Regulation and Development (Federico Caffè Lectures)
Cambridge University Press, 2005-03-10
EAN 9780521549486, ISBN10: 0521549485
Hardcover, 292 pages, 21.7 x 13.8 x 2.2 cm
In Regulation and Development Jean-Jacques Laffont provides the first theoretical analysis of regulation of public services for developing countries. He shows how the debate between price-cap regulation and cost of service regulation is affected by the characteristics of less developed countries (LDCs) and offers a positive theory of privatization that stresses the role of corruption. He develops a new theory of regulation with limited enforcement capabilities and discusses the delicate issue of access pricing in view of LDC's specificities. In the final chapter he proposes a theory of separation of powers which reveals one of the many vicious circles of underdevelopment made explicit by the economics of information. Based on organization theory and history, and using simple empirical tests wherever possible, Professor Laffont offers a comprehensive evaluation of the different ways to organize the regulatory institutions and opens up a rich new research agenda for development studies.
'In this impressive manuscript, Jean Jacques Laffont shows why the regulation of infrastructure services is crucial to achieve equitable and sustainable expansion of infrastructure services in the poorest countries of the world. This new book by one of the fathers of the modern theory of regulation offers a huge first step towards a theory of regulation of network industries for developing countries and provides preliminary empirical tests of this theory. It opens a huge new research agenda for academics and helps practitioners improve their ability to provide effective policy advice. It is a required reading for anyone claiming to care for the effectiveness of the delivery of public services in developing countries.' Antonio Estache, Senior Economic Advisor, The World Bank