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This is a classic case of water privatization -- what were its strengths and weaknesses?

 

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I don't agree with the statement "cost of service always rise in a privatization". What rises is price! Cost might (and probably always does) go down with privatization, owing to increased efficiency. Only in cases of privatization without competition (i.e. a public monopoly becomes a private monopoly and there are no price controls) can actual "cost" (not sure if that would be the appropriate term but to use your words) increase if profits rise more than what the savings in efficiency grant (and as long as demand elasticity plays to the supplier's advantage).

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Well, it depends on point of view: the "cost" for consumers is the amount (price) of their bills ;) the cost of production varies and maybe is not directly comparable because private firms may give additional services (increased coverage by example) with extra cost, the state administration may have deficit with few consequences, etc.

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