BEL Chairman Explains Why Utilities Swing Public-Private

Marshalleck also shared his personal perspective on the government’s acquisition of Fortis and its shares in BEL. He explained that there is a phenomenon across the region in which important natural resources and utilities cycle between private and government ownership. He also gave an explanation as to why this cycle exists.

 

Andrew Marshalleck, Attorney-At-Law

“It has always been recognized that ownership of utilities tend to cycle between public and private ownership. It is known to economists as the nationalization, privatization cycle. And, you will readily recall, or I can recall in my lifetime, I can see ownership in water cycle between public and private. That has happened with BWS. I have seen ownership of telecoms cycle between public and private ownership, with BTL. I have seen the ownership of BEL cycle between public and private. And now we are seeing ownership of the dams cycle between private and private ownership. I have also seen ownership of the port cycle between public and private. So that the phenomenon is real. The ownership of these critical utilities and natural resources tend to cycle overtime and that is true not only for Belize but for everybody, the whole Caribbean and Central America. AS to why it tends to cycle there has been a lot of theories that have been put forward. But the one I like is that the cycle is fueled by considerations of equality and considerations of efficiency which comes form privatization. Put it another way, private is concerned with earning money and nationalization takes into account the other considerations.”