Water institutional reforms in Chile

What is it about?

This paper provides a review of the recent institutional changes observed in the water sector in Chile. This review is then used to reflect the Chilean experience in the light of the results concerning institutional change found in existing literature on both institutional economics in general and water-institutional economics in particular.

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Why is it important?

While the already observed institutional changes, such as the transferable water rights, water markets, and urban water reforms, are all significant, further reforms are delayed by the deliberate legislative process required for changes as per the 1980 Constitution. Future water reforms in Chile, therefore, depend on a very difficult process of political reforms needed to change the 1980 Constitution and the 1981 Water Code.