Privatization in Competitive Sectors: The Record to Date
The paper reviews recent evidence on the
impact of privatization. It focuses on traditional
privatization efforts involving firms in competitive
markets. It shows that privatization improves firms'
financial and operating performance, yields positive fiscal
and macroeconomic benefits (proceeds are saved rather than
spent, transfers decline, and governments start collecting
taxes from privatized firms), and improves overall welfare.
The popular view that privatization always leads to layoffs
is unfounded. While highly protected firms have seen
significant declines in net employment, competitive firms
generally experienced slight declines if any.
Privatization's effects on wealth and income
distribution have only recently been receiving the attention
of analysts, and research is just getting underway. The
paper highlights the conditions for successful
privatization: strong political commitment combined with
wider public understanding of and support for the process;
creation of competitive markets through removal of entry and
exit barriers, financial sector reforms that create
commercially oriented banking systems, effective regulatory
frameworks that reinforce the benefits of private ownership;
transparency in the privatization process; and measures to
mitigate adverse social and environmental effects.
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Bibliographic Details
| Main Authors: |
Kikeri, Sunita,
Nellis, John |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, D.C.
2002-06
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| Subjects: | ACCOUNTING,
BANKING SYSTEM,
BANKRUPTCY,
CAPITAL MARKETS,
COMMERCIAL BANKS,
CORPORATE GOVERNANCE,
DEBT,
DEREGULATION,
ECONOMIC CONDITIONS,
ECONOMIC REFORM,
ECONOMIC REFORMS,
EMPLOYMENT,
FINANCIAL CRISIS,
FINANCIAL INSTITUTIONS,
FISCAL DEFICITS,
FOREIGN EXCHANGE,
FOREIGN OWNERSHIP,
HARD BUDGET CONSTRAINTS,
HIGH INCOME COUNTRIES,
INCOME DISTRIBUTION,
INDUSTRIALIZED COUNTRIES,
INFLATION,
INSTITUTIONAL DEVELOPMENT,
INSURANCE,
INTEREST RATES,
INTERNATIONAL FINANCE,
INVESTMENT SPENDING,
LEGAL SYSTEMS,
MARKET ECONOMY,
MERGERS,
MIDDLE INCOME COUNTRIES,
MIXED ENTERPRISES,
NET ASSETS,
OPERATING EFFICIENCY,
PRIVATE ENTERPRISES,
PRIVATE OWNERSHIP,
PRIVATE SECTOR,
PRIVATIZATION,
PRODUCTIVITY,
PROFITABILITY,
PUBLIC ENTERPRISES,
PUBLIC EXPENDITURES,
PUBLIC OWNERSHIP,
PUBLIC SECTOR,
PUBLIC SERVICES,
RETIREMENT,
SHAREHOLDERS,
SHAREHOLDING,
STATE BANKING,
STATE ENTERPRISES,
STATE OWNERSHIP,
TRADING,
TRANSITION ECONOMIES,
TRANSPORT,
UNEMPLOYMENT INSURANCE,
VOUCHER PRIVATIZATION PRIVATIZATION,
COMPETITIVENESS,
FINANCIAL PERFORMANCE INDICATORS,
REVENUE SOURCES,
TAX COLLECTION,
UNEMPLOYMENT,
UNEMPLOYMENT LEVELS,
WEALTH,
GOVERNMENT COMMITMENTS,
PUBLIC AWARENESS,
PUBLIC CONSULTATION,
BARRIERS TO ENTRY,
FINANCIAL SECTOR REFORM,
BANKING SYSTEMS,
REGULATORY FRAMEWORK,
ENVIRONMENTAL MITIGATION,
SOCIAL EFFECTS OF PROJECTS, |
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| Online Access: | http://documents.worldbank.org/curated/en/2002/06/1953633/privatization-competitive-sectors-record-date
https://hdl.handle.net/10986/14257
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