A Prescription That Doesnt Always Work
Tuesday, November 13, 2001
In many countries, privatization has improved the performance of companies. But not all privatization efforts have succeeded. In Russia, hurriedly-conceived and mismanaged privatization pushed the economy into decline.
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Many people still cannot accept that a state-owned enterprise (SOE), usually linked to public interests, should fall into private hands. Yet the privatization of SOEs is not unusual. Many governments have turned over the management of state companies to the private sector. Power stations, transportation services, water supply businesses, cement plants, even prisons have been sold to private interests. In the last 20 years, privatization has unque...
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