The Social Development Enterprise: The Case of Public Services in Latin America

Abstract

The general basis of this proposal is that the organization that we will call a “social development enterprise” is what best provides the public services of water and sanitation. The first contention (or differing characteristic and typifying condition) is that the objectives of the organization are integrated with those of society. Thus they are services and are public (for the entire population).The moral and social basis on which society allows and promotes the existence of organizations, delegating to them the monopoly of service, is that they should exist for the well-being of that society. Given the importance of the water infrastructure for the very subsistence of society, the correct functioning of this model (the integration of the objectives of the organization with those of society) is crucial, just as it must function as a monopoly (that is that the traditional rules of the market do not apply, for this model is another aspect of the social development enterprise).To act differently to this, within an alternative framework, will guarantee such tensions that in the long run the developing situation will lead to the exclusion of such organization, which will be seen as an obstacle to development. That is a big frustration.From the neo-ideological or publicists’ perspective the nature of these organizations is important, that is, are they state-run or private? In our proposal this difference is not significant; on the contrary, it is a central plank of the proposal to define what the role of the private sector should be in these organizations. Should it be the habitual and comfortable role of contractor, concession holder or owner, or rather should the private sector be a responsible participant in the social development enterprise?The role of the private sector in these organizations being defined, the model integrating public sector services (which may be extended to other public services) into society may be developed. The commitment to efficient management with appropriate checks and above all, transparency will be sufficient to successfully satisfy the social demand for development - a pending matter that is no longer postponable.