The murky waters of the second wave of neoliberalism: corporatization as a service delivery model in Cape Town |
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| Institution: | Regional and Town Planning, University of Pretoria, Gauteng, Pretoria 0002, South Africa |
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| Abstract: | This article reviews how the process of corporatization transforms public sector management by adopting private sector principles. It argues that corporatization, as an institutional form emerging from a second wave of neoliberalism, threatens to undermine the democratic accountability of local authorities by virtue of restructuring the state in ways that are invisible to the public yet with highly negative outcomes for low-income communities. The article provides a case study on the water sector in Cape Town, South Africa by tracing the local authority's adoption of three cost-recovery policies and their impacts on low-income households over a five year period (1997-2001). Engineers are the key agents in the promotion of cost-recovery policies in the efforts to deliver services more `efficiently'. While these officials are highly skilled professionals in dealing with the technical side of the production process, they lack the social training necessary to deal with the politics of distribution. The prominence of the neoliberal agenda in urban management can be in part be attributed to the power of the technical over the political as engineers displace politicians in the deliberations over how to deliver services to poor areas of the city. |
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| Keywords: | Corporatization Privatization Service delivery Water Cape Town Equity |
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