The private sector provided water to more than 30% of the population in only 6 of the 70 developing countries listed in table V.2; in most of the economies, the corresponding share was below 5%.
At the same time, about 60% of the countries have seen some TNC
involvement during the past two decades. Current
trends in TNC involvement differ considerably. For
example, in the Central African Republic, Chad
and Guinea, TNCs are no longer present.
Their exit has been due to war and political instability, the
end of the contractual period, and a general wish to
withdraw interests from the region (Owen, 2008).
In other economies, such as Argentina, Bolivia,
Brazil, Malaysia, the Philippines, Thailand and Viet
Nam, the trend is towards emphasizing local private
sector rather than foreign participation (table V.2).
By contrast, China, India and a number of West Asian
economies are increasingly interested in encouraging
TNC participation in water projects (Owen, 2008).
d. Road transport the most open, rail transport the least
There is limited information on the openness
to TNC involvement in transport infrastructure. A
recent study of developing and transition economies
found that the average level of restrictions on
foreign investment within transportation - including
infrastructure and related services - was lowest
in road transport and the highest in rail transport
(UNCTAD, 2006d).
e. Rising concerns related to the strategic nature of infrastructure
In recent years, policymakers in both developed
and developing countries have cautioned against
foreign investment in "strategic" infrastructure.
While there is no common agreement as to what is
to be regarded as "strategic", this tendency has been
associated with national security or public interest
concerns (chapter I), and seems to be particularly
pronounced in the case of cross border M&As where
the acquiring company is State owned (WIR06).