Privatization : Trends and Recent Developments

This paper takes stock of recent privatization trends, examines the extent to which government ownership is still prevalent in developing countries, and summarizes emerging issues for state enterprise reform going forward. Between 1990 and 2003, 120 developing countries carried out nearly 8,000 privatization transactions and raised $410 billion in privatization revenues. Privatization activity peaked in 1997 and dropped off in the late 1990s and, while still at overall low levels, is slowly creeping back. While there are a large number of studies assessing the impact of privatization on enterprise performance and overall welfare, there are no systematic data on the extent to which privatization has changed the role of state enterprises in the economy. Anecdotal evidence suggests that the state's role has been substantially reduced in Eastern and Central Europe and in certain countries in Latin America. But available evidence also suggests that, despite a long track record of privatization, government ownership in state enterprises is still widely prevalent in some regions and countries, and in certain sectors in virtually all regions. The paper shows that the costs of not reforming state enterprises are high and that continued efforts need to be made to improve their performance by improving privatization policies and institutions; adopting more of a case-by-case approach for complex sectors and countries; and exposing state enterprises to market discipline through new private entry and exit of unviable firms and improvements in their corporate governance.

Bibliographic Details

Main Authors:	Kikeri, Sunita, Kolo, Aishetu Fatima
Language:	English
Published:	World Bank, Washington, DC 2005-11
Subjects:	ACCOUNTING, ASSET MANAGEMENT, ASSET MANAGEMENT COMPANIES, ASSET SALES, AUCTIONS, BANK PRIVATIZATION, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BANKS, CAPITAL MARKET, CAPITAL STOCK, CASE-BY-CASE PRIVATIZATION, COLLATERAL, COMMERCIAL BANKS, COMPANY, COMPETITIVE SECTOR, COMPETITIVE SECTORS, CONCESSION AGREEMENTS, CONCESSION CONTRACTS, CONGLOMERATES, CONTRACT RENEGOTIATIONS, CORPORATE GOVERNANCE, CORPORATIONS, DEBT, DEBT-EQUITY, DIRECT INVESTMENT, DIVESTITURE, DOMESTIC STOCK MARKET, EFFICIENCY GAINS, EMPLOYMENT, ENTERPRISE RESTRUCTURING, ENTERPRISE SECTOR, EQUITY SWAPS, EXECUTIVE DIRECTORS, FINANCIAL CRISIS, FINANCIAL DISTRESS, FINANCIAL PUBLIC ENTERPRISES, FINANCIAL SECTOR, FINANCIAL SERVICES, FIRM PERFORMANCE, FISCAL DEFICIT, FOREIGN ASSETS, FOREIGN COMPETITION, FOREIGN INVESTMENT, GLOBAL PRIVATIZATION, GOVERNMENT OWNERSHIP, GOVERNMENT REVENUES, GROSS PROCEEDS, HOUSING, IMPACT OF PRIVATIZATION, INCUMBENT OPERATOR, INDUSTRIAL SECTOR, INFRASTRUCTURE PRIVATIZATION, INFRASTRUCTURE SECTORS, INFRASTRUCTURE SERVICES, INSURANCE, INSURANCE COMPANIES, INTERNAL GOVERNANCE, INTERNATIONAL MARKET, INVENTORY, INVESTMENT CAPITAL, INVESTMENT IN PRIVATIZATION, INVESTMENT PROMOTION, LABOR FORCE, LARGE ENTERPRISES, LATIN AMERICAN, LAYOFFS, LIQUIDATION, MANAGEMENT CONTRACTS, MARKET DISCIPLINE, MARKET ENVIRONMENT, MARKET STRUCTURE, MASS PRIVATIZATION, MONOPOLIES, NATIONALIZATION, NET PROCEEDS, NONBANK FINANCIAL INSTITUTIONS, NONPERFORMING LOANS, NORTH AFRICA, NUMBER OF ENTERPRISES, OWNERSHIP DIVERSIFICATION, OWNERSHIP STRUCTURE, PERFORMANCE OF STATE, PRIVATE BUSINESS, PRIVATE COMMERCIAL BANKS, PRIVATE ENTRY, PRIVATE FIRMS, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE OPERATORS, PRIVATE PARTICIPATION, PRIVATE PARTIES, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR PARTICIPATION, PRIVATIZATION, PRIVATIZATION ACTIVITY, PRIVATIZATION DATABASE, PRIVATIZATION INTERNATIONAL, PRIVATIZATION METHOD, PRIVATIZATION METHODS, PRIVATIZATION OF BANKS, PRIVATIZATION POLICIES, PRIVATIZATION PROCEEDS, PRIVATIZATION PROCESS, PRIVATIZATION PROGRAM, PRIVATIZATION PROGRAMS, PRIVATIZATION REVENUES, PRIVATIZATION TRANSACTION, PRIVATIZATION TRANSACTIONS, PRIVATIZATION TRENDS, PRIVATIZATIONS, PROCEEDS, PROCEEDS FROM PRIVATIZATION, PRODUCTIVE ACTIVITY, PRODUCTIVITY, PUBLIC COMMERCIAL BANKS, PUBLIC ENTERPRISES, PUBLIC SECTOR, PUBLIC SUPPORT, REGULATORY CAPACITIES, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, SALE OF SHARES, SALE PRICE, SERVICE DELIVERY, SHARE OFFERINGS, SHARE SALES, SHAREHOLDERS, STATE BANKS, STATE CONTROL, STATE ENTERPRISE, STATE ENTERPRISE SECTOR, STATE ENTERPRISES, STATE FIRMS, STATE OWNERSHIP, STATE SECTOR, STATE SHARES, STATE-OWNERSHIP, STOCK MARKETS, SUB-SAHARAN AFRICA, SUBSIDIARY, TARIFF INCREASES, THE GAMBIA, TRANSPORT, UTILITIES, VOUCHER PRIVATIZATION, WATER CONCESSIONS, WATER SECTOR,
Online Access:	http://documents.worldbank.org/curated/en/2005/11/6399353/privatization-trends-recent-developments https://hdl.handle.net/10986/8494
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