This paper describes the developments and problems contributing to outsourcing and privatisation in the German utilities sector (water, energy and public transport) on the municipal level and modernisation and reaction strategies of local authorities. The observed transformation from a “service” to a “ensuring local authority” is discussed in the light of local self government. The changed functions and socio-ecological control resources to ensure the public interest are demonstrated focusing on the example of transformations in network infrastructural sectors.

This publication is part of the interdisciplinary project “netWORKS” carried out by a research group consisting of five German research institutions. The goal of the project is to study the socio-ecological transformation taking place in utility industries, to develop proposals on how this change can be shaped and guided along a corridor of sustainable development. Main focus is the scope for formative action by local government. The project is sponsored by the Federal Ministry of Education and Research (BMBF) (11/2002-10/2005).

Within networks Difu focuses on the analysis of changes in the organisation and delivery of local services and discussion of the safeguarding and development of local government scope for formative action. The empirical base are multiple case studies and surveys.
14. EU involvement

The goal of networks is to study the socio-ecological transformation currently taking place in utility industries (e.g. outsorcing, privatisation). Proposals are being developed on how change can be shaped and guided along a corridor of sustainable development. The main focus is the scope for formative action by local government.

The outsourcing and privatisation of municipal functions in the German utilities sector is well advanced (water, energy and public transport). (Strategic) planning, control, monitoring, and coordination functions in local authorities are becoming more important in comparison to operative service delivery. Legal and practical conditions have to be observed to enable responsible municipal decision-markers to safeguard the public interest in regard to (partly) privatised public services and to meet the requirements of local self administration laid out in the German constitution.

Deutsches Institut für Urbanistik (Difu)
Jens Libbe, tel. +49 30 390 01 115

15/10/2004

Jens Libbe, Jan Hendrik Trapp, Stephan Tomerius

research

Urban Policy > Transport and infrastructure

Public transport, Technical infrastructure