Enhancing production efficiency of public enterprises through stakeholder participation: the case of irrigation systems

This study investigates the impact of stakeholder participation on the production efficiency of irrigation systems in Laos through the implementation of Farmers Water User Committees (FWUCs).Utilising a difference-in-difference methodology, the research analyses data from 79 irrigation projects over a 13-year period.The findings reveal a statistically significant positive correlation between FWUC establishment and improved project effectiveness, even when controlling for variables such as project size, age, and socio-economic factors.Smaller, newer projects exhibited higher effectiveness, whilst remote locations faced greater challenges.The temporal analysis indicates that the benefits of participation accrue gradually, underscoring the importance of sustained implementation.These results carry significant implications for public enterprise reform, particularly in irrigation management.The study contributes to the growing body of evidence supporting the efficacy of stakeholder participation in public enterprise management, offering valuable insights for policymakers seeking to enhance the efficiency and sustainability of irrigation systems.