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  • Public Utilities Management: Centralization VS Autonomy (2014/02)

Public Utilities Management: Centralization VS Autonomy (2014/02)

Public Utilities Management: Centralization VS Autonomy (2014/02)

Publication year: 2014

Type: One-pager

Keywords: housing, public utilities, multiplier effect, reforms, Development

The housing and public utilities model established in the first half of the 20th century and based on the centralized economy and cheap energy resources has been significantly outdated. There is an urgent need in creating a new housing and public utilities architecture, allowing to diversify financial sources and expand capacities of local authorities, thus, motivating introduction of new innovative technologies leading to drastically reduction of the level of resource losses and cost of services.

After the collapse of the Soviet Union the difficulties of the transition period led to underfunding in the housing and public utilities sector maintenance and development. This caused a slow-down in the renewal of fixed assets and a decrease in the volume and quality of the services. At the same time ensuring social stability was the key concern of the 90th, and the housing and public utilities sector was seen an instrument of the social protection of the population. That is why the government initiated no tariff increases even though the consumer payments could not cover the operational costs of the housing and public utilities sector.

A dynamic development of the housing and public utilities system will generate a strong demand for the adjacent sectors’ products and stimulate a number of multiplier effects throughout the economy. In particular, a growth in the housing and public utilities production by UZS 1000 will lead to production growth in the adjacent sectors by UZS 1530. At this, the cumulative added value in the other industries will increase by UZS 870.

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