Privatization and Economic Performance
1. Introduction ¨ Privatization involves selling state-owned assets to the private sector. It is argued the private sector tends to run a business more efficiently because of the profit motive. However, critics argue private firms can exploit their monopoly power and ignore wider social costs. ¨ Privatization is often achieved through listing the new private company on the stock market. In the 1980s and 1990s, the UK privatized many previously state-owned industries such as BP, BT, British Airways, electricity companies, gas companies and rail network ¨ Privatization of public enterprises have been very much in the agenda of economic liberalization in contemporary world specially in developing and countries in transition. ¨ Different modalities of privatization with lofty goals such as enhancing productive efficiency , allocative efficiency and to rescue governments from budgetary burdens. ¨ Upon the evaluation of private and publ...