The possibility of privatization

Abstract EN

This study addresses itself to the issue of privatization as a strategy for reforming public enterprises (PEs), which is currently being implemented or under consideration for implementation in various countries.

It is consisted of three main parts.

The first introductory part is a theoretical framework.

It outlines the importance, assumptions and methodology of the study.

It discusses also the nature of goods and services according to a selected criteria of exclusion and joint consumption which determine whether or not goods or services will be produced and the conditions that they will be provided.

The second part is the body of the study.

It discusses reasons for privatizations, alternative policies for its implementation, their pros and cons, and the managerial aspects to be taken into consideration in the process of implementing privatization.

The third part presents the conclusions of the study.

It is concluded that privatization must not be considered a panacea for all economic and social ills.

Instead, a pragmatic national policy must recognize the limits of privatization policies and understand when they might work better than other forms of reform.

Moreover, privatization should not be tried only through the sale of assets because it bears great political, economic as well as social problems which less developed countries (LDCs) cannot afford.