The Political Economy of Water Service Privatization in Mexico City, 1994–2011

Abstract

This paper chronicles the implementation of water service privatization to combat severe water shortage in Mexico City, also known as the Distrito Federal (DF), from 1994 to 2011. Initially, the DF's administration successfully employed private actors to provide more extensive and efficient service while retaining public control of infrastructure. Privatization in the DF was unique in its competitive service structure and the support provided it by the city's populist government. However, political manoeuvring stalled progress in contract governance, network extension, and regional coordination, suggesting the need for more robust accountability structures linking municipal and national political outcomes to household service delivery. An improved theoretical understanding of how stakeholders can collectively manage common pool resources in the urban environments of middle-income countries is also essential.