1 Regulatory capture revisited - is there an anti-corruption agenda in regulation? Lessons from Colombia and Zambia

Author: Frédéric Boehm

Corruption is a threat to efficient and effective water and sewerage service delivery. This paper examines regulatory processes in the water sector and the problem of regulatory capture. It provides an overview of the concept of capture and the risks of corruption in regulation; then, potential measures to control corruption are presented. It is further argued that good regulation is actually a key element for reducing corruption in the sector as a whole. In an empirical section, the institutional regulatory frameworks in Zambia and Colombia are analyzed based on these considerations. The question asked is in how far the regulatory framework in these two countries is able to prevent identified risks of corruption; or whether an explicit anti-corruption perspective could safeguard the independence of the regulator both from narrow political interests and from the regulated industry. The paper concludes with some lessons learnt and avenues for further research.