Liberalisation of sewerage and waste management services and the GATS: implications and challenges for developing countries

Rapidly increasing population and unplanned urbanisation made most cities in developing countries virtually incapable of providing the basic infrastructure services, such as sewerage connections, and solid and hazardous waste management. Pressure came from the international financial institutions to privatise these services which, for long, have been within the public domain. The concerted effort gained momentum when the WTO institutionalised the concept of environmental goods and services (EGS) in a bid to create a triple win situation for trade, environment and development for achieving sustainable development. This paper argues that developing countries need to be especially cautious regarding the socio-economic impact of liberalisation of sewerage and waste management services and also consider the impact of disciplines of the General Agreement on Trade in Services (GATS) on these service sectors before proceeding towards liberalisation.