established and by how such objectives are pursued. In developed and developing countries alike, a major challenge for the future will be to make the institutional changes required to modernise and strengthen the legal, policy and administrative arrangements that govern the sector, SO as to balance effectively the interests of users, give due consideration to health and environmental concerns and ensure at the same time that the sector is put on a secure financial footing. This is no easy task. As Ashley and Cashman note, there is a growing need for effective regulatory oversight, no matter how services are provided, and a need for central government to continue to play a strategic role, especially with respect to social, environmental and fiscal policy direction. The potential challenges for regulation are likely to increase as new technology is adopted and organisational forms respond to its deployment. It could well be that responsibilities in the area of service delivery become blurred, requiring a greater level of governance to protect the public. The interrelationship of different spheres of regulation, safety, economic, quality, environment, consumer protection and perhaps others will become more challenging and complex. Moreover, the private sector's participation in water services will inevitably grow - not necessarily as a result of privatisation, as there is only weak evidence that privatisation does actually result in greater investment in water services. Decentralisation and more effective private sector involvement are seen to be the way forward through various forms of outsourcing as service providers seek to improve efficiencies and adopt technological innovations. INFRASTRUCTURE TO 2030: TELECOM, LAND TRANSPORT, WATER AND ELECTRICITY - ISBN 92-64-02398-4 - © OECD 2006 1. A CROSS-SECTORAL PERSPECTIVE ON THE DEVELOPMENT OF GLOBAL INFRASTRUCTURES TO 2030 Adapting to the changing institutional context These reforms will have to take place in a changing institutional context where in many parts of the