Evaluating Water Institutions and Water Sector Performance

This study develops an analytical framework to identify various layers of institutional inter-linkages and institution-performance linkages evident in the process of institutional-performance interaction within the water sector. The study then evaluates the layers of linkages using perception-based cross-country data. Both the analytical and empirical analyses are used to identify key inputs for developing a generic strategy for water institutional reform. Results provide several major insights: a) they indicate the relative strength, direction and significance of the performance impact of institutional components and aspects; b) they suggest clearly that the institution-performance interaction can derive from its general socio-economic, political, and resource-related environment; and c) they strongly favor a sequential strategy for institutional reform in general and for water institutions in particular.

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