Social policies and private sector participation in water supply – the case of Hungary (Draft)

The intention of this research project was to investigate how private sector involvement in the water supply sector impacts upon the poverty-related issues of equity, access and affordability in Hungary. The paper focuses on two levels of analysis: on the local level, that is, the level of cities, local governments and water utility operators; and on the national level, where laws governing the water sector are formed, and where data is available for water spending for different income segments. We demonstrate that the access problem is in fact an affordability issue in Hungary. Private sector participation has however not necessarily increased tariffs: this is mainly a result of heavy government subsidies.

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