PRIVATIZATION

In: FP, Band 118, S. 14-27

Abstract

SINCE THE 1980S, THE PRIVATIZATION OF STATE ENTERPRISES HAS GONE FROM NOVELTY ACT TO GLOBAL ORTHODOXY. MORE THAN 100 GOVERNMENTS HAVE SOLD STAKES IN STATE COMPANIES TO PRIVATE INVESTORS, RAISING $1 TRILLION AND TRANSFORMING THE STATE'S ECONOMIC ROLE. THOUGH PRIVATIZATION'S PROMISE MAY HAVE BEEN OVERSOLD, ITS ILLS HAVE ALSO BEEN EXAGGERATED. THE REAL QUESTION IS HOW - NOT WHETHER - TO TRANSFER STATE FIRMS TO PRIVATE HANDS. THE AUTHOR EXPLAINS HOW PRIVATIZATION IS MORE THAN AN ECONOMIC ISSUE, HOW IT HAS SHRUNK THE ECONOMIC ROLE OF THE STATE, AND HOW IT BREEDS CORRUPTION.