Privatization in Development : Some Lessons from Experience

This paper briefly reviews the main theories of state versus private ownership and empirical evidence on the impact of privatization in developing countries (including transition economies). The paper draws some lessons for policy and offers some suggestions on how to assess privatization, at least in countries where there is still scope for it. The paper suggests that although understanding of the efficiency gains of privatization has increased significantly in recent years, there is an important area about which little is known: the distributional effects of privatization. Whether arguing from the standpoint of welfare economics or political economy, distributional effects are critical to the outcome, or the perceived outcome, of privatization. Thus, there is a need to fully evaluate the ex ante and ex post impacts of privatization, the most effective types of regulation and ownership regimes, and the way in which losers, when there are any, can be compensated. This is a need that must be met by academics and development agencies, including the World Bank and regional development banks.

Bibliographic Details

Main Authors:	Bourguignon, François, Sepulveda, Claudia
Language:	English
Published:	2009-11-01
Subjects:	ARREARS, BANK PRIVATIZATION, BANKRUPTCY, BENEFITS OF PRIVATIZATION, BUDGET CONSTRAINTS, CAPITAL INVESTMENT, CAPITAL STOCK, CAPITALIZATION, CENTRAL GOVERNMENT, CLEAN WATER, COLLECTIVE OWNERSHIP, COMPETITIVE ENVIRONMENT, CONSUMER SURPLUS, CONSUMER WELFARE, CONTRACTUAL OBLIGATION, CORPORATE GOVERNANCE, CORPORATE PERFORMANCE, DEREGULATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DISSOLUTION, DOMESTIC BUYERS, DOMESTIC INVESTMENT, ECONOMIC EFFICIENCY, ECONOMIC TRANSITION, ECONOMICS, ECONOMICS OF PRIVATIZATION, ECONOMIES IN TRANSITION, ECONOMIES OF SCALE, EFFICIENCY GAINS, EMPIRICAL ANALYSIS, EMPIRICAL ANALYSIS OF PROFITABILITY, EMPIRICAL EVIDENCE, EMPIRICAL STUDIES ON PRIVATIZATION, EMPLOYMENT, ENTERPRISE RESTRUCTURING, EXECUTIVE DIRECTORS, EXTENT OF PRIVATIZATION, EXTERNALITIES, FINANCIAL PERFORMANCE, FIRM PERFORMANCE, FIXED COSTS, FOREIGN OWNERS, FOREIGN OWNERSHIP, GROSS DOMESTIC PRODUCT, HARD BUDGET, HARD BUDGET CONSTRAINT, IMPACT OF PRIVATIZATION, IMPACT OF PRIVATIZATION ON EMPLOYMENT, IMPACT OF PRIVATIZATION ON PERFORMANCE, INCOME, INCOME GROUP, INCOME GROUPS, INSTITUTIONAL REFORMS, INTERNATIONAL BANK FOR RECONSTRUCTION, INVESTMENT FUNDS, INVESTMENT SPENDING, LABOR INTENSITY, LABOR MARKET, LAWS, LEVERAGE, LOCAL GOVERNMENTS, LOW-INCOME COUNTRIES, MACROECONOMIC IMPACT OF PRIVATIZATION, MAJORITY OWNERSHIP, MARGINAL COST, MARKET FAILURES, METHOD OF PRIVATIZATION, MIXED OWNERSHIP, MORTALITY RATE, MORTALITY RATES, MUNICIPALITIES, NEW PRODUCTS, OPERATING EFFICIENCY, OUTPUT, OUTPUT RATIO, OWNERSHIP CONCENTRATION, OWNERSHIP RIGHTS, OWNERSHIP STRUCTURE, POLITICAL ECONOMY, PRICE CAP, PRIVATE COMPANY, PRIVATE FIRMS, PRIVATE MONOPOLY, PRIVATE OWNERSHIP, PRIVATE SECTOR, PRIVATIZATION, PRIVATIZATION DATABASE, PRIVATIZATION EXPERIENCE, PRIVATIZATION IN TRANSITION ECONOMIES, PRIVATIZATION OPERATIONS, PRIVATIZATION PROCEEDS, PRIVATIZATION PROCESS, PRIVATIZATION PROGRAM, PRIVATIZATION PROGRAMS, PRIVATIZATION PROSPECTUS, PRIVATIZATION WORK, PRIVATIZATIONS, PROCEEDS FROM PRIVATIZATION, PROCUREMENT, PRODUCTIVE ASSETS, PRODUCTIVE EFFICIENCY, PRODUCTIVITY, PROFITABILITY, PROPERTY RIGHTS, PUBLIC COMPANIES, PUBLIC ENTERPRISES, PUBLIC OWNERSHIP, PUBLIC SECTOR, PUBLIC SECTOR REFORM, PUBLIC SECTORS, REGIONAL DEVELOPMENT BANKS, REGULATED UTILITIES, REGULATORY CHANGES, STATE FIRMS, STATE OWNERSHIP, TRANSFER OF OWNERSHIP, TRANSITION ECONOMIES, TYPE OF OWNERSHIP, UNBUNDLING, UNIT COST, UTILITIES, VARIABLE COST, WATER COMPANIES, WATER DISTRIBUTION, WATER PROVISION, WAVE OF PRIVATIZATION, WORLD DEVELOPMENT INDICATORS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091116131648 https://hdl.handle.net/10986/4323
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