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Social Policies and Private Sector Participation in Water Supply: Hungary


After more than a decade of experimentation with private sector participation (PSP)1 in the water sector, we still have no clear picture about the privatization process in Hungary and its impact. This chapter will try to provide an analysis of the impact of PSP in the water sector in Hungary. The Hungarian water sector has undergone a major transition since the early 1990s, which has affected both its economic and its social performance. Before the 1990s, under the centrally planned economy, drinking water was provided by the state. As a result, state-managed companies had almost no incentive to increase efficiency. Their main goals were to obtain enough subsidies from the government and to try to meet the goals set out in the economic plans.

Cite as: Boda, Zsolt, Gábor Scheiring, David Hall, and Emanuele Lobina. 2008. "Hungary." Pp. 178-202 in Social Policies and Private Sector Participation in Water Supply: Beyond Regulation, edited by Naren Prasad. Houndmills, Basingstoke: Palgrave Macmillan.


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