Private Sector Participation in Solid Waste Management
Business Opportunities and economic Limitations
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The need for investment in the Solid Waste (SW) sector in Low- and Middle Income Countries (LMIC) far outstrips their financial resources. One of the solutions recommended is the involvement of the private sector. This book aims to demonstrate the limitations of privatisation models to the concept of Integrated Sustainable SW Management (ISSWM) This investigation discovered that the main contradictions include the nature of solid waste (limitation of Standard Market Model to cope with public goods), the limitation of so- called Pareto Efficiency , the presence of externalities, free-rider issu...
The need for investment in the Solid Waste (SW) sector in Low- and Middle Income Countries (LMIC) far outstrips their financial resources. One of the solutions recommended is the involvement of the private sector. This book aims to demonstrate the limitations of privatisation models to the concept of Integrated Sustainable SW Management (ISSWM) This investigation discovered that the main contradictions include the nature of solid waste (limitation of Standard Market Model to cope with public goods), the limitation of so- called Pareto Efficiency , the presence of externalities, free-rider issues, low-income areas, and a decided lack of accurate information and the prevalence of asymmetric information (or symmetric lack of information. The success of PSP does not necessarily depend on competition, but rather on good inter-organisational relationships. This book highlights the crucial importance of good inter- organisational relationships. Government agencies or private agencies should enhance the monitoring of outsourced SW services, and new systems to strengthen the managerial capacity of municipal managers should be introduced.
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