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Strategic management tools and governance structures in urban water services – a research proposal for Mexico

Urban waters: Resource or Risk?WWW YES 200813-16 May 2008. Créteil – France

Ricardo SANDOVAL MINERO 1Michel NAKHLA 2

(1) Thésard, (2) Directeur de Recherches.Centre de Gestion ScientifiqueEcole Nationale Supérieure des Mines de Paris

WWW YES 2008 Ricardo SANDOVAL 2

Plan

Stakes and challenges urban centersand populationConcepts, theory, tracks: urban water, institutions, transactions, cognition, management tools and governance

Proposed methodologyExpected results and discussion


Background and context

Federal Government

31 States Federal District(Mexico City)

2438 Municipalities

National WaterCommission

State Water Commissions

Water boards / operators

Basin Organizations


Stakes and challenges urban centers and population

> 1'000,000 inhab. 11 14.3

100,000 - 1'000,000 112 34.6

15,000 - 100,000 427 13.9

2500 - 15,000 2640 13.7

Number of cities Percentage of total population

[INEGI, 2005]


Stakes and challenges good news, bad news…

95% coverage of water supply and sewerage in Mexican cities in spite of growth and urbanizationWater-related illnesses under controlStrong technical tradition

Half of surface waters polluted (COD)Less than 40% of wastewater treated; less than 25% BOD removedHalf the population with discontinuous serviceOverall efficiency under 40%


Stakes and challenges institutional environment’s evolution

Ministry for Urban Development and Ecology (1982)

National Water Commission (1989) + Basin Councils + Private Participation essays

Environment and Natural Resources Ministry (1988)

National Waters Law (1992)Program « APAZU »

“New public management” :Decentralization + privatization + participation

water quality

ecology sustainability

General Direction for the Operation of Water Supply and Sanitation Systems (1971) – Federal Water Supply Committees

Ministry for Human Settlements and Public Works (1976)

Hydraulic Resources Ministry- General Direction for Water Supply and Sewerage (1948)

Urbanization and simultaneous rural outburst + political plurality (local issues)

urbanization

Centrally controlledfrom Mexico City

(1948 – 1983)

Decentralization toMunicipalities

(1983 – 1989)

Modernization(1989 – 2006)

irrigation

[Author’s construction inspired in Pineda-Pablos, 2002]


Environment

Institutional environment (“rules of the game”)

Concepts, theory, tracks economic framework

Principal

Objectives

Perception

Mandate(perceptionmade explicit)

Task(as perceivedby the agent)

Agent

Information asymmetry, non observability,non verifiability, uncertainty

contracting

monitoringincentivespenalties

auditsdispute resolution

InstitutionalArrangements(way of applying

the rules)


AG

ENT

Stategovernment

PRIN

CIP

AL

Concepts, theory, tracks urban water, institutions, transactions

Municipalgovernment

Water board

Wateroperator

To provide waterand sanitation

Manage anorganization

By using a setof resources

Under a set ofrestrictions

Performanceand economic

regulation

Federalgovernment

Environmental& resourceregulation

Supervisionand law

enforcement

Citizens & users Pay for theservices

Budgetaryand technical

support

Public healthregulation


Concepts, theory, tracks institutional environment

[Author’s construction based on Baietti et al., 2006]


Concepts, theory, tracks institutional characterization

[Author’s construction based on Luis-Manso et al., 2005 and Ménard, 2003]


Concepts, theory, tracks agency processes and cognition

Nature of task:

Kind of mandate

Clear Confuse a

Simple Complex Simple Complex

Initial interaction Precise specification of mandate Vague declaration of mandate.Responsibility limitations.Definition of means.

Intermediate interaction

State of advancement

Intuitive estimates of advancement

Precise accounts and reports.Evaluation of committed means.

Simplified accounts and reports.Evaluation of committed means.

Final interaction Results evaluation Precise accounts and reports.Eventually, construction of results.

Simplified accounts and reports.Construction of results.

Numerical indicators

Advancement.Results.

Results. Activity

a. Difficult to be made explicit.Source: adapted from Girin (1995).


Concepts, theory, tracks management tools and governance

Strategic dashboards (tableaux de bord) or scorecards“Enlightened scorecard” - guide agent’s behavior in multi-objective contexts [Jensen, 2001]Incorporate social and environmental objectives of sustainable development [Figge et al., 2002]Incorporate tacit knowledge [Abernethy et al., 2005]Align strategy and operations within water utilities in Latin America [González et al., 2006]; participation enhancement and organizational learning support [Reis Ferreira, 2004]

The implementation of an organizational learning device can contribute to governance improvement within organizations [Bouvier, 2004]


Concepts, theory, tracks previous developments

[Ferreira, 2004] [González et al., 2006]


Proposed methodology objectives and methods

Institutional environment evolutionsince municipal reform (1983)Analysis of three instances showing different governance modes or institutional arrangementsDetailed analysis of the role of cognitive and cultural costs, information and coordination in a selected case

Analytical grid –institutional environment and arrangements evolution

Intervention research, implementation of a management tool as a learning device [Moisdon, 2006]


Proposed methodology field analysis

Baja California, Chihuahua

Public stateCoahuila

Public + mixedQuerétaro

Public state + municipal Distrito Federal

Public + servicecontracts

Quintana RooPublic + concession

MorelosPublic municipal


Expected results and discussion

An exploration of cognitive and cultural aspects of institutional arrangementsevolution and endurance in Mexican urban water sectorA detailed exploration of the potential role of participatory strategic steering management tools

To incorporate sustainable development issues to long term planningTo improve governance in turbulent environments

A set of policy recommendationsA proposed governance model for medium-sized urban population centers


[email protected][email protected]

thanksmerci

graciasdanke

obrigadoshokrán

todà

Scholarship holder No. 206198

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