables
- availability: Available
Table of Contents
1. Informal contractual supports in weak institutional environments
2. An overview of the Argentine privatizations
3. The fragility of nonlocal contracts prior to the crisis
4. Smoother sailing for all investors in less competitive provinces
5. Home court advantages magnify after the crisis
6. Diverse local holdings also prevail in calm political contexts
7. Explaining contractual resilience in low- and middle-income countries
Welcome to the resources site
Here you will find free-of-charge online materials to accompany this book. The range of materials we provide across our academic and higher education titles are an integral part of the book package whether you are a student, instructor, researcher or professional.
Find resources associated with this titleYour search for '' returned .
Type Name Unlocked * Format Size
*This title has one or more locked files and access is given only to instructors adopting the textbook for their class. We need to enforce this strictly so that solutions are not made available to students. To gain access to locked resources you either need first to sign in or register for an account.
These resources are provided free of charge by Cambridge University Press with permission of the author of the corresponding work, but are subject to copyright. You are permitted to view, print and download these resources for your own personal use only, provided any copyright lines on the resources are not removed or altered in any way. Any other use, including but not limited to distribution of the resources in modified form, or via electronic or other media, is strictly prohibited unless you have permission from the author of the corresponding work and provided you give appropriate acknowledgement of the source.
If you are having problems accessing these resources please email email@example.com
Sorry, this resource is locked
Please register or sign in to request access. If you are having problems accessing these resources please email firstname.lastname@example.orgRegister Sign in
You are now leaving the Cambridge University Press website. Your eBook purchase and download will be completed by our partner www.ebooks.com. Please see the permission section of the www.ebooks.com catalogue page for details of the print & copy limits on our eBooks.Continue ×