✦ LIBER ✦

POLICY ARENA: The Economics and Politics of Government Ownership

✍ Scribed by Mary M. Shirley

Publisher: John Wiley and Sons
Year: 1997
Tongue: English
Weight: 172 KB
Volume: 9
Category: Article
ISSN: 0954-1748
DOI: 10.1002/(sici)1099-1328(199709)9:6<849::aid-jid488>3.0.co;2-l

No coin nor oath required. For personal study only.

✦ Synopsis

Based in part on a new data set, this article ®nds that, despite an increase in privatization, state-owned enterprises (SOEs) shares in GDP and employment had not declined in developing countries, and SOE de®cits and ine iciencies were a drag on growth. In a sample of 12 reforming countries, those which improved SOE performance the most followed a comprehensive strategy of divestiture, competition, hard budgets, ®nancial sector reform and changes in the institutional relationship between SOEs and governments. These successful reformers met three necessary political conditions: reform was politically desirable, politically feasible and credible. The article presents a decision tree suggesting how to meet the three political conditions and privatize and reform SOEs.

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